Procuring Relocation Services: Competition and Conflicts of Interest

Housing authorities usually hire outside firms to plan and manage relocation. When the contract is paid with federal funds, it is subject to federal procurement standards, including the Uniform Guidance at 2 CFR Part 200 and HUD's procurement requirements for PHAs, along with state and local law. Getting procurement right protects the agency and the project schedule.

Competition

Federal standards require procurements to be conducted in a manner providing full and open competition. Relocation consulting is usually procured as professional services through a request for proposals, evaluated on qualifications, approach and price. Agencies should document their evaluation and the basis for award.

Conflicts of interest

Under 2 CFR 200.318, the agency's written standards of conduct must bar any employee, officer or agent from participating in the selection, award or administration of a contract if they have a real or apparent conflict of interest. That includes a financial interest in, or a tangible personal benefit from, a firm being considered. The standards also prohibit soliciting or accepting gifts or gratuities from contractors, except for unsolicited items of nominal value where agency policy allows.

Agencies must also address organizational conflicts, such as a consultant that helps write a scope of work and then bids on it, or an advisor with a financial relationship to a firm it recommends.

Questions to ask

• Does anyone advising the agency on selection have a financial relationship with a proposer, including referral or revenue-sharing arrangements?
• Has every team member disclosed affiliations in writing?
• Is the relocation firm's compensation structured so it has no incentive to steer residents toward one outcome, such as not returning?
• Are subcontracting and teaming arrangements disclosed in the proposal?

Accountability does not transfer

HUD's RAD relocation Notice states that PHAs and Project Owners remain accountable for relocation and civil rights compliance even when the work is performed by consultants and contractors. Strong procurement and contract oversight is how agencies manage that responsibility.

Contract provisions

Federally funded contracts must include required federal provisions. HUD publishes standard contract clauses for PHAs. Spell out clear deliverables, such as the relocation plan, notices, resident log and reports, along with performance standards tied to resident outcomes and compliance.