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MEMO
#1043: Second Bids - 07/31/03
Many
of you are aware that the provisions of HUD Mortgagee Letter
2003-05 go into effect today, June 20, 2003. We want to make
you aware of some changes in HUD's position regarding second
bids, to make sure we are all in full compliance. We will
schedule group conference calls with all our contractors over
the course of the next week to review these new provisions.
In the meantime, please review HUD's
comments clarifying the second bid requirements
outlined in ML 2003-05, and carefully read the following for
an explanation of the new procedures for second bids.
HUD's
main objective in making these changes is to ensure that second
bids are provided by a different contractor from the first
contractor, so that the bids are independent and competitive
and not "channeled" through the same source.
The single
most significant difference between today's requirements and
yesterday's is that today and until further notice, all HUD-required
second bids are to be sent directly to our clients, with copies
sent to Safeguard. All photos are still to be sent directly
to Safeguard for posting on our web site. We will still send
you the orders for second bids. Each second bid order we send
you will contain the client contact information (client name,
address, phone number, email address, fax number, and contact
person).
Each second
bid order will also specify what is to be bid: exterior debris,
interior health hazards, etc. Do not bid anything other than
what is requested. Your bid must be signed and on your company
letterhead, and must also include all your contact information
(contractor name, address, phone number, fax number, email
address, and Tax Payer ID number.) We will also provide our
client with your contact information in case they need to
contact you directly.
If the
M&M approves the second bid amount, our client may come
to us and ask us to complete the work for that second bid
amount even though we did not provide the bid. In those instances,
we will work with you to get that work done for the approved
amount.
For the
most part, it will be business as usual, with the exception
of your sending the second bids directly to our clients. We
will advise you of any further updates.
Thank
you for your continued cooperation. As always, if you have
any questions, don't hesitate to contact your regional coordinator.
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