US. DEPARTMENT OF HOUSENG AND URBAN DEVELOPMENT
WASHINGTON, DC 204103000

 

OFFICE OF COMMUNITY PLANNING
AND DEVELOPMENT

Major General James Hoyer AUL ?i i 2mg
Of?ce of The Adjutant General

West Virginia National Guard

1703 Coonskin Drive

Charleston, WV 25311

Dear Major General Hoyer:

This letter provides additional guidance with respect to West Virginia?s efforts to recover
from the 2016 ?oods. The State has identi?ed several procurement issues associated with both the
project management contract executed by the State to assist in the administration of Community
Development Block Grant disaster recovery funds and several contracts with housing
contractors for housing rehabilitation and reconstruction work funded through the State?s 
DR grant.

The requirements for the use of these funds are set forth in the Federal Register Notice
published on November 21, 201.6. The State is required to follow its own procurement policies and
procedures in the use of funds and is also subject to the State CDBG program
requirements of 24 CFR In response to the State?s request for guidance, the
Department has considered the statutory requirement for pro?cient procurement procedures, the
importance of minimizing harm to flood~affected homeowners and the need to limit the impact of
the identi?ed de?ciencies on future funded activities.

The State has indicated verbally that it may remedy the identi?ed de?ciencies by exercising
a provision of State law that authorizes the Governor to waive State procurement requirements. In
evaluating use of this provision for the project management contract, HUD advises the State to
narrowly limit the application of a waiver to prevent having to pay for the same goods and services
under both the existing contract and a new contract. Further, if the State opts to apply this provision
of State law to this contract, HUD advises the State to concurrently initiate a new procurement for
project management services, if needed, or to increase its own internal capacity to perform this
work.

Regarding the housing contracts, the Department similarly advises the State to expedite new
competitive procurements of these contracts or to take steps to designate subrecipients to carry out
housing activities. Meanwhile, to the extent feasible under a waiver authorized by State law, the
Department advises the State to continue to use its existing housing contracts to complete work in
cases where existing housing contractors have commenced work on the rehabilitation, construction
or reconstruction of a home, or where a replacement unit for a homeowner has been ordered.

By narrowly tailoring any waiver allowed under State law, the State will be better positioned

to demonstrate that overall, the State?s procedures operate in a manner that provides for full and
open competition.

espanoihudgov

Ix.)

The Department?s priorities are to help expedite the provision of CDBG-DR assistance to
families and communities that were impacted by the 2016 ?ooding while also ensuring that Federal
?nancial resources are used in a manner that promotes public con?dence. Please contact Frank
McNally, Deputy Director, Disaster Recovery and Special Issues Division if you have further
questions or concerns at (202) 402-7100. -

Sincerely,

    

Deputy Assistant Secretary
for Grant Programs