Submitted by: Submitted by AnneW
Views: 10
Words: 342
Pages: 2
Category: Business and Industry
Date Submitted: 10/12/2016 06:53 PM
CDBG Financial Management and Procurement
Case Study #2
“Managing the Procurement Process”
The State of Everywhere’s Department of Economic and Community Development (DECD) is
responsible for working with local communities to determine if State CDBG subgrantees are
in compliance with their grant agreements and if program requirements are being met.
The City of Location’s Office of Community Development (OCD) received funding from the
State’s CDBG program for the construction of a playground in a low income neighborhood.
OCD staff needed to contract with an outside firm to carry out the project, budgeted at
approximately $110,000. Both the Federal regulations and the State define a small purchase
as one with a value of less than $100,000, while the City’s ordinances set the threshold at
$75,000. As a result, OCD staff were not able to utilize small purchase procedures, and
instead conducted the procurement for this work by sealed bid. Based on past experience,
OCD expected that at least four firms would be willing and able to compete effectively for the
business.
OCD staff began the process by developing detailed specifications for the work. They then
began to assemble the complete invitation for bids, which included the specifications, general
conditions, and other requirements. The City experienced several delays in finalizing the
specifications, and fell about two weeks behind their original timeline for issuing the invitation
for bids. The invitation for bids was publicly advertised for 15 days before the date set for
opening the bids. As of the opening date, OCD had received only two bids for the work –
both for the same amount.
1. What are the key conditions or requirements for obtaining bids under “sealed bid”
procedures?
2. Did OCD meet all of these conditions? What, if anything, could have been done
differently?
3. If the contract value had been $90,000, would the method of procurement have been
different? If so, how?
4. If the...