Procurement and Contract Management-Answer Key

Answer Key - Practice Exam

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The final exam from the National Association of Housing and Redevelopment Officials (NAHRO) covers various aspects of procurement and contract administration for public housing agencies, as outlined in the HUD Handbook 7460.8 Rev. 2. Key points include:

1. <strong>Regulations and Compliance</strong>: The handbook defines regulations and includes recommended HUD forms. Public bid openings over $250,000 must be conducted in public, whereas proposals remain confidential until evaluated. A proposal evaluation system is prepared in advance to ensure objectivity.

2. <strong>Contractor Responsibility</strong>: Contrary to some beliefs, the ultimate responsibility for compliance with federal, state, and local requirements does not rest solely with contractors.

3. <strong>Procurement Methods</strong>: 
   - Purchases under $10,000 can be made without competition.
   - Fringe benefits can be paid in cash or into an approved fund.
   - Certain procurement methods like competitive negotiation allow for proposal and price adjustments, but sealed bid prices cannot be adjusted post-opening.
   - HUD checks for contractors not excluded from federal programs.

4. <strong>Contract Awards</strong>: 
   - Qualifications, lowest price, and established evaluation factors are bases for awarding contracts under different procurement methods like RFQ, IFB, and RFP, respectively.
   - Contracts exceeding small purchase thresholds usually require HUD approval unless only one bid is received.

5. <strong>Labor Standards and Compliance</strong>: 
   - Davis-Bacon wage rates apply to contracts over $2,000, requiring on-site wage interviews to verify compliance.
   - Contractors must pay overtime for work exceeding 40 hours per week.

6. <strong>Construction Practices</strong>: 
   - Pre-construction conferences are held to clarify requirements.
   - Liquidated damages are applied for delayed project completion.
   - Bid guarantees, typically 5%, are required.

7. <strong>Additional Insights</strong>: Public housing authorities can use a centralized procurement model and are required to incorporate Section 3 compliance in proposals. Most contracts are warranted for one year, underscoring the importance of understanding bid and contract stipulations.

A thorough understanding of these elements ensures robust procurement and contract administration within public housing sectors.

Keywords

NAHRO final exam

procurement

contract administration

HUD Handbook 7460.8

public housing agencies

contractor responsibility

procurement methods

contract awards

Davis-Bacon wage rates

construction practices