OMB Uniform Guidance - Section 2 CFR 200.318
OMB Uniform Guidance Section 2 CFR 200.318(e) encourages non-federal entities to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services in order to foster greater economy and efficiency. Further, 2 CFR 200 requires that a grantee or sub-grantee follow the most restrictive rule applicable to it, whether it be its own state procurement laws or the procurement requirements set out in the federal rules.
HGACBuy uses a public competitive bid/proposal process which complies with the federal rules for all threshold levels. [The process also complies with state procurement laws applicable to Texas school districts.]
- For purchases below the micro-purchase level (currently $3,500), the federal rules do not require the solicitation of competitive quotations but the Member must determine the price to be reasonable. HGACBuy’s public competitive bid/proposal process is a good indication that a price is reasonable.
- The federal rules state that purchases between the micro-purchase level (currently $3,500) and the simplified acquisition threshold (currently $150,000) require “price or rate quotations to be obtained from an adequate number of qualified sources.” HGACBuy provides multiple contract awards through its bid/proposal process. When using HGACBuy, purchasers may obtain price or rate quotations from an adequate number of qualified sources.
- Purchases above the simplified acquisition threshold can use either sealed bids, competitive proposals, or non-competitive proposals depending on the circumstances. HGACBuy uses sealed bids and competitive proposals as required by the federal rules.
While HGACBuy complies with all the rules listed above, there may be additional requirements that the individual Member must comply with. HGACBuy recommends that the individual Member:
- Perform a cost or price analysis for all purchases above the simplified acquisition threshold. At a minimum, the member should make independent estimates before receiving bids or proposals.
- To the extent possible, distribute micro-purchases equitably among suppliers.
- Review the entirety of 2 CFR Part 200.318-326 to determine other requirements that may apply to the Member directly.
- Review its individual state procurement laws and regulations to determine if they are more restrictive than the federal regulations.
- Consider the procurement requirements of the funding source to ensure all rules are fulfilled, (those listed here, as well as others);
- Recognize that pricing offered on HGACBuy can be used to negotiate with established contractors to attain best value.