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.

Determine the Procurement Type

Micro-Purchase *

Micro-Purchase method may only be used on supplies or services costing $3,000 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 $250,000 in the aggregate
    • 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) and Community Affairs contracts, all vehicles purchased with state or federal funds must be pre-approved by the Department via written correspondence. Additionally, certain equipment and capital expenditures might require prior written approval from the Department as outlined within 2 CFR §200.439 and/or the “Procurement Standards” section of your program contracts. Examples include: general purpose equipment, buildings, land, special purpose equipment, etc


Sealed Bid (requires formal advertisement)

For goods and services with a clearly definable work scope/specifications and firm fixed price

  • Determining factor:  Lowest responsive and responsible bidder
  • Example:  fleet vehicles; contractors/vendors for fixed price contracts
  • Negotiation of bid results is not allowed.

Note: Per §TAC 1.404 (f) and Community Affairs contracts, all vehicles purchased with state or federal funds must be pre-approved by the Department via written correspondence. Additionally, certain equipment and capital expenditures might require prior written approval from the Department as outlined within 2 CFR §200.439 and/or the “Procurement Standards” section of your program contracts. Examples include: general purpose equipment, buildings, land, special purpose equipment, etc.


Competitive Proposal (requires formal publication)

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

  • Determining factor:  Based on evaluation criteria (EX: price, qualifications, experience, knowledge)
  • Examples:  Attorneys, Computer Maintenance, Audit Services, Weatherization Contractors or Wx work
  • Negotiation of bid results is allowed

Note: Per §TAC 1.404 (f) and Community Affairs contracts, all vehicles purchased with state or federal funds must be pre-approved by the Department via written correspondence. Additionally, certain equipment and capital expenditures might require prior written approval from the Department as outlined within 2 CFR §200.439 and/or the “Procurement Standards” section of your program contracts. Examples include: general purpose equipment, buildings, land, special purpose equipment, etc.


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
  • A public emergency exists preventing the time required for competitive solicitation; or
  • After solicitation of a number of sources, competition is determined inadequate and documentation of effort to solicit multiple sources is maintained (by far, the most common).;

Note: Per §TAC 1.404 (f) and Community Affairs contracts, all vehicles purchased with state or federal funds must be pre-approved by the Department via written correspondence. Additionally, certain equipment and capital expenditures might require prior written approval from the Department as outlined within 2 CFR §200.439 and/or the “Procurement Standards” section of your program contracts. Examples include: general purpose equipment, buildings, land, special purpose equipment, etc.