Suzanne,

I am not sure how to interpret this response.  If we follow our states procurement code/policies, there is no such thing as a micro-purchases (#6 on the list) in our state’s requirements. And our state’s small purchase (#7) threshold in $18,000. So, if following the same policies and procedures as we use for the non-federal procurements, do these two items apply or not apply to a state owned institution that is subject to the state’s procurement code?

 

 

 

State higher education institutions’ sponsored projects offices should note that the procurement sections of the Uniform Guidance, located at 2 CFR 200.318, convey the following new aspects.  If you receive federal funding, then you will need to incorporate the following.  Procurement by States, states must follow the same policies and procedures it uses for its non-Federal procurements. Fed trumps state. Yes, you really do need to follow 200.317 Procurement by states

 

1.       Every non-federal entity receiving federal awards must have documented procurement procedures that reflect federal law, Uniform Guidance standards, and any state regulations.

2.       Entities should focus on the most economical solution during the procurement process, and must avoid using federal funds for the acquisition of unnecessary items. Organizations are encouraged to consider the use of shared services and intergovernmental agreements to foster greater economy and efficiency.

3.       Written conflict-of-interest policies are required. No employee or agent of the entity may participate in the selection, award, or administration of a contract funded by federal grant dollars if he or she has an actual or apparent conflict of interest.

4.       The organization must document the procurement steps and activities required to be completed. This includes the basis for the type of procurement, contract type, and the basis for the contractor selection and price.

5.       Ultimately, the recipient of federal awards must maintain an appropriate level of oversight to ensure that contractors perform in accordance with the terms of their contract.

6.       Micro-purchase:  Purchases where the aggregate dollar amount does not exceed $3,000 (or $2,000 if the procurement is construction and subject to Davis-Bacon). When practical, the entity should distribute micro-purchases equitably among qualified suppliers. No competitive quotes are required if management determines that the price is reasonable.

7.       Small purchase: Includes purchases up to the Simplified Acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of sources.

8.       Sealed bids: Used for purchases over the Simplified Acquisition Threshold, which is currently $150,000. Under this purchase method, formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price. This method is the most common procurement method for construction contracts.

9.       Competitive proposals: Used for purchases over the Simplified Acquisition Threshold, which is currently $150,000. This procurement method requires formal solicitation, fixed-price or cost-reimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors.

10.    Noncompetitive proposals:  Also known as sole-source procurement, this may be appropriate only when specific criteria are met.  Examples include when an item is available only from one source, when a public emergency does not allow for the time of the competitive proposal process, when the federal awarding agency authorizes, or after a number of attempts at a competitive process, the competition is deemed inadequate.

 

 

 

 

Angela,

 

Great question! We are in the same situation in Illinois.  I’d be interested in others’ thoughts on this.

 

Wayne

 

 

 

Section 200.317 of the Uniform Guidance  is titled “procurement by States” and reads:

 

When procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non-Federal funds.

 

Is anyone aware of how this impacts state-owned institutions of higher education?  Our lawyers always tell us we are a state agency and we are subject to the state procurement code.  I am wondering if we really have to adhere to the rest of the procurement sections of the Uniform Guidance (noting that 200.322 and contract clauses required by 200.326 still apply to states.)  Has anyone explored this?

 

 

Angela C. Smith-Aumen

Director of Sponsored Programs and Grant Development

Office of the Chancellor

Pennsylvania’s State System of Higher Education

2986 N. Second Street

Harrisburg, PA 17110

Ph: 717-720-4018

FX: 717-720-4211

E: xxxxxx@passhe.edu

 

 

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