Procurement Procedures for FEMA Public Assistance Projects
Summary Prepared by Chittenden Regional Commission
for Convenience of Municipal Officials
September, 13 2011

Towns must follow their established procurement policies when procuring goods or
services with FEMA Public Assistance funds as long as those policies adhere to all state and
local laws and federal standards.

Towns must comply with FEMA legal requirements. (See Attachment A, Federal
Procurement Requirements for Use of FEMA Funds.)
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Contracts must be in writing. If verbal contracts were made immediately following the
storm they must be transferred to written contracts ASAP.
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The town must develop a scope of work (SOW) for each project so the town and the
contractor clearly understand what is to be done to repair the damaged facility. It should
contain a detailed description of the work to be performed, references to all applicable
standards, specifications and policies, reporting requirements and expected deliverables/work
tasks. The document prepared should be definitive enough to ensure that the proposing entity
clearly understands their obligation while ensuring the town will achieve its objectives.
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Types of Contracts:
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For Contracts Totaling $100,000 or less -- Small Purchase Procurement Procedures.
To satisfy the requirements for this procedure the town must solicit price quotations
and/or proposals from three or more sources that customarily offer the services. (See
Attachment B, Record of Procurement for Small Purchase Procurement.)
For Contracts Totaling over $100,000 – Competitive Bid. Bids are publicly solicited
and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible
bidder whose bid, conforming with all the material terms and conditions of the invitation
for bids, is the lowest in price. Competitive bid procedures are typically used for
construction contracts.
Typical competitive bid procedures:

The invitation for bids is publicly advertised and bids are solicited from an
adequate number of known suppliers, providing them sufficient time for
responding;
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The invitation for bids, which includes any specifications and pertinent
attachments, defines the items or services in order for the bidder to properly
respond;
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A firm fixed-price contract award is made in writing to the lowest responsive and
responsible bidder; and
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Any or all bids may be rejected if there is a sound documented reason.
Prepared by Chittenden Regional Commission September 13, 2011
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Note: For non-construction projects such as preliminary engineering or design,
consultant selection is based on the qualifications of the responding contractors
and not the lowest priced response.
Special Considerations – Non-competitive Proposals:

The item/service is only available from a single source;

There is an emergency requirement that will not permit a delay;

FEMA authorizes non-competitive proposals;

See Attachment C, Record of Procurement for Non-competitive Procurement.
Types of Contracts FEMA will reimburse:
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Lump Sum – The contractor is paid a set amount for a defined scope of work
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Unit Price – The final price of the project is dependent on the quantities needed to carry
out the work. This contract is used with the types of materials are known, but the
quantities are not.
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Cost plus fixed fee – lump sum or unit price WITH a fixed contractor fee

Environmental Compliance – Emergency activities and projects that repair facilities to their
pre-disaster design are statutorily excluded from the National Environmental Policy review
process. If the damaged facility is proposed to be upgraded or improved or if mitigation is
being added, FEMA must conduct and document the NEPA review.

If work is required to be performed in or near a stream contact the Vermont Agency of
Natural Resources Stream Alteration Engineer.

Property eligible for listing on the National Register of Historic Places requires special
consideration (see FEMA Historic Review Assessment for Determining Adverse Effect
form).

Contact FEMA Public Assistance Coordinator for questions.

Contact your local Regional Planning Commission for assistance.
Prepared by Chittenden Regional Commission September 13, 2011
Attachment A
Federal Procurement Requirement for use of FEMA funds
Summary of 44 CFR 13.36
Towns will use their own procurement procedures which reflect applicable State and local laws
and regulations, provided that the procurements conform to applicable Federal law and the
standards identified below.
Towns will maintain a contract administration system which ensures that contractors perform in
accordance with the terms, conditions, and specifications of their contracts or purchase orders.
Towns will maintain a written code of standards of conduct governing the performance of their
employees engaged in the award and administration of contracts (see attached sample). No
employee or agent of the town shall participate in selection, or in the award or administration of
a contract supported by Federal funds if a conflict of interest, real or apparent, would be
involved. Such a conflict would arise when the employee or agent, any member of his or her
immediate family, his or her partner, or an organization which employs, or is about to employ,
any of the above, has a financial or other interest in the firm selected for award.
The town's officers, employees or agents will neither solicit nor accept gratuities, favors or
anything of monetary value from contractors, potential contractors, or parties to subagreements.
Town procedures will provide for a review of items purchased to avoid purchase of unnecessary
or duplicative items.
Towns will make awards only to responsible contractors possessing the ability to perform
successfully under the terms and conditions of a proposed contract. Consideration will be given
to such matters as contractor integrity, compliance with public policy, record of past
performance, and financial and technical resources.
Towns will maintain records sufficient to detail the history of a procurement. These records will
include the rationale for the method of procurement, selection of contract type, contractor
selection or rejection, and the basis for the contract price.
Towns alone will be responsible, in accordance with good administrative practice and sound
business judgment, for the settlement of all contractual and administrative issues arising out of
procurements. Federal agencies will not substitute their judgment for that of the town unless the
matter is primarily a Federal concern. Violations of law will be referred to the local, State, or
Federal authority having proper jurisdiction.
Towns will have protest procedures to handle and resolve disputes relating to their procurements
and shall in all instances disclose information regarding the protest to the awarding agency. A
protestor must exhaust all administrative remedies with the town before pursuing a protest with
the Federal agency.
Prepared by Chittenden Regional Commission September 13, 2011
All procurement transactions will be conducted in a manner providing full and open competition.
Towns will have written selection procedures for procurement transactions. These procedures
will ensure that all solicitations incorporate a clear and accurate description of the technical
requirements for the material, product, or service to be procured. The solicitations shall also
identify all requirements which the offerors must fulfill and all other factors to be used in
evaluating bids or proposals.
Towns will ensure that all prequalified lists of persons, firms, or products which are used in
acquiring goods and services are current and include enough qualified sources to ensure
maximum open and free competition.
Methods of procurement to be followed:

Procurement by small purchase procedures. Small purchase procedures are those
relatively simple and informal procurement methods for securing services, supplies, or
other property that do not cost more than the simplified acquisition threshold fixed
$100,000. If small purchase procedures are used, price or rate quotations shall be
obtained from an adequate number of qualified sources.

Procurement by formal advertising. Bids are publicly solicited and a firm-fixed-price
contract (lump sum or unit price) is awarded to the responsible bidder whose bid,
conforming with all the material terms and conditions of the invitation for bids, is the
lowest in price.

Procurement by non-competitive proposals is procurement through solicitation of a
proposal from only one source, or after solicitation of a number of sources, competition is
determined inadequate. Procurement by non-competitive proposals may be used only
when the award of a contract is infeasible under small purchase procedures, sealed bids
or competitive proposals and one of the following circumstances applies:
- The item is available only from a single source;
- The public exigency or emergency for the requirement will not permit a delay
resulting from competitive solicitation;
- The awarding agency authorizes non-competitive proposals; or
- After solicitation of a number of sources, competition is determined inadequate.
The town will take all necessary affirmative steps to assure that minority firms, women's
business enterprises, and labor surplus area firms are used when possible. Affirmative steps shall
include:
 Placing qualified small and minority businesses and women's business enterprises on
solicitation lists;
 Assuring that small and minority businesses, and women's business enterprises are
solicited whenever they are potential sources;
Prepared by Chittenden Regional Commission September 13, 2011
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Dividing total requirements, when economically feasible, into smaller tasks or quantities
to permit maximum participation by small and minority business, and women's business
enterprises;
Establishing delivery schedules, where the requirement permits, which encourage
participation by small and minority business, and women's business enterprises;
Using the services and assistance of the Small Business Administration, and the Minority
Business Development Agency of the Department of Commerce; and
Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps
listed above.
Towns must perform a cost or price analysis in connection with every procurement action
including contract modifications. The method and degree of analysis is dependent on the facts
surrounding the particular procurement situation, but as a starting point, grantees must make
independent estimates before receiving bids or proposals.
A cost analysis will be necessary when adequate price competition is lacking, and for sole source
procurements, including contract modifications or change orders, unless price resonableness can
be established on the basis of a catalog or market price of a commercial product sold in
substantial quantities to the general public or based on prices set by law or regulation.
Towns must comply with Equal Employment Opportunity requirements in the award of
contracts.
Prepared by Chittenden Regional Commission September 13, 2011
TOWN OF ___________________
CODE OF CONDUCT
1. Per 44 CFR 13.36, no employee, officer, or agent of the Town of ____________ shall
participate in the selection, or in the award or administration of a contract supported by
Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict
would arise when (1) the employee, officer, or agent, (2) any member of his or her immediate
family, (3) his or her partner, or (4) an organization which employs or is about to employee
any of (1) through (3) above, have a financial or other interest in the firm selected for the
award.
2. Officers, employees, and agents the Town of ___________ will neither solicit nor accept
gratuities, favors, or anything from contractors, potential contractors, or parties to subagreements.
Adopted this ??th day of ____________ 2011.
TOWN OF _______________________
BY_________________________________
Selectboard Chair
Prepared by Chittenden Regional Commission September 13, 2011
Town of _______________
RECORD OF PROCUREMENT
Small Purchase Procurement (for contracts up to $100,000)
Date: ______________________
Project Location: ______________________________________________________________
Description of good/service/construction:
Quotations Solicited (minimum of three required):
Selection
(Check
Box)
Vendor/Contractor Name
Contact
Phone Number
Date of
Quote
Amount
Quoted




Justification for inability to obtain minimum of three quotes, if applicable:
Justification for award made to other than the lowest responsive vendor/contractor:
_______________________________
Signature
_______________________________
Title
___________________
Date
Prepared by Chittenden Regional Commission September 13, 2011
Town of _______________
RECORD OF PROCUREMENT
Justification for Non-competitive Procurement
Date: ______________________
Project Location: ______________________________________________________________
Description of good/service/construction:
The Town of __________recommends that a Non-competitive contract be initiated with
_____________________________________________________________________________
In the amount of ________________________________________ for the following reasons:
Selection
(Check
Box)
Reason

The item/service is
only available from a
single source.

There is an emergency
requirement that will
not permit a delay.

FEMA authorizes noncompetitive proposals.
Please provide details to justify the procurement action
_______________________________
Signature
_______________________________
Title
___________________
Date
Prepared by Chittenden Regional Commission September 13, 2011
Prepared by Chittenden Regional Commission September 13, 2011