2026-010 - Adopting Procurement Policies and Procedures for Federal Grant Contracts

Home Browse Search

employees making work products or providing services on a contract, and other worker protections. This subpart also does not prohibit recipients and subrecipients from making inquiries of bidders about these subjects and assessing the responses. Any scoring mechanism must be consistent with the U.S. Constitution, applicable Federal statutes and regulations, and the terms and conditions of the Federal award. (g) Noncompetitive procurements can only be awarded in accordance with § 200.320(c). § 200.320 Procurement methods. There are three types of procurement methods described in this section: informal procurement methods (for micro- purchases and simplified acquisitions); formal procurement methods (through sealed bids or proposals); and noncompetitive procurement methods. For any of these methods, the city must maintain and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319. (a) Informal procurement methods for small purchases. These procurement methods expedite the completion of transactions, minimize administrative burdens, and reduce costs. Informal procurement methods may be used when the value of the procurement transaction under the Federal award does not exceed the simplified acquisition threshold as defined in § 200.1. Recipients and subrecipients may also establish a lower threshold. Informal procurement methods include: 1. Micro -purchases — i. Distribution. The aggregate amount of the procurement transaction does not exceed the micro- purchase threshold defined in § 200.1. To the extent practicable, the city should distribute micro -purchases equitably among qualified suppliers. ii. Micro -purchase awards. Micro -purchases may be awarded without soliciting competitive price or rate quotations if the city considers the price reasonable based on research, experience, purchase history, or other information; and maintains documents to support its conclusion. Purchase cards may be used as a method of payment for micro- purchases. iii. Micro -purchase thresholds. The city is responsible for determining and documenting an appropriate micro -purchase threshold based on internal controls, an evaluation of risk, and its documented procurement procedures. The micro -purchase threshold used by the city must be authorized or not prohibited under State, local, or tribal laws or regulations. The city may establish a threshold higher than the Federal threshold established in the Federal Acquisition Regulations (FAR) in accordance with paragraphs (a) (1) (iv) and (v) of this section. iv. City increase to the micro -purchase threshold up to $50,000. The city may establish a threshold higher than the micro -purchase threshold identified in the FAR in accordance with the requirements of this section. The city may self -certify a threshold up to $50,000 on an annual basis and must maintain documentation to be made available to the Federal agency or pass- through entity and auditors in accordance with § 200.334. The self -certification must include a justification, clear identification of the threshold, and supporting documentation of any of the following: A. A qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent audit; B. An annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or, C. For public institutions, a higher threshold is consistent with State law. V. City increase to the micro -purchase threshold over$50,000. Micro -purchase thresholds higher than $50,000 must be approved by the cognizant agency for indirect costs. The city must submit a request that includes the requirements in paragraph (a) (1) (iv) of this section. The increased threshold is valid until any factor that was relied on in the