xt7sbc3sz359 https://exploreuk.uky.edu/dips/xt7sbc3sz359/data/mets.xml United States Housing Authority Straus, Nathan 1889-1961 Works Progress Administration Housing Publications United States Housing Authority Straus, Nathan 1889-1961 1940 3 unnumbered pages 27 cm. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call Number: FW 3.9:15/add.2 books  English Washington: Federal Works Agency, United States Housing Authority  This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. Works Progress Administration Housing Publications Public housing -- United States Contracting out -- United States Steps in the Development of a Low-Rent Housing Project Subsequent to the Execution of the Contracts for Loan and Annual Contributions. Addendum 2, Award of contracts to the Lowest Bidder, 1940 text Steps in the Development of a Low-Rent Housing Project Subsequent to the Execution of the Contracts for Loan and Annual Contributions. Addendum 2, Award of contracts to the Lowest Bidder, 1940 1940 1940 2021 true xt7sbc3sz359 section xt7sbc3sz359 r .. rl-vw rv-w

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Steps 1n the Development

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Univ of Ky Ibrari 0f a

LOW/Rent ~ Housing Project

SUBSEQUENT TO THE EXECUTION
OF THE CONTRACTS FOR LOAN
AND ANNUAL CONTRIBUTIONS

ADDENDUM

NOVEMBER 16, 1940

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FEDERAL WORKS AGENCY . UNITED STATES HOUSING AUTHORITY "

 

 

 

Award of Contracts to the Lowest Bidder

 

  

 

ADDENDUM 2

to

BULLETIN No. 15 ON POLICY AND PROCEDURE
(Revised March 21, 1940)

entitled

Steps in the Development of a Low-Rent Housing
Project Subsequent to the Execution of the Con-

tracts for Loan and Annual Contributions

 

This Addendum is being issued to restate the USHA policy that
all contracts shall be awarded on the basis of the lowest bid
received from responsible bidders, and to explain the meaning of
the term “lowest bid received” as used in this connection. As the
Addendum points out, the USHA policy with respect to contract
awards is designed to assure that bids are not evaluated on any
basis other than the cost of procuring the necessary labor or mate—
rials, or both. The USHA cannot approve any contract awards
which are not made on a basis which will provide the items
specified at the lowest initial cost. Similarly, the USHA cannot
advance funds for payments on any contracts which may be subse-
quently awarded on any other basis.

FEDERAL WORKS AGENCY

UNITED STATES HOUSING AUTHORITY

Washington

 

 

 STEPS IN THE DEVELOPMENT OF A LOW-RENT
HOUSING PROJECT
ADDENDUM 2

Award of Contracts to the Lowest Bidder

SCOPE AND CONTENT.

This Addendum clarifies the meaning of
the term “lowest bid received” as the only
approved basis for awarding contracts,
and sets forth the general principles
governing USHA approval of contract
awards.

I. EXPLANATION OF THE TERM “LOWEST
BID RECEIVED.”

The USHA policy that all contracts shall
be awarded on the basis of the lowest bid
received from responsible bidders is set
forth in many USHA policy documents.
Paragraph XIII Of Bulletin No. 15, for
example, provides that all contracts shall
be awarded on this basis. Some local
authorities have interpreted the term
“lowest bid received” so as to permit the
evaluation of bids on a basis other than
the cost of procuring labor or material, or
both. This interpretation cannot be
approved by the USHA. The term “low-
est bid received,” as used in the require-
ment that all contracts shall be awarded
on the basis of the lowest bid received,
means the bid which will provide the items
described in the specifications at the lowest
initial cost.

II. PRINCIPLES GOVERNING USHA AP-
PROVAL OF CONTRACT AWARDS.

To assure the award of all construction,
equipment, and material contracts on the
basis explained above, the USHA will
henceforth follow the general principles
outlined below in passing on proposed con-
tract awards:

(a) The USHA will not approve any
specifications or bid documents which con-
tain clauses permitting an evaluation of
bids on any basis other than the cost of
procuring the labor or materials involved,
or both, and will not approve any specifi-

cations containing a multiplicity of alter-
nates which will permit the switching of
bidders by the selection of a particular
alternate.

(b) If the local authority deems it nec—
essary or advisable to ask for alternate
bids, the USHA requires (1)1 that a defi-
nite understanding be reached by the
USHA and the local authority involved,
prior to the USHA’s approval of the speci-
fications, as to the basis and order of
accepting or rejecting alternates and
(2) that all bidders be informed of this
understanding. If the local authority re-
quests alternates but does not set up in
advance any basis or order to determine
the selection of alternates, the USHA will
not approve any contract award which is
not made on the basis of the lowest initial
cost obtainable under the bids received.
Furthermore, to receive USHA approval
of the award in such a case, all alternates
which deduct from the base bid, without
reducing the number of dwelling units,
must be accepted in determining the lowest
initial cost.

(0) In short, the USHA will not ap-
prove any contract or contract award which
is not made on the basis of the lowest bid
received (i. e., the bid which will provide
the item or items involved at the lowest
initial cost).

No funds of the USHA will hereafter be
advanced to cover payments on any con-
tract which may subsequently be awarded
by any local authority in a manner incon-
sistent with this Addendum.

W

Administrator.

November 16, 1940.

U 5. GOVERNMENT PRINTING OFFICE 276851