Prepare for the OMB Uniform Guidance Grace Period Conclusion
June 12, 2018
If your tribe has a fiscal year end of September 30 and you opted to use the procurement grace period under the OMB Uniform Guidance, it is time to start preparing for the new procurement rules.
The OMB Uniform Guidance set a higher level of formal documentation on procurement, beginning with organizational policies and procedures through individual contracts and oversight activities. Last year the OMB extended the procurement rules to December 25, 2017, meaning if your tribe has a fiscal year end of September 30, you must now comply with the procurement standards on October 1 of this year.
Procurement Standards Review:
- Micro-Purchase: Includes purchases where the aggregate dollar amount does not exceed $3,500 (or $2,000 if the procurement is construction and subject to Davis-Bacon). When practical, your tribe should distribute micro-purchases equitably among qualified suppliers. No competitive quotes are required if management determines that the price is reasonable.
- Small Purchase: Includes purchases up to $150,000. Informal purchasing procedures are acceptable, but price or rate quotes are required from an adequate number of sources.
- Sealed Bids: Includes purchases over $150,000 and is common for construction projects. Formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price.
- Competitive Proposals: Includes purchases over $150,000 and requires formal solicitation, fixed-price or cost-reimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded based on the most advantageous to the program, with the price being one of the various factors.
- Sole Source: Can only be used when specific criteria is met: 1) product/service is only available from a single source; 2) public emergency 3) federal awarding agency authorization (the awarding agency specifically authorizes a non-competitive procurement after a written request from the Non-federal entity); 4) inadequate competition after solicitation of multiple sources.