(a) Purchases and contracts for materials and services will be limited to those items needed for project operation. Such purchases and contracts are also subject to budgetary limitations, except where the expenditure is necessary to protect life or property from imminent danger.

(b) The authority shall take affirmative steps to solicit bids from minority- and women-owned business enterprises, as defined by the division pursuant to article IX of Executive Order No. 21, dated August 3, 1983, and shall make certain that such bids receive full and fair consideration.

(c) Purchases and contracts will be awarded on the basis of competitive bidding to the fullest extent possible. Section 151 of the Public Housing Law, governing contracts and purchases in excess of $10,000, requires sealed bids in compliance with public advertisement not less than 20 days before the date set for the receipt of bids. The authority should utilize competitive bidding for all its purchases or contracts unless it is obviously impossible or impracticable to do so, as in the case of gas, electric and telephone services; replacement parts for equipment whose manufacturer is the only source of supply; local area purchases (usually not in excess of $25 per month), where need is immediate and work of mechanics would be delayed; and emergency purchases where there is no time to obtain competitive bidding.

(d) When division approval is required for purchases or contracts as listed under section 1628-3.1 of this Part, a preliminary submission of the proposed specifications of the items to be purchased or work to be contracted will be made to the Bureau of Management. Such preliminary submission is not required, however, if the division's standard contracts or specifications prepared by the division are to be used. Upon approval of the preliminary submission, bids will be solicited. A copy of the lowest bid, a tabulation of all bids received, a listing of all bidders solicited and the authority's recommendation, will be forwarded to the Bureau of Management for review and approval prior to award. If public advertisement is required, a copy of such advertisement showing date of publication will be included.

(e) The authority's counsel will indicate on all contracts that he has reviewed the bids and contract documents, and approves them as to form, including necessary acknowledgments.

(f) Recommendation of award will normally be for supplier or contractor who submits the lowest bid for the material or work as specified. Recommendation for award to other than the lowest bidder shall be in accordance with section 151 of the Public Housing Law.

(g) Upon approval by the division, the authority will award the purchase or contract, with an original and a conformed copy of the executed contract being forwarded to the division for its files. Prior to permitting any supplier or contractor to perform, the authority will require the contractor to submit satisfactory evidence of any insurance coverages and performances and payment bonds that may be required by the contract or purchase documents.