Procurement Policies under the
Uniform Guidance
U.S. Department of Education
Purpose and Use of this Presentation
The Department of Education is providing this presentation to help
its grantees understand the contents of the Uniform Guidance and
should be viewed after or alongside of the regulations. It is not a
substitute for reading the regulations.
To get the most out of this presentation, view this as a notes page.
The notes section of each slide provides information to supplement
the points on the slide. To change to notes page: Go to View and
click on Notes Page.
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Learning Outcomes
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Understand the key terms regarding the procurement standards
Locate the procurement standards in 2 CFR Part 200
Understand basic concepts and how the UG impacts practices
Apply this knowledge administering your grant or subgrant
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Ensure your procurement procedures comply with the UG
Document all project related activities—including procurement—to
support decisions and allocation of funds
Be able to locate resources, tools, and contacts
Uniform Guidance
Title 2 of the Code of Federal Regulations, Part
200 (2 CFR Part 200)
Adopted by the Department of Education in 2
CFR Part 3474
Throughout this presentation, this symbol indicates a new or
significantly changed item.
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Authorities to consider when using 2 CFR Part 200
“This guidance does not change or modify
any existing statute or guidance otherwise
based on any existing statute.”
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When does 2 CFR Part 200 start?
Uniform Guidance (2 CFR Part 200) applies to:
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New and Continuation grants awarded on or after December 26,
2014
Former regulations (EDGAR Part 74 or 80 and OMB circulars)
apply to:
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Grants awarded prior to December 26, 2014
See the Department’s FAQs for more information on
implementation dates.
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When does 2 CFR Part 200 start?
Award Start*
Uniform Guidance
Start
Optional Procurement
Grace Period end date
1/1/2015
1/1/2015
12/31/2015
7/1/2015 (SEA)
7/1/2015
N/A
8/15/2015 (LEA)
8/15/2015
8/14/2016
10/1/2014
10/1/2015 (NCC)
9/30/2016
10/1/2015
10/1/2015 (New)
9/30/2016
* Award date or start of FY for formula grants; Assumes either
continuation or new award will be made at the end of the one year
period.
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Relationships and Key Terms
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Subrecipient or Contractor?
The relationship, rather than the document title, is the basis for
determining which requirements are applicable.
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Subrecipient means a non-Federal entity that receives a subaward from a
pass-through entity to carry out part of a Federal program (§200.93).
Contractor means an entity that receives a contract as defined in 200.22
Contract (§200.23).
§200.330 explains the roles of subrecipients and contractors.
§200.88 Simplified acquisition threshold
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The dollar amount below which a non-Federal
entity may purchase property or services using
small purchase methods
Set by the Federal Acquisition Regulation (FAR)
(§200.88)
Equals $150,000--adjusted periodically for
inflation
Locating Procurement Standards
§200.317 - 326
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§200.317 Procurement by states
A State must use the same procedures it uses to procure
property and services under a Federal award as it uses
for all other procurements using non-federal funds.
 States will comply with §200.322 Procurement of
recovered materials.
 All other grantees and subgrantees must follow sections
200.318 through 200.326.
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§200.318 General procurement standards
Non-Federal entities must:
 Use own documented procurement procedures,
 Maintain oversight to ensure contractor compliance, and
 Maintain written standards of conduct covering,
conflicts of interest—real and or perceived—for staff
engaged in the selection, awarding or the
administration of a contract.
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Conflicts of Interest – §200.318(c)(1)
A conflict of interest would arise when the employee,
officer, or agent, any member of his or her
immediate family, his or her partner, or an
organization which employs or is about to employ
any of those parties, has a financial or other interest
in or receives a tangible personal benefit from a
firm considered for a contract.
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Conflicts of Interest (ctd)
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Non-Federal entities may set standards for situations in
which the financial interest is not considered substantial
or the gift is an unsolicited item of nominal value.
The standards of conduct must provide for disciplinary
actions to be applied for violations of such standards.
Organizational conflicts of interests could be an
issue that bares watching by ED staff.
Organizational Conflicts of Interest
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Conflicts arise when a non-Federal entity is unable or
appears to be unable to be impartial in conducting a
procurement action involving a related organization.
 Written
standards of conduct must address organizational
conflicts of interest.
 Does not apply when related organization is a local
government, state or Indian tribe.
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Foster Economy and Efficiency
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Avoid purchasing unnecessary or duplicative items;
Consider consolidating or breaking out procurements, and
leasing vs purchasing alternatives;
Consider entering into intergovernmental agreements or
inter-entity agreements for the procurement of common or
shared goods and services; and
Use Federal surplus equipment and property.
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Responsible Contractors §200.318(h)
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The non-Federal entity must award contracts only to
responsible contractors who are able to perform
successfully under the terms and conditions the contract.
Consider:
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Contractor integrity, compliance with public policy,
Record of past performance, financial & tech resources, and
Possible exclusions (See § 200.180—Suspension and
Debarment).
Recordkeeping - §200.318(i)
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The non-Federal entity must maintain records
sufficient to detail the history of procurement.
Records include, but not limited to the following:
 Rationale
for the method of procurement,
 Selection of contract type,
 Contractor selection or rejection, and
 The basis for the contract price.
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§200.319 Competition
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All procurement transactions must be conducted in a
manner providing full and open competition.
Real or perceived unfair advantages must be
avoided.
New change to address real or perceived unfair
advantage impacts certain contractors.
Organizational Conflicts of Interest
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Section 200.319(a) introduction provides that
contractors that develop or draft specifications,
requirements, statements of work, or invitations for
bids or requests for proposals must be excluded
from competing for such procurements (this insider
information is the very essence of organizational
conflicts of interests).
Examples of Restricting Competition
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Placing unreasonable requirements on firms to
qualify,
Unnecessary experience and excessive bonding,
Noncompetitive pricing practices between firms, and
Specifying only a “brand name” product instead of
allowing an equal product to be offered.
Allowable use of Brand Names
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Provide a clear and accurate description of the
technical requirements to be procured.
 The
description must not unduly restrict competition.
 When impractical to otherwise describe the technical
requirements, a “brand name or equivalent” description
may be used as a means to define the procurement.
 Specific features of the named brand that must be
achieved are to be clearly stated.
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§200.320 Methods of procurement to follow
The non-Federal entity must use one of the following:
 Micro-purchases,
 Small purchase procedures,
 Sealed bids,
 Competitive proposals, or
 Non-competitive proposals (severely limited).
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§200.67 Micro-purchase
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Micro-purchase means a purchase of supplies or services
using simplified acquisition procedures, the aggregate amount
of which does not exceed the micro-purchase threshold
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As of October 1, 2015 the micro-purchase threshold will increase
from $3,000 to $3,500
Per Section 200.320 (a), micro-purchases:
 Must be distributed equitably among qualified suppliers.
 May be awarded without soliciting quotations if
the price is considered to be reasonable.
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Small Purchase Procedures
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Simple, informal methods for securing needed
material that do not cost more than Simplified
Acquisition Threshold ($150,000).
Price or rate quotations, when used, must be
obtained from an adequate number of qualified
sources.
Sealed Bids (Formal Advertising)
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Bids are publicly solicited and a firm fixed price
contract (lump sum or unit price) is awarded to the
responsible bidder whose bid:
 conforms
with all the material terms and conditions and
 is the lowest in price.
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Preferred method for procuring construction
Competitive Proposals
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Must use adequate number of sources, and either a
fixed price or cost-reimbursement type contract is
awarded.
Generally used when conditions are not appropriate
for the use of sealed bids.
Noncompetitive Proposals (Sole Source)
Solicitation of a proposal from only one source and may
be used only when one or more of the following
circumstances apply:
 The item is available only from a single source;
 An emergency or other exigency for the requirement
will not permit a delay resulting from competitive
solicitation;
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Noncompetitive Proposals (Sole Source)
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The Federal awarding agency or pass-through entity
expressly authorizes noncompetitive proposals in
response to a written request from the non-Federal
entity; and/or
After solicitation of a number of sources, competition
is determined inadequate.
§200.323 Contract cost and price
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If procurement exceeds the Simplified Acquisition
Threshold, the non-Federal entity must perform a cost or
price analysis.
The method and degree of analysis depends on the
facts surrounding the particular procurement.
The non-Federal entity must make independent estimate
before receiving of any bids or proposals.
Negotiating Profit
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If there is no price competition or the procurement
exceeds the simplified acquisition threshold, nonFederal entity must negotiate profit as a separate
element of the price.
Fair and reasonable profit is an understood and
allowable result of the successful completion of a
contract.
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Technical specifications review§200.324
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Grantees and subgrantees can request review by
pass-through entity and Federal agency.
If there is an appearance of irregularitys, we can
still look at it without a request.
All the standards for review of procurement
procedures are found in § 200.324 (Be aware!).
§200.326 Contract Provisions
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The non-Federal entity's contracts must contain the
applicable provisions described in Appendix II to
Part 200—Contract Provisions for non-Federal
Entity Contracts Under Federal Awards.
Federal agency or non-Federal entity may require additional
provisions.
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