To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Report Title: ADOPT AMENDMENTS TO THE PROCUREMENT POLICY TO ALIGN WITH UPDATED FEDERAL AND STATE REGULATIONS AND BEST PRACTICES
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT the revised Procurement Policy for the Housing Authority of the County of Contra Costa (HACCC) to align with updated federal and state procurement regulations, incorporate the Buy America Preference, clarify roles and responsibilities, and modernize internal practices for efficiency, accountability, and equity.
BACKGROUND:
HACCC last adopted a full revision of its Procurement Policy in 2015. Since that time, federal regulations—including 2 CFR Part 200 (Uniform Guidance)—have been updated, and HUD Procurement Handbook 7460.8 REV 2 has provided expanded interpretation of those rules. Additionally, California procurement statutes and public contracting standards have evolved, particularly around conflict of interest, small business inclusion, and public works contracting.
This amended Procurement Policy reflects a comprehensive update to incorporate these regulatory changes and improve clarity, accessibility, and internal consistency. These changes are intended to enhance oversight, improve vendor transparency, and streamline purchasing processes in line with national best practices.
This update also incorporates changes approved by the Board in May 2025 to amend the HACCC Procurement Policy by increasing the purchase thresholds as follows: petty cash from $50 to $250, micro purchases from $3,000 to $10,000, and small purchases from $150,000 to $200,000.
The following key updates have been made:
- Updated all regulatory citations to reflect current law.
- Clarified applicability of the Procurement Policy to mixed-funding projects and emphasized consistent application of HUD regulations when federal funds are used.
- Expanded conflict of interest provisions and included explicit reference to California’s Political Reform Act and HUD’s conflict standards.
- Added restrictions on post-employment procurement involvement for former employees.
- Defined sanctions and waiver processes for violations of ethical standards.
- Strengthened internal oversight requirements for procurement planning, solicitation methods, and evaluation protocols.
- Outlined role-specific procurement authorities, including delegation from the Executive Director to Contracting Officers.
- Required public notice for procurements above the small purchase threshold and standardized practices for cancellations and bid protests.
- Strengthened documentation expectations for Small Purchases, including informal quotes and price comparisons.
- Encouraged cooperative purchasing and use of prequalified vendor lists that promote open and inclusive competition.
- Required prior HUD approval before initiating litigation, appealing judgments, or entering settlements involving HUD-assisted activities.
- Clarified requirements for cost reasonableness and Independent Cost Estimates (ICE) for each procurement method.
- Included explicit rules for credit card usage, purchase order reconciliation, and procurement file documentation.
- Added Bonding Requirements for construction contracts over $200,000.
- Incorporated performance evaluation protocols for vendors and guidance for using contract extensions and options.
- Clarified acceptable contract types and prohibited use of cost-plus-percentage-of-cost arrangements.
- Required clear contract clauses for pricing, options, and performance monitoring.
- Clarified when noncompetitive proposals (sole-source) may be used and added justification procedures.
- Integrated Buy America Preference (BAP) requirements in accordance with the Build America, Buy America Act.
- Reaffirmed commitment to small, minority-owned, and women-owned businesses, including compliance with Section 3 and Title VI.
The revised Procurement Policy has been reviewed internally and aligns with both federal guidance and industry standards. The proposed changes are attached to this memo.
FISCAL IMPACT:
No direct financial impact. The revised Procurement Policy is designed to ensure compliance with all applicable laws and regulations, mitigate risk, and enhance operational efficiency.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to adopt the revised Procurement Policy may result in non-compliance with federal and state procurement requirements, increased audit risk, and potential disallowance of expenses or grant funds. HACCC would also be out of step with current best practices for public sector procurement.