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

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establishment and rationale of the threshold changes. 2. Simplified acquisitions — i. Simplified acquisition procedures. The aggregate dollar amount of the procurement transaction is higher than the micro -purchase threshold but does not exceed the simplified acquisition threshold. If simplified acquisition procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Unless specified by the Federal agency, the city may exercise judgment in determining what number is adequate. ii. Simplified acquisition thresholds. The city is responsible for determining an appropriate simplified acquisition threshold based on internal controls, an evaluation of risk, and its documented procurement procedures, which may be lower than, but must not exceed, the threshold established in the FAR. (b) Formal procurement methods. Formal procurement methods are required when the value of the procurement transaction under a federal award exceeds the simplified acquisition threshold of the city. Formal procurement methods are competitive and require public notice. The following formal methods of procurement are used for procurement transactions above the simplified acquisition threshold determined by the city in accordance with paragraph (a) (2) (ii) of this section: 1. Sealed bids. This is a procurement method in which bids are publicly solicited through an invitation 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 of the invitation and is the lowest in price. The sealed bids procurement method is preferred for procuring construction services. i. For sealed bidding to be feasible, the following conditions should be present: A. A complete, adequate, and realistic specification or purchase description is available; B. Two or more responsible bidders have been identified as willing and able to compete effectively for the business; and C. The procurement lends itself to a firm -fixed-price contract, and the selection of the successful bidder can be made principally based on price. ii. If sealed bids are used, the following requirements apply: A. Bids must be solicited from an adequate number of qualified sources, providing them with sufficient response time prior to the date set for opening the bids. Unless specified by the Federal agency, the city may exercise judgment in determining what number is adequate. For local governments, the invitation forbids must be publicly advertised. B. The invitation for bids must define the items or services with specific information, including any required specifications, for the bidder to properly respond; C. All bids will be opened at the time and place prescribed in the invitation for bids. For local governments, the bids must be opened publicly. D. A firm -fixed-price contract is awarded in writing to the lowest responsive bid and responsible bidder. When specified in the invitation for bids, factors such as discounts, transportation cost, and life -cycle costs must be considered in determining which bid is the lowest. Payment discounts must only be used to determine the low bid when the city determines they are a valid factor based on prior experience. E. The city must document and provide a justification for all bids it rejects. 2. Proposals. This is a procurement method used when conditions are not appropriate for using sealed bids. This procurement method may result in either a fixed-price or cost - reimbursement contract. They are awarded in accordance with the following requirements: