Grant Administration: Section 7.1 CDBG Procurement Requirements

All procurements funded in whole or in part with CDBG funds must comply with the applicable federal requirements found in 2 CFR Part 200. The goal in using these procurement procedures is to achieve maximum open and free competition. 2 CFR Part 200.318

Each grantee (and sub-recipient) shall adopt and abide by the CDBG Procurement requirements set forth in this chapter, which shall apply only to procurements funded with CDBG dollars, as authorized in 2 CFR 200.318. The CDBG Procurement requirements include:

  • A code of conduct to govern the performance of the grantee’s officers, employees or agents in contracting with CDBG funds and to ensure adherence to the conflict of interest and disclosure requirements (outlined in Chapter 4: Grantee Requirements); and
  • A requirement that positive efforts be made to use small, minority, female, and Section 3 businesses; and
  • A requirement that contracts be awarded, to the greatest extent feasible, to businesses that provide economic opportunities for low and very low-income persons residing in the project area; and
  • A requirement that cost estimate has been determined in advance of contract bidding, per 2 CFR 200.323(a). See Section 8.6 Cost Reasonableness below for more information on this process. 2 CFR 200.323(a)
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