PHAs must use different procurement methods depending on the estimated dollar value of the goods or services being purchased. For purchases below the micro-purchase threshold (currently $10,000), PHAs may procure directly without soliciting competitive quotes, provided the price is considered fair and reasonable.
For purchases between $10,000 and $250,000 (the simplified acquisition threshold), PHAs must obtain a minimum of three written price quotes from qualified vendors. For purchases exceeding $250,000, PHAs must conduct formal competitive procurement using either an Invitation for Bids (IFB) for construction and straightforward goods/services where price is the primary award factor, or a Request for Proposals (RFP) for professional services, technology solutions, or complex scopes where technical merit, qualifications, and approach are evaluated alongside price.
Sole source procurement — awarding a contract without competition — is only permitted under very limited circumstances and requires prior written justification and, in many cases, HUD approval.