Procurement and Contract Management-Answer Key

Answer Key - Case Study Combined
Pdf Summary
The case studies presented focus on various procurement and contracting issues within housing authorities. Below is a summary of key elements and insights drawn from each case:

<strong>Case Study #1: Sealed Bid</strong>
The Dealer’s Choice HA structured an IFB for fence construction into a base bid with alternate bids due to budget limitations. A fire incident at Site 1A created issues with existing IFB specifications. The maintenance chief decided to award the bid to ACE Fencing with a change order planned post-award to manage the altered conditions. ACE offered the lowest price for the base bid and an alternate.

<strong>Case Study #2: Cost Analysis</strong>
Can Doit Consultants submitted a comprehensive cost proposal for a PHA’s needs assessment contract. The evaluation focused on validating cost and price data, the firm's practices, previous costs, and technical approaches relative to proposed costs. The scrutiny highlighted questionable elements such as labor overhead, travel expenses, and profit margins.

<strong>Case Study #3: Competitive Range</strong>
The Up The Creek HA assessed six technical proposals for an organizational assessment contract. The competitive range, based on technical scores and cost, included proposals scoring between 84 and 90, focusing on technical capability over lower costs.

<strong>Case Study #4: A/E Contracting</strong>
The Kentucky Housing Authority issued an RFP for A/E services following state law prioritizing qualifications over price. The contract was awarded to the highest technically rated firm despite a higher price due to negotiated cost reductions.

<strong>Case Study #5: Noncompetitive Contract</strong>
HACK justified a noncompetitive contract with HAL, Inc. for system enhancements due to the company’s prior knowledge of their systems, suggesting the cost-effectiveness and immediate necessity justified the award.

<strong>Case Study #6: Elevator Maintenance Contract</strong>
The statement of work for elevator maintenance lacked specificity, risking cost increases and misunderstandings. Improvements suggested included more detailed specifications.

<strong>Case Study #7: Product Specification</strong>
Concerns rose from a direct purchase order request without competitive bidding or cost rationalization. Recommendations included detailing alternatives and conducting an independent cost estimate.

<strong>Case Study #8: Receiving and Inspecting Goods</strong>
Issues arose from poor handling of delivered goods, including unverified invoices and uninspected goods, causing financial disputes. Proposed changes included ensuring authorized personnel are always available for goods receipt.

<strong>Case Study #9: Contract Administration</strong>
Addressing change orders efficiently was critical. The local housing authority faced challenges due to poor cost justification and neglect in issuing proper addendums for contract changes, underscoring the need for thorough cost analysis and adherence to administrative procedures. 

These case studies emphasize strategic planning, thorough evaluation, and adherence to procurement regulations as vital components to successful contract management within housing authorities.
Keywords
procurement
contracting
housing authorities
sealed bid
cost analysis
competitive range
A/E contracting
noncompetitive contract
product specification
contract administration