XII. Procurement of Goods and Services
The subrecipient must have written purchasing policies. The subrecipient shall follow the same policies and procedures it uses for procurement from its non-Federal funds. The subrecipient shall ensure that every purchase order or other contract includes any clauses required by Federal statutes and executive orders, their implementing regulations, and the grant contract provisions. The subrecipient must have all goods and equipment on site prior to the end of the grant to request reimbursement for the item under the grant; items received after the grant ends are not allowable expenses under the grant. Procedures must avoid acquisition of unnecessary or duplicative items. Where appropriate, lease versus purchase analysis should be performed as well as other appropriate analysis for determining the most economical method for obtaining items or services. Recipients are encouraged to use Federal/State excess and surplus property when possible.
1. PROCUREMENT STANDARDS
Subrecipients shall use their own written procurement procedures and regulations, provided that the procurement conforms to applicable Federal law and the standards identified in the Procurement Standards Sections of CFR 200.317-200.326. Any subrecipient whose procurement system has been certified by a Federal agency is not subject to prior approval requirements of 28 CFR Parts 200. OCJP’s prior approval will only be required for areas beyond limits of the subrecipient certification.
Have a documented process to check for organizational conflict of interest with potential contractors;
Have a process in place to ensure that contracts are not awarded to contractors or individuals on the List of Parties Excluded from Federal Procurement and Non-procurement Programs;
Perform a System for Award Management (SAM) review of potential contractors or individuals; and
Not award or permit any award at any level to any party which is debarred or suspended.
For details regarding debarment procedures, see the government-wide guidelines for debarment and suspension codifed in 2 C.F.R. Part 180, and 2 C.F.R. Part 2867 , which adopts the OMB guidance in subparts A through I of Title 2 CFR Part 180, as supplemented by Title 2 Part 2867, as the DOJ policies and procedures for non-procurement debarment and suspension.
Highlights include but are not limited to:
1a. Cost and Price Analysis (2 CFR, Section 200.323): Describe the process for performing a cost or price analysis for every procurement action in excess of the small purchase threshold (phone bids, 3 quotes, etc).
1b. Noncompetitive Procurement (2 CFR, Section 200.320): Describe the process for procuring goods and/or services that cannot be conducted through normal competitive procurement methods, including emergency or sole source procurement.
1c. Micro Purchase Procedures (2 CFR, Section 200.320): Describe the process for procuring goods, and/or services when the total dollar amount is less than your agency’s relevant micro purchase threshold per procurement transaction.
1d. Small Purchase Procedures (2 CFR, Section 200.320): Describe the process for procuring goods, and/or services when the total dollar amount is less than your agency’s relevant small purchase threshold per procurement transaction.
1e. Simplified Acquisition Procedures (2 CFR, Section 200.320): Describe the process for procuring goods, and/or services when the total dollar amount is less than your agency’s relevant simplified acquisition purchase threshold per procurement transaction.
1f. Formal Purchase Procedures (sealed and proposals) (2 CFR, Section 200.320) Describe the process for procuring goods and/or services when the dollar amount is more than your agency’s relevant small purchase threshold per procurement transaction.
1g. Duplication of Goods/Services (2 CFR, Section 200.318): Describe the process used to ensure that there is no acquisition of unnecessary or duplicate goods or services.
1h. Gratuities, Favors, or Gifts (2 CFR, sections 200.318 and 400.2): Include a prohibition on soliciting or accepting gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to sub agreements. Agencies may define a set of standards for situations in which financial interest or gratuity is not substantial or the gift is an unsolicited item of nominal value. If the latter is chosen, include the definition of nominal value.
2. ADEQUATE COMPETITION
All procurement transactions, whether negotiated or competitively bid and without regard to dollar value shall be conducted in a manner so as to provide maximum open and free competition. Interagency agreements between units of local government are excluded from this provision.
3. NON-COMPETITIVE PRACTICES
The subrecipient shall be alert to organizational conflicts of interest or non-competitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. Contractors that develop or draft specifications, requirements, statements of work, and/or Requests for Proposals (RFP’s) for a proposed procurement shall be excluded from bidding or submitting a proposal to compete for the award of such procurement. Any request for exemption must be submitted in writing to OCJP.
This Page Last Updated: June 30, 2022 at 2:28 AM