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HUD-OIG reviewed the Cheyenne Housing Authority's (Authority) administration and management contract with Housing Operations and Management, Incorporated (contractor), to determine whether the Authority awarded the contract in accordance with federal procurement requirements.

The Authority did not follow federal procurement requirements and its own procurement policy when it awarded its administration and management contract to the contractor. Members of the Authority's board of commissioners (board) did not fully understand their duties and responsibilities related to the procurement process for the award of this contract. Without following federal procurement requirements, the Authority has no assurance that it received the best price for the services provided under the terms of the contract.

We recommend that HUD ensure that the board takes all actions necessary to provide its members with a full understanding of their duties and responsibilities related to the federal procurement process and require the Authority to amend its existing administration and management contract to include all required contract provisions.