Method #1: Micro-Purchase

Micro-purchases are the simplest and most informal of the procurement methods in the new grant guidance.

Here are the main points:

• Purchases are not to exceed was $3500 Now $10,000
• No quotations required if the price is reasonable
• To the extent practicable, distribute purchases equitably among qualified suppliers

Method #2: Small Purchase

With purchases under the simplified acquisition rules (was $150,000 NOW $250,000) the process is still relatively simple and there are not extensive bidding requirements.

• Purchases are up to $150,000 NOW $250,000 (the limit for the simplified acquisition rules)
• Get rate quotations from an adequate number of qualified sources (Note, your writtenprocurement procedures should define what is meant by “adequate” for example; more than one.)
• No cost or price analysis is required for purchases under the simplified acquisition limit

Method #3: Sealed Bid

Once you start making purchases over was $150,000 NOW $250,000. the process gets morecomplicated and formalized.

• Purchases are over was $150,000 NOW $250,000
• Primarily used in construction projects, such as a firm fixed price contract
• Price is a major factor and a formal process for bidding is generally required

Method #4: Competitive Proposals

Just like the sealed bid method, competitive proposals mean more requirements and documentation.

• Purchases are over was $150,000 NOW $250,000
• Use contracts such as fixed price or cost reimbursement
• Formal Request for Proposal (RFP) with pre-determined evaluation methods for an adequate number of qualified sources

Method #5: Sole Source

Sometimes because of the uniqueness of the goods or services or the immediacy of the need, competition is NOT as open as we would wish in the procurement process.  If these cases, the sole-source method must be followed.

• This non-competitive method is available for procurements of any dollar amount
• Because there is no competition it must be authorized by the agency (or Pass-through entity-for sub-recipients)

There are exceptions to pre-approval such as certain unique circumstances or a public emergency.

One-Size-Fits-All Procurement Rules

Regardless of the size of the purchase, these 5 characteristics must be still be met:

#1: The purchase must comply with the non-Federal entity’s documented procurement procedures

#2: The purchase must be necessary to carry out the Federal award.

#3: The purchase must be made with open competition to the extent required.

#4: The organization is in compliance with their conflict of interest policy.

#5: The purchase documentation contains a sufficient and proper history of the purchase.

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This memorandum from OMB clarified several points regarding the new procurement rules as part of the implementation of 2 CFR Part 200–also known as the “Uniform Guidance.”