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<br />PROCUREMENT PLANNING <br /> <br />Planning is essential to managing the procurement function properly. Hence, the LHA will <br />periodically review its record of prior purchases, as well as future needs, to: find patterns of <br />procurement actions that could be performed more efficiently or economically; maximize <br />competition and competitive pricing among contracts and decrease the LHA's procurement costs; <br />reduce LHA administrative costs; ensure that supplies and services are obtained without any need <br />for re-procurement, e.g., resolving bid protests; and minimize errors that occur when there is <br />inadequate lead time. Consideration should be given to storage, security, and handling <br />requirements when planning the most appropriate purchasing actions. . <br /> <br />PURCHASING METHODS <br /> <br />Small Purchase Procedure$ <br /> <br />For any amounts not exceeding $25,000, the LHA may use small purchase procedures. For <br />purchases from $5,000 to $14,999 a minimum of three telephone quotes must be obtained. For <br />purchases from $15,000 to $24,999 a minimum of three written quotes must be obtained. For <br />purchases less than $5,000, also known as Micro Purchases, only one quote is required provided. <br />the quote is required provided the quote is considered reasonable. To the greatest extent feasible, <br />and to promote competition, small purchases should be distributed among qualified sources. <br />A ward shall be made to the qualified vendor that provides the best value to the LHA. If award is <br />to be made for reasons other than lowest price, documentation shall be provided in the contract <br />file. The LHA shall not break .down requirements aggregating more than the small purchase <br />threshold into several purchases that are less than the applicable threshold merely to: (1) permit <br />use of the small purchase procedures or (2) avoid any requirements that applies to purchases that <br />exceed the Micro Purchase threshold. <br /> <br />Sealed Bids <br /> <br />Sealed bidding shall be used for all contraCts that exceed the small purchase threshold and that <br />are not competitive proposals or non-competitive proposals, as these terms are defined in this <br />document. Under sealed bids, the PHA publicly solicits bids and awards a firm fixed-price <br />contract (lump sum or unit price) to the responsible bidder whose bid, conforming with all the <br />material terms and conditions of the IFB, is the lowest in price. Sealed bidding is the preferred <br />method for procuring construction, supply, and non-complex service contracts that are expected <br />to exceed $25,000. <br /> <br />A. Conditions for Using Sealed Bids. LHA shall use the sealed bid method if the following <br />conditions are present: a complete, adequate, and realistic statement of work, specification, <br />or purchase description is available; two or more responsible bidders are willing and able to <br />compete effectively for the work; the contract can be awarded based on a firm fixed price; <br />and the selection of the successful bidder can be made principally on the lowest price. <br /> <br />9 <br />