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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 24, 2020 <br /> Action Agenda <br /> Item No. 8-d <br /> SUBJECT: Approval of Amendment to the Orange County Procurement and Disbursement <br /> Policy, Housing Rehabilitation Programs, Including Local and North Carolina <br /> Housing Finance Agency (NCHFA) Urgent Repair Activities <br /> DEPARTMENT: Department of Housing and <br /> Community Development <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1: Draft Orange County Emila Sutton, Director, Housing and <br /> Procurement and Disbursement Community Development, (919) 245-2490 <br /> Policy <br /> PURPOSE: To approve an amendment to the Orange County Procurement and Disbursement <br /> Policy for County- and State-funded urgent repair projects to allow the Department of Housing <br /> and Community Development to 1) select eligible contractors from the Approved Contractor <br /> Registry, on a rotating basis, to submit responsive and responsible bids for projects funded by <br /> the North Carolina Housing Finance Agency (NCHFA) Urgent Repair Program; 2) eliminate the <br /> 10% retaining fee held for 60 days after the completion of an urgent repair project; and 3) make <br /> the partial payment requirements consistent with the standard contract used for rehabilitation <br /> work. <br /> BACKGROUND: To apply for NCHFA Urgent Repair Program funds, the County must submit <br /> a procurement and disbursement policy approved by the local legislative body. The most recent <br /> policy, approved by the BOCC on September 3, 2019, as well as previous policies, required a <br /> traditional bid procedure in which a minimum of three (3) eligible contractors were invited to bid <br /> on a project and the lowest responsive and responsible bidder was selected for the contract. <br /> Urgent repair projects funded solely with County funds have more flexibility. A Rehabilitation <br /> Specialist may use the Approved Contractor Registry and request a bid from the contractor next <br /> on the list. If the contractor submits a bid that is responsive and responsible, that bid is <br /> automatically accepted. After the successful completion of the project, that contractor is rotated <br /> to the end of the list and the next contractor on the list becomes eligible to submit a bid for the <br /> next local project. <br /> This flexibility for County-funded projects was previously added because it has become <br /> increasingly difficult to solicit bids for relatively small urgent repair jobs. Considerable time and <br /> effort are expended to solicit bids for an urgent repair project, and often only one or no bids are <br /> received. This request is to provide a more flexible procurement process to urgent repair <br /> projects funded by NCHFA. A request was sent to NCHFA regarding this proposed amendment <br /> and NCHFA responded that "there are too many projects and not enough contractors right now, <br /> so any new procedures that meet the expectations for procurement and disbursement for a <br /> critical repair program like URP will surely be encouraged and considered." <br /> This amendment would also eliminate the 10% retaining fee (also known as the holdback) held <br /> for 60 days after the final inspection. This would pertain only to urgent repair projects, which by <br />