[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: 24CFR943.150]



[Page 395]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 943_PUBLIC HOUSING AGENCY CONSORTIA AND JOINT VENTURES--Table of 

Contents

 

  Subpart C_Subsidiaries, Affiliates, Joint Ventures in Public Housing

 

Sec.  943.150  What procurement standards apply to a PHA's joint venture 

partner?



    (a) General. A joint venture partner is not a grantee or subgrantee 

and, accordingly, is not required to comply with part 84 or part 85 of 

this title in its procurement of goods and services under this part. The 

partner must comply with all applicable State and local procurement and 

conflict of interest requirements with respect to its selection of 

entities to assist in PHA program administration.

    (b) Exception. If the joint venture partner is a subsidiary, 

affiliate, or identity of interest party of the PHA, it is subject to 

the requirements of part 85 of this title. HUD may, on a case-by-case 

basis, exempt such a joint venture partner from the need to comply with 

requirements under part 85 of this title if HUD determines that the 

joint venture has developed an acceptable alternative procurement plan.

    (c) Contracting with identity-of-interest parties. A joint venture 

partner may contract with an identity-of-interest party for goods or 

services, or a party specified in the selected bidder's response to a 

RFP or RFQ (as applicable), without the need for further procurement if:

    (1) The PHA can demonstrate that its original competitive selection 

of the partner clearly anticipated the later provision of such goods or 

services;

    (2) Compensation of all identity-of-interest parties is structured 

to ensure there is no duplication of profit or expenses; and

    (3) The PHA can demonstrate that its selection is reasonable based 

upon prevailing market costs and standards, and that the quality and 

timeliness of the goods or services is comparable to that available in 

the open market. For purposes of this paragraph (c), an ``identity-of-

interest party'' means a party that is wholly owned or controlled by, or 

that is otherwise affiliated with, the partner or the PHA. The PHA may 

use an independent organization experienced in cost valuation to 

determine the cost reasonableness of the proposed contracts.