Petty cash may be used for small, incidental expenses when use of standard purchasing methods is not practical, such as minor office supplies or postage. Individual petty cash purchases must be under $200 and must be supported by appropriate documentation, including a receipt, purchaser identification, and the purpose of the purchase. Petty cash funds are limited to authorized personnel and are subject to regular reconciliation and review to ensure proper use and accountability.

Micro purchases may be used for goods, supplies, services, and other eligible purchases totaling $15,000 or less. Competitive quotes are not required; however, the price must be considered reasonable and documented. Whenever practicable, purchases should be distributed among qualified vendors to provide equitable opportunities to do business with HACP.

For purchases between $15,001 and $50,000, HACP uses small purchase procedures and solicits at least three written quotes from qualified vendors. HACP encourages participation from minority- and women-owned businesses, Section 3 businesses, and local and small businesses when feasible. Purchases may not be divided into smaller amounts for the purpose of avoiding applicable procurement requirements.

For purchases between $50,001 and $250,000, HACP uses an informal Request for Quote (RFQ) process for construction, professional services, supplies, and other applicable purchases. The RFQ includes a description or scope of the goods or services being requested, applicable requirements, and instructions for submitting a written quote.

HACP solicits competition from qualified vendors and evaluates the quotes received to determine price reasonableness and compliance with the requirements of the RFQ. Procurement records include the solicitation and scope of work, quotes received and evaluation summary, award rationale, executed purchase order or contract, and applicable compliance documentation.

For purchases over $250,000, HACP uses a formal sealed bid process through an Invitation for Bid (IFB) when the scope of work, specifications, or purchase requirements can be clearly defined and award can be made primarily on price. This method is commonly used for construction, supplies, and non-complex services.

IFBs are publicly advertised to provide adequate public notice and promote full and open competition. The solicitation provides the scope of work or specifications, submission requirements, applicable terms and conditions, and the date, time, and location established for receipt of sealed bids. HACP generally provides a minimum of 30 calendar days for preparation and submission of formal bids.

Bids are evaluated for compliance with the material requirements of the solicitation. Award is made to the responsible bidder submitting the lowest responsive bid that conforms to the terms and conditions of the IFB.

Depending on the project and funding source, additional requirements may apply, including Davis-Bacon prevailing wages, bonding, insurance, licensing, Section 3, and other federal or HUD requirements. Vendors are responsible for reviewing the complete solicitation and all issued addenda before submitting a bid.

A Request for Proposal (RFP) may be used when factors other than price are important in selecting the most advantageous proposal for HACP. Proposals are evaluated using criteria established in the solicitation, which may include factors such as technical expertise, experience, proposed staffing, approach, and price. This method is commonly used for professional services and other procurements where selection based solely on the lowest price is not appropriate.

For federally funded construction work exceeding $2,000, Davis-Bacon prevailing wage and related labor compliance requirements may apply regardless of the procurement threshold.