Use sealed bids. For construction contracts, FEMA prefers sealed bids. After a public invitation and solicitation to bid, the applicant should award a firm-fixed-price contract, in writing, to the lowest responsible offeror. Applicants may also use the sealed bid method for non-construction contracts if appropriate.

When the sealed bid method is not appropriate, the applicant may use competitive proposals to award a fixed-price contract or a cost-reimbursement contract. With competitive proposals, awards are made in accordance with evaluation and award criteria set forth in the solicitation. The solicitation must set out all evaluation factors and their relative importance; solicit proposals from an adequate number of qualified sources; and have a method to conduct technical evaluations and select awardees. The competitive proposals method allows

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applicants to make their decision on more factors than price alone. When an applicant procures professional architecture or engineering services, this method permits eliminating price as a selection factor entirely.11

Keep detailed records. Keep detailed records of any decision points in the procurement process, and document the rationale for the decision. A contemporary accounting of the decision will help the applicant in the event of an appeal or challenge at a later time.

Team up. To foster greater economy and efficiency, applicants are encouraged to enter into State and local intergovernmental agreements for procurement or use of common goods and services.

Lease vs. purchase. Applicants should compare the costs associated with leasing and those associated with purchasing over an applicable time frame to determine which option provides the greatest cost savings.

Use value engineering. Put value engineering clauses in sizeable construction contracts. Value engineering systematically reviews contract items and tasks to ensure that the "essential function is provided at the overall lower cost.

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