[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR891.535]



[Page 203-204]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 891_SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES

--Table of Contents

 

      Subpart E_Loans for Housing for the Elderly and Persons with 

                              Disabilities

 

Sec.  891.535  Requirements for awarding construction contracts.



    (a) Awards shall be made only to responsible contractors that 

possess the potential ability to perform successfully under the terms 

and conditions of a proposed construction contract. Consideration shall 

be given to such matters as contractor integrity, compliance with public 

policy, record of past performance, and financial and technical 

resources.

    (b) Each Borrower is permitted to use either competitive bidding 

(formal advertising) in selecting a construction contractor or the 

negotiated noncompetitive method of contract award under paragraph (c) 

of this section. In competitive bidding, sealed bids are publicly 

solicited and a firm, fixed-price contract is awarded (in accordance 

with the requirements of this paragraph (b)) to the responsible bidder 

whose bid, conforming with all the material terms and conditions of the 

invitation for bids, is lowest in price. Regardless of which method a 

Borrower uses, there should be an opportunity for minority owned and 

women owned businesses to be awarded a contract.

    (1) Bids shall be solicited from an adequate number of known 

contractors a reasonable time prior to the date set forth for opening of 

bids. In addition, the invitation shall be publicly advertised.

    (2) The invitation for bids shall specify:

    (i) The name of the Borrower;

    (ii) A brief description of the proposed project and the proposed 

construction contract;

    (iii) A preliminary estimate of cost;

    (iv) That bids will be received at a specified place until a 

specified time at which time and place all bids will be publicly opened;

    (v) The location where the proposed forms of contract and bid 

documents, including plans and specifications, are on file and may be 

obtained on payment of a specified returnable deposit;

    (vi) That a certified check or bank draft or satisfactory bid bond 

in the amount of 5 percent of the bid shall be submitted with the bid;

    (vii) That the successful bidder will be required to provide 

assurance of completion in the form of a performance and payment bond or 

cash escrow; and

    (viii) That the Borrower reserves the right to reject any or all 

bids and to waive any informality.

    (3) The bid form, which must be submitted by all bidders, must 

specify:

    (i) The name of the project;

    (ii) The name and address of the bidder;

    (iii) That the bidder proposes to furnish all labor, materials, 

equipment and services required to construct and complete the project, 

as described in the invitation for bids (including the contents of all 

documents on file), for a specified lump-sum price;

    (iv) That the security specified in paragraph (b)(2)(vi) of this 

section accompanies the bid;

    (v) The period after the bid opening during which the bid shall not 

be withdrawn without the consent of the Borrower;

    (vi) That the bidder will, if notified of acceptance of such bid 

within a specified period after the opening, execute and deliver a 

contract in the prescribed form and furnish the required bond within ten 

days thereafter;

    (vii) That the bidder acknowledges any amendments to the invitation 

for bids; and

    (viii) That the bidder certifies that the bid is in strict 

accordance with all terms of the invitation for bids (including the 

contents of all documents on file) and that the bid is signed by a 

person authorized to bind the bidder.

    (4) Bidding shall be open to all general contractors who furnish the 

security guaranteeing their bid, as described in paragraph (b)(2)(vi) of 

this section.

    (5) All bids shall be opened publicly at the time and place stated 

in the invitation for bids, in the presence of the



[[Page 204]]



HUD Regional Administrator or his designee.

    (6) A firm, fixed-price contract award shall be made by written 

notice to the responsible bidder whose bid, conforming to the invitation 

for bids, is lowest. The contract may provide for an incentive payment 

to the contractor for an early completion.

    (c) A Sponsor or Borrower may award a negotiated, noncompetitive 

construction contract.