Public Housing Authorities are required to follow federal procurement standards established under 2 CFR Part 200 (Uniform Guidance) and HUD regulations at 24 CFR Part 85. These standards apply to all purchases made with federal funds, including HUD grants and operating subsidies. PHAs must maintain a written procurement policy that is consistent with these federal requirements and must apply it consistently across all departments. The core principles of PHA procurement are: full and open competition, transparency, cost-effectiveness, and avoidance of conflicts of interest.
All staff involved in procurement activities must disclose any real or apparent conflict of interest and are prohibited from soliciting or accepting gifts, gratuities, or favors from vendors or contractors. PHAs are also required to maintain procurement records for a minimum of three years from the date of final payment, including all solicitation documents, bids received, evaluation notes, and award justifications.