Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Community Affairs Procurement

The Department offers the following procurement resources for Community Affairs programs. Note: sample documents are provided as examples only. It is the responsibility of the Subrecipients to ensure that all local, state and federal procurement requirements are followed. Subrecipients are advised to review the rules or citations for any updates prior to any procurement.

(Reference below from TXGMS*)

* TxGMS applies to grants and contracts that begin on or after January 1, 2022. If a state awarding agency adds funds to a grant that existed before March 1, 2021, TxGMS will apply to it from that point forward, unless the state awarding agency specifically indicates that TxGMS will not apply. TxGMS may also be applied to grants and contracts by agreement between the parties.

Determine the Procurement Type

Micro-Purchase *

Micro-Purchase method may only be used by Private Nonprofits who administer the DOE-WAP on those services, supplies, or equipment costing $3000 in the aggregate or $2,000 or less in the case of acquisitions for construction subject to the Davis-Bacon Act.

  • Micro-purchases may be awarded without soliciting competitive quotations if the Subrecipient considers the price reasonable.
  • To the extent practical, the Subrecipient must distribute micro-purchases equitably among qualified suppliers.

Small Purchase *

For goods and services when:

  • Price is less than $150,000 in the aggregate:
    • For single purchases or individual recurring purchases made without contract: aggregate costs means the cost of the individual purchase
    • For contracts: aggregate costs means the total potential cost of the contract, including any option years and amendments, or the time between full procurements for that same goods/services/etc
    • Provide a clear and accurate description of the technical requirements for the material, product, or service to be procured.
  • Determining factor: Most reasonable and responsive lowest written price
  • Example: Office supplies; miscellaneous repairs/equipment, vehicle purchase, equipment repair services

NOTE: Per §TAC 1.404 (f) All vehicles considered for purchase with state or federal funds must be pre-approved by the Department via written correspondence from the Department.


Sealed Bid (requires formal advertisement)

For goods and services with a fixed price

  • Determining factor:  Most reasonable, responsible, responsive bid
  • Example:  fleet vehicles; contractors for the installation of HVAC, WX work
  • Negotiation of bid results is not allowed.

NOTE: Per §TAC 1.404 (f) All vehicles considered for purchase with state or federal funds must be pre-approved by the Department via written correspondence from the Department.


Competitive Proposal (requires formal publication)

For Professional or Consulting Services, the Competitive Proposal method is most advantageous to the Administrator

  • Determining factor:  Provider price, qualifications, experience, knowledge
  • Examples:  Attorneys, Computer Maintenance, Audit Services, Weatherization Contractors or Wx work
  • Negotiation of bid results is allowed

Non-Competitive or Lack of Competition

After the completion of an acceptable procurement process (i.e. small purchase, sealed bids, and/or competitive proposal), competition is determined inadequate. A non-competitive proposal may be accepted only if:

  • The service, supply, or equipment is available only from a single source and documentation of why service/product is only available from one vendor is maintained; or
  • After solicitation of a number of sources, competition is determined inadequate and documentation of effort to solicit multiple sources is maintained;
  • A public emergency exists preventing the time required for competitive solicitation (AC's, blankets, propane, etc.).