Updated: 6/10/2019 Page 1 of 25 State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI) Professional Procurement Requirements These guidelines are based on our procurement policy for the use by Community Development Block Grant-Infrastructure grantees. Our procurement policy was developed upon the advice of James Höemann, Deputy Director of the State and Small Cities Program, to replace Subpart D of 2 Part 200, which does not apply to the CDBG State programs, per 2 Part 200.101(d). This policy takes the most stringent of the two procurement requirements, either state or federal, and applies them to our Units of General Local Government (UGLG) grantee’s procurement. Professional services include, but are not limited to grant writing, grant administration, engineering, surveying, environmental documentation preparation, labor standards compliance, easement/property appraisals, legal review, accounting, etc. If an UGLG (and their contractors*, if applicable) secures the services of professionals without following the most stringent procurement regulations, the consequences may include: 1. Costs to the UGLG that will not be eligible for CDBG-I reimbursement; 2. Project delays; and 3. Formal grievances from citizens and businesses that may have been excluded from the procurement process. Under 2 C.F.R. §200.318(e), UGLGs may enter into intergovernmental agreements or inter-entity agreements where appropriate to foster greater economy and efficiency to promote cost-effective use of common or shared goods and services. Thus, UGLGs wanting to contract for grant preparation and/or grant administration with a regional or metropolitan planning commission (RPC/MPC) or councils of government (COG) may do so without regard to the federal procurement regulations provided that such services are billed on an actual cost basis. The primary function of RPC/MPCs and COGs is to provide assistance to units of local government, under the direct supervision and control of elected officials from the local units of government served. The public purpose served by the RPC/MPCs and COGs, combined with their local control, tends to provide protection equal to those contemplated by the provisions of Subpart If an UGLG is awarded a CDBG-I grant, professional services contracts (except for grant application preparation) CANNOT be executed until the Division EXECUTES and SENDS BACK the final copy of the Grant Recipient’s Contract. This document is intended as general information only and does not carry the force of legal opinion. The Division of Water Infrastructure (DWI) is providing this information as a public service. This information and related materials are presented to give the public access to information on CDBG-I professional procurement requirements. You should be aware that, while we try to keep the information timely and accurate, there will often be delay between official publications of the materials and the modification of these pages. Therefore, we make no express or implied guarantees. The Federal Register and the Code of Federal Regulations remain the official source for regulatory information published by the Department of Housing and Urban Development. We will make every effort to keep this information current and to correct errors brought to our attention.
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Updated: 6/10/2019 Page 1 of 25
State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Professional Procurement Requirements
These guidelines are based on our procurement policy for the use by
Community Development Block Grant-Infrastructure grantees. Our
procurement policy was developed upon the advice of James Höemann,
Deputy Director of the State and Small Cities Program, to replace Subpart D
of 2 Part 200, which does not apply to the CDBG State programs, per 2 Part
200.101(d). This policy takes the most stringent of the two procurement
requirements, either state or federal, and applies them to our Units of
General Local Government (UGLG) grantee’s procurement.
Professional services include, but are not limited to grant writing, grant
State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Sole – Source Usage
If after the initial solicitation of proposals/qualifications only one response was received, the UGLG is required to
broaden their initial publication and direct solicitation by republishing in a larger circulation newspaper and expanding
direct solicitation efforts. If after the second attempt, the solicitation is still determined to be inadequate (only one
response received), the UGLG must provide CDBG-I Program Supervisor:
1. Copies of advertisement and affidavits of publication of ads in the newspaper, and list of those firms directly
solicited.
2. A statement of how profit was negotiated, and what the expected profit to the business is.
The CDBG-I Program Supervisor will review and consider these documents to determine whether a sole source contract
is appropriate.
The CDBG-I Program will approve the use of the non-competitive proposal procedure on a case-by-case basis only.
Affirmative Action in Soliciting Minority/Women Business Enterprises Executive Orders 11625, 12432 and 12138, and NCGS §143-48 require the UGLG to make every effort to solicit the
participation of minority and women business enterprises (M/WBE) in their projects. UGLGs must specify in their Equal
Opportunity Plan and Procurement Plan the outreach actions they will take to ensure the inclusion, to the maximum
extent possible, of minorities and women and entities owned by minorities and women, in all contracts.
UGLGs must include qualified M/WBEs on their direct solicitation lists and solicit their participation whenever they are
potential sources of goods or services. State statute in NCGS 143-48(b) requires the reporting of percentages of
contracts made to minority-owned businesses, female-owned businesses, and disabled person-owned businesses, as
well as the percentage of contracts made to nonprofit work centers for the blind and disabled, to the NC Department of
Administration’s Historically Underutilized Business Section.
Section 3 Section 3 is a provision of the Housing and Urban Development Act of 1968, which recognizes that HUD funds are
typically one of the largest sources of federal funding expended in communities through the form of grants, loans,
entitlement allocations and other forms of financial assistance. Section 3 is intended to ensure that when employment
or contracting opportunities are generated because a covered project or activity necessitates the employment of
additional persons or the awarding of contracts for work, preference must be given to low- and very low-income persons
or business concerns residing in the community where the project is located. There are examples on how UGLGs can
provide and award contracts to Section 3 in this guidance.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Affirmative Steps for Soliciting Both M/WBEs and Section 3 Businesses Must Include the
Following: 1. Placing qualified small, minority, and female owned businesses on solicitation lists.
2. Assuring that small, minority and female owned businesses are solicited whenever they are potential sources.
3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum
participation by small and minority business, and women’s business enterprises.
4. Establishing delivery schedules, where the requirement permits, which encourages participation by small and
minority businesses, and women’s business enterprises.
5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration,
the Minority Business Development Agency of the Department of Commerce, and the M/WBE list at NC
Department of Administration.
6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed above.
Conflict of Interest UGLGs (and its contractors) must adhere to federal conflict of interest policies (24 CFR §570.611 and 2 CFR §200.318)
when procuring supplies, equipment, construction, and services.
In essence, no persons (employee, agency, consultant, officer, elected official, appointed official of the UGLG, or of any
designated public agencies, or of contractors that are receiving CDBG funds) who exercise or have exercised any
functions or responsibilities with respect to CDBG activities, or who are in a position to participate in a decision making
process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-
assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a CDBG-assisted
activity, or with respect to the proceeds of the CDBG-assisted activity, either for themselves or those with whom they
have business or immediate family ties, during their tenure or for one year thereafter.
Furthermore, no employee, officer, or agent may participate in the selection, award, or administration of a contract
supported by a CDBG award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise
when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization
which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible
personal benefit from a firm considered for a contract.
Refer to 24 CFR §570.611 and 2 CFR §200.318 for additional details.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Records The UGLG must maintain complete records that document the rationale for the method used for procurement, selection
of the contract type, contractor selection or rejection, and the basis for the selection including cost or price.
It is the UGLG’s responsibility to solicit for grant administration services. It is a conflict of interest (24 CFR §570.611) for a
grant administrator to help the UGLG with the procurement of grant administration if they intend to submit a proposal.
This includes developing the Request for Proposals and handling the solicitation process. However, a potential grant
administrator can provide this guidance sheet and examples. UGLGs can also contact CDBG-I Unit staff for technical
assistance.
UGLG’s must document the entire procurement progress to show that it was conducted to allow a full, fair, and open
competition.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Steps for Procurement of Professional Services
As mentioned in this guidance, procurement of professional services can be overwhelming for some communities with
limited staff and/or no town/county administrator/manager to assist them. Therefore, the CDBG-I Unit has developed
the following best practice steps (which incorporates procurement requirements and suggested best practices) to assist
UGLGs with the professional procurement process.
Reminder: If an UGLG wants to use/hire their local COG, to handle their grant application preparation and/or grant
administration if awarded a CDBG-I grant; professional procurement is not required for those services. However, there
must be a contract between the COG and UGLG with appropriate provisions, clauses, etc.
Step 1: Establish or Appoint a Local Selection Review Committee Each UGLG will establish a Selection Review Committee to determine the scope of work, evaluation criteria, and to
review and evaluate submissions for services. This committee can consist of either: 1) the entire governing body; 2) a
subset of the governing body, as appointed by the Mayor/Chairperson; or 3) a combination of governing body and
town/county staff. The committee should have at least three members.
Reminder: Committee members may not have any potential conflicts of interest with any of the individuals, firms, or
agencies under review (i.e., family relationships, close friendships, business dealings, etc.) and no person who might
potentially receive benefits from the CDBG-I assisted activities may participate in the selection, award, or administration
of a contract supported by CDBG-I funding if he or she has a real or apparent conflict of interest.
Step 2: Determine the Scope of Work Once the committee is selected and notified of their participation, the committee must determine the scope of the work
for the potential contractor. Is the project a rehabilitation of old water or sewer lines? Is the project the rehabilitation
of a water or wastewater treatment plant? Is the project the extension of a water or sewer line to unserved homes?
Refer to the communities’ Capital Improvement Plan or Asset Management Plan to determine most needed projects.
Step 3: Determine the Selection Criteria to Evaluate Respondents Once the scope of work is identified, the committee must determine the criteria they will use to evaluate the
submissions. These selection criteria must also be conveyed in the RFP/RFQ to inform potential respondents on how
they will be evaluated against other submissions.
The sample RFP/RFQ provided in this guidance provide examples of criteria; however, these are only guidance examples.
Each committee can develop their own based on their needs, as long as the criteria does not violate the state, federal or
local regulations for procurement.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
It is during this step that UGLGs will develop their written method for conducting technical evaluations of the
submissions received and for selecting contract recipients. This written method should include the rating sheet that will
be used one RFP/RFQ submissions are received. There is an example of a rate sheet in this guidance document.
Reminder: When developing an RFQ for professional engineering and related services, cost cannot be an evaluation
criterion.
Step 4: Develop the Request for Proposals / Qualifications (RFP/RFQ) The committee will develop the final RFP/RFQ using the identified scope of work and evaluation criteria and rating scale.
In addition, the RFP/RFQ must include basic project information, submission deadline and instructions for submission,
and contact information for a local point of contact. The committee should review the enclosed RFP/RFQ samples to
layout their RFP/RFQ to ensure all important components are included.
Reminder: When developing the RFP/RFQ document, it is important to make sure the committee is asking for the
appropriate information to evaluate the submission. For example, if one of the evaluation criterion is experience with the
CDBG-I program, the RFP/RFQ should ask respondents to include a description of their previous work with the CDBG-I
program.
Step 5: Advertise the RFP/RFQ Now it is time to advertise the developed RFP/RFQ. UGLGs can either publish the entire RFP/RFQ or a short form
version to save on publication costs. Samples of these types are available in this guidance for your reference.
At a minimum, UGLGs must publish their RFP/RFQ at least once in a newspaper of general circulation (either the
community, or a regional newspaper that is available locally). An Affidavit of Publication will be needed for the notice.
As this guidance document stated, the time between publication and submission deadline should be at least 15 days to
allow adequate time for firms/consultants to prepare their response. UGLGs should provide additional time between
publication date and deadline if they use the short form version – this will allow time to request/receive the full
RFP/RFQ. We suggest an additional five days if the short form is used, for a total of twenty (20) days.
UGLGs must also post the RFP/RFQ on the State’s IPS or other vendor sites, post the notice throughout their community,
and send the RFP/RFQ directly to firms/consultants that may be interested in responding. As this guidance mentioned,
if firms/consultants are directly solicited, M/WBE and Section 3 businesses must be included on the list of firms to
receive the direct solicitation.
Step 6: Review and Rate Submissions After the submittal deadline, and if the UGLG has received an adequate number of submissions from qualified sources
(three for engineering firms; two for grant administration firms), the committee will come back to together and use their
written method and rate sheet created in Step 3 to review and rate the submissions. Each committee member will
review and score the submissions; all scores can then be averaged to determine the highest scoring submission.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
The highest scoring firm/consultant must be checked against the debarment and suspension lists (provided in this
guidance document under “eligibility requirements” on page 7) to ensure they are eligible to work on a federally-
assisted project prior to being forwarded to the governing body for their official approval.
In cases where an UGLG receives an inadequate number of submissions, the UGLG must repeat their publication
process. In this republication process, the UGLG must broaden their reach by putting the RFP/RFQ in a larger newspaper
near the project area and increase direct solicitations to increase interest and responses. If after the second solicitation
attempt response is still inadequate, the committee can review and select the use of the single submission received.
However, after checking the contractor’s eligibility and prior to sending the selected sole submission to the governing
board for official approval, the UGLG must send a letter and documentation of their procurement efforts to the CDBG-I
Program Supervisor to request the use of sole-source procurement.
Step 7: Approve the Selected Contractor and Award Contract The committee should present the recommendation to the governing board for final approval. The local governing body
has the final authority to award the contract to the selected firm/consultant.
A contract for services should be prepared between the town/county and the selected firm/consultant. The
council/board of commissioners may take separate action to approve the contract for services – especially for
engineering contracts once compensation has been negotiated.
Step 8: Record Keeping UGLGs must maintain thorough records on the entire procurement process, including copies of all contracts. The
procurement process documentation must be available to the public or anyone who wants to review. This
guidance document provides a sample checklist of what the procurement file should contain.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Examples of Soliciting and Awarding Contracts to Section 3 Businesses
(provided by HUD)
1) Utilizing procurement procedures for section 3 business concerns similar to those provided in 24 CFR part 905 for
business concerns owned by Native Americans.
2) In determining the responsibility of potential contractors, consider their record of section 3 compliance as evidenced
by past actions and their current plans for the pending contract.
3) Contacting business assistance agencies, minority contractors’ associations and community organizations to inform
them of contracting opportunities and requesting their assistance in identifying section 3 businesses which may
solicit bids or proposals for contracts for work in connection with section 3 covered assistance.
4) Advertising contracting opportunities by posting notices, which provide general information about the work to be
contracted and where to obtain additional information, in the common areas or other prominent areas of the
housing development or developments owned and managed by the HA (housing authority).
5) Providing written notice to all known section 3 business concerns of the contracting opportunities. This notice
should be in sufficient time to allow the section 3 business concerns to respond to the bid invitations or request for
proposals.
6) Following up with section 3 business concerns that have expressed interest in the contracting opportunities by
contacting them to provide additional information on the contracting opportunities.
7) Coordinating pre-bid meetings at which section 3 business concerns could be informed of upcoming contracting and
subcontracting opportunities.
8) Carrying out workshops on contracting procedures and specific contract opportunities in a timely manner so that
section 3 business concerns can take advantage of upcoming contracting opportunities, with such information being
made available in languages other than English where appropriate.
9) Advising section 3 business concerns as to where they may seek assistance to overcome limitations such as inability
to obtain bonding, lines of credit, financing, or insurance.
10) Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways
to facilitate the participation of section 3 business concerns.
11) Where appropriate, breaking out contract work items into economically feasible units to facilitate participation by
section 3 business concerns.
12) Contacting agencies administering HUD Grant Youthbuild programs, and notifying these agencies of the contracting
opportunities.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
13) Advertising the contracting opportunities through trade association papers and newsletters, and through the local
media, such as community television networks, newspapers of general circulation, and radio advertising.
14) Developing a list of eligible section 3 business concerns.
15) Establishing or sponsoring programs designed to assist residents of public or Indian housing in the creation and
development of resident-owned businesses.
16) Establishing numerical goals (number of awards and dollar amount of contracts) for award of contracts to section 3
business concerns.
17) Supporting businesses which provide economic opportunities to low income persons by linking them to the support
services available through the Small Business Administration (SBA), the Department of Commerce and comparable
agencies at the State and local levels.
18) Encouraging financial institutions, in carrying out their responsibilities under the Community Reinvestment Act, to
provide no or low interest loans for providing working capital and other financial business needs.
19) Actively supporting joint ventures with section 3 business concerns.
20) Actively supporting the development or maintenance of business incubators which assist Section 3 business
concerns.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Sample RFP (Request for Proposals) for Professional Administrative Services
The Town/City/County of is requesting proposals for professional administrative services to assist the
Town/City/County of in preparing a FY20__/20___ North Carolina Community Development Block Grant – Infrastructure
(NC CDBG-I) Program project application to be considered for the September 20___ round of grant funds; in addition to
administering and implementing the project if application successful in being funded. The NC CDBG-I application is for
[provide a brief description of potential project]
Scope of Services Required: [List of desired tasks community wants completed]
1. Prepare FY20 xx/ 20xx NC CDBG-I application
a. Conduct income surveys.
b. Gather, write and assemble application.
c. Assist with public hearing.
2. Administer and Implement funded grant:
a. Prepare Environmental Review Records and Release of Funds and other Funding Conditions
b. Prepare and help assist with implementation of Compliance Plans.
c. Prepare Request for Payments.
d. Assist with ensuring community is following financial requirements of program.
e. Assist with project files in local government’s office.
f. Assist community in conducting all necessary public hearings / meetings.
g. Assist with complying with regulations property acquisitions / easements, if necessary.
h. Assist project engineer in preparation of bid documents and supervisor bidding process to insure
consistently with state/federal regulations.
i. Prepare and/or assist in preparing construction contracts to comply with state and federal regulations.
j. Obtain debarment clearance for all contractors.
k. Conduct required labor standard requirements – weekly payroll checks, on-site interviews, etc.
l. Attend and assist community during the state’s monitoring visit(s).
m. Assist community on any response(s) to monitoring findings/concerns.
n. Prepare all necessary reports and assist with requests for information.
o. Attend all necessary program training for program.
p. If necessary, verify income information for new connections.
The following is intended only as an example of a format that may be used to issue an RFP for professional
administrative services. UGLGs should consider the contents of their RFPs very carefully before they are issued.
Local officials should exercise care in drafting the scope of services and factors to be used in evaluating proposals to
assure that they are both complete and appropriate for your community and project. There will to be two separate
contracts for professional administrative services are required: One contract for grant application preparation and a
second for grant administration if grant is funded.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
q. Prepare grant close-out documents.
Contracting for these two scopes of work (#1 and #2 above) shall occur separately and costs associated with each will be
clearly defined. Contract executed for grant administration and implementation shall be contingent upon receiving a
CDBG-I award for the proposed project.
Submission Requirements:
Information provided to the Town/City/County of shall include at a minimum: [listed below are EXAMPLES of
evaluation factors]:
1. Experience with similar CDBG-I project applications; proposal must identify the primary individual performing the
functions; experience with HUD requirements; and at least three references;
2. Qualifications, knowledge, and technical expertise with writing CDBG—I applications;
3. Capacity for Performance to perform required tasks in a timely manner according to the Town/City/County’s and
application deadlines, given current workload and staff;
4. Separate Cost of Services ( grant application preparation, grant administration, etc.)
5. Documentation of Compliance with state and federal debarment/eligibility requirements.
Submission Evaluation Criteria:
Respondents will be evaluated according to the following factors:
[Identify the evaluation criteria above that shall receive priority weighting in the final selection, below are EXAMPLES].
A. Consultant Qualifications and Experience with CDBG-I applications (including reference checks) % or points
B. Availability and Capacity of the Consultant % or points
C. Cost of Services % or points
The above information should be submitted no later than (DATE), (TIME), (named location & address). For more
information, contact town/city clerk/county clerk at (PHONE NUMBER).
Note: The evaluation factors listed below are only examples (minus the cost of services). Local officials should
include any factors which they believe are appropriate to the work tasks to be involved, with relative weighting
for each according to their priority. HUD regulations require that the RFP “identify all evaluation factors and their
relative importance.” Section 3 applies if the contract is over $100,000 for non-construction contracts. If Section 3
businesses will be given a preference, this must be stated in the evaluation factors.
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State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)
Upon completion of the review, the Committee will make its recommendation to the Town/City Council/County
Commission for approval.
The Town/City/County of (XXXX) is an Equal Opportunity Employer and invites the submission of proposals from small
and minority and women-owned firms, historically underutilized businesses, and certified/registered Section 3
businesses concerns. (Section 3 applies if the contract is over $100,000 for non-construction contracts)
This information is available in Spanish or any other language upon request. Please contact (Insert Name) at (Insert
Phone Number) or at (Insert physical location) for accommodations for this request.
“Esta información está disponible en español o en cualquier otro idioma bajo petición. Por favor, póngase en contacto
con (Insert Name) al (Insert Phone Number) o en (Insert physical location) de alojamiento para esta solicitud.