EXHIBIT 2 SAMPLE NEGOTIATION AUTHORITY AND SOLE-SOURCE DETERMINATION NEGOTIATION AUTHORITY AND SOLE-SOURCE DETERMINATION UNDER 41 USC 252(c) (10), 41 CFR 1-3.210(a) (1), and 41 CFR 101-47.304-9(a) (3) 1. The FINDINGS subdivision of the City of consists of single-family dwellings which were constructed under FHA supervision during and whose sales were primarily financed with FHA Section 235 insured mortgages. subdivision are presently vacant, acquired, assigned, foreclosed, or coming into the foreclosure process and vandalism is prevalent throughout the subdivision. 3. The neighborhood is unstable and blighted. 4. There is virtually no sales market for the units in and units there cannot presently be sold for even their original sales price; however, there appears to be a demand for single-family home rentals in that area and, therefore, a property manager is required. 5. Standard HUD Area Manager programs have not affected, nor corrected the deteriorating condition of the subdivision. The problems relating to the management, care and disposition of Secretary-owned properties in the subdivision area of the City of cannot be handled independently since they are integrally related to other socio-economic problems of that urban area and the resolution of these problems requires broad and comprehensive actions. Such actions as increased recreational facilities, increased fire and police protection, reformed tax assessment practices, improved public service and maintenance and more strict code enforcement, and referrals for requested counseling services are necessary to stabilize the area. These actions and services can only be performed by the City. 6. The City of has indicated that it is ready, willing and able to perform the services required in subdivision of that City to improve the quantity and quality of the social and economic conditions there, provided it is awarded an Area Manager Contract. DETERMINATION On the basis of the foregoing findings, I hereby determine that competition is impracticable and infeasible and that satisfactory terms for ultimate disposal of the subject properties may be obtained only by negotiation of contracts with the City of to manage and lease units for stabilization and for ultimate sales when conditions permit. Area Director Appendix B AREA MANAGEMENT CONTRACT The area management contract to be utilized in the Community Stabilization Program is an adaptation of the standard area management contract used by HUD with profit motivated organizations (see Exhibit 3). This agreement obligates the city to act as project manager of the subdivision until the properties are repaired and rehabilitated by HUD, at which time they become subject to the master lease. The changes and deletions which have been made in the area management contract result from the city being required to perform certain work itself, rather than subcontracting the work to third parties. The city's obligations are set forth in paragraphs 4 through 7 of the contract articles and in Schedule C, and the city's remuneration for performing these services is set forth in the Compensation Schedule. The obligations fall into three broad categories--initial, periodic, and when needed. The initial work to be performed by the city when the properties first become subject to the contract are set forth in articles 4 and 5; the continuing work to be performed on a monthly basis is described in articles 6 and 7; and the work which is to be performed on a "when needed" basis is contained in articles 5 and 7 and Schedule C of the contract. Form HUD-9700.2 deletes, supplements or modifies Form HUD-9700.1 as follows: TERMS AND CONDITIONS OF THE INVITATION FOR BIDS, Page i, Item 10, LATE BIDS AND MODIFICATIONS OR WITHDRAWALS is deleted in its entirety and in lieu thereof the following is inserted as Item 10. LATE BIDS, MODIFICATIONS OF BIDS, OR WITHDRAWAL OF BIDS (a) Any bid received at the office designated in the solicitation after the exact time specified for receipt will not be considered unless it is received before award is made and either: (1) It was sent by registered or certified mail not later than the fifth calendar day prior to the date specified for the receipt of bids (e.g., a bid submitted in response to a solicitation requiring receipt of bids by the 20th of the month must have been mailed by the 15th or earlier); or (2) It was sent by mail (or telegram if authorized) and it is determined by the Government that the late receipt was due solely to mishandling by the Government after receipt at the Government installation. (b) Any modification or withdrawal of a bid is subject to the same conditions as in (a) above. A bid may also be withdrawn in person by a bidder or his authorized representative, provided his identity is made known and he signs a receipt for the bid, but only if the withdrawal is made prior to the exact time set for receipt of bids. (c) The only acceptable evidence to establish: If (1) The date of mailing of a bid, modification, or withdrawal sent either by registered or certified mail is the U.S. Postal Service postmark on the wrapper or on the original receipt from the U.S. Postal Service. neither postmark shows a legible date, the bid, modification, or withdrawal shall be deemed to have been mailed late. (The term "postmark" means a printed, stamped, or otherwise placed impression that is readily identifiable without further action as having been supplied and affixed on the date of mailing by employees of the U.S. Postal Service.) (2) The time of receipt at the Government installation is the timedate stamp of such installation on the bid wrapper or other documentary evidence of receipt maintained by the installation. (d) Notwithstanding (a) and (b) of this provision, a late modification of an otherwise-successful bid which makes its terms more favorable to the Government will be considered at any time it is received and may be accepted. HUD-9700.2 |