Procurement Leadership Council
New Uniform Guidance
Update & Discussion
9/2/14
Presented By:
Jacob Godfrey
UCSB Chief Procurement Officer and Materiel Manager
Uniform Guidance
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
supersedes and streamlines the following eight existing OMB Circulars:
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A-21 Cost Principles for Educational Institutions
A-87 Cost Principles for State, Local and Indian Tribal Governments
A-122 Cost Principles for Non-Profit Organizations
A-110 Uniform Administrative Requirements for Grants and Other Agreements with Institutions of
Higher Education, Hospitals and Other Non-Profit Organizations
A-102 Grants and Cooperative Agreements With State and Local Governments
A-133 Audits of States, Local Governments and Non-Profit Organizations
A-50 Audit Follow-up
A-89 Catalog of Federal Domestic Assistance
This is a major reform of how the federal government provides assistance awards (e.g., grants and
cooperative agreements) with the goal of increasing accountability and transparency while reducing the
administrative burden on non-federal entities receiving federal awards.
Effective Date
When does the Uniform Guidance become effective?
• Federal agencies must implement the requirements to be effective
by December 26, 2014.
• Administrative requirements and cost principles will apply to new
awards and to funding increments, in cases where the Federal agency
considers funding increments to be an opportunity to modify the
terms and conditions of the Federal award, to existing awards made on
or after Dec 26, 2014.
• Existing Federal awards that do not receive incremental funding with
new terms and conditions will continue to be governed by the terms
and conditions of the Federal award
Effective Date and Procurement
The Federal government will provide a grace period of one full fiscal year after the
effective date of the Uniform Guidance (December 26, 2014 ) for non-Federal entities
to comply with the procurement standards in the Uniform Guidance.
However, in light of the new procurement standards, for procurement policies and
procedures the non-Federal entity must document whether it is in compliance with
the old or new standard, and must meet the documented standard.
For example, the first full fiscal year for a non-Federal entity with a June 30th year end
would be the year ending June 30, 2016.
The Single Audit Compliance Supplement will instruct auditors to review procurement
policies and procedures based on the documented standard. For future fiscal years, all
non-Federal entities will be required to comply fully with the uniform guidance
Impact on Strategic Sourcing
• 200.318 (d) & (e)
Explicitly encourages non-federal entities to
build into their procurement policies practices
that consolidate procurements where
appropriate to make efficient use of Federal
funds.
Procurement Claw
(Sections200.320 & 200.317-326)
Impact on FARS/DFARS
Fundamentally unchanged for acquisition of
commercial items under federal contacts with
FARS flow down provisions
UG = Grants
FARS = Contracts
Micro vs. Small vs. Over Threshold
Micro (less than to $3,000)
UG
FAR
Entity must distribute
purchases equitably among
qualified suppliers (policy?)
Price reasonableness may
need to justified if contracting
officer knows that price is not
reasonable or no known
comparable pricing exists
Entity determines if price is
reasonable (document?)
Small (less than $150,000)
Entity must obtain quotations
from an adequate (policy?)
number of suppliers and
maintain a detailed history of
the procurement; quotation
sources, basis for selection
etc.
Entity must obtain at least two
quotations, unless small
business concern, and
document price
reasonableness.
Over Threshold
Competitive proposal or sole
source; document method of
solicitation, price
reasonableness, cost analysis,
and basis of award.
Competitive proposal or sole
source; document method of
solicitation, price
reasonableness, cost analysis,
and basis of award.
Conflict of Interest
• 200.112 The federal awarding agency must
establish conflict of interest policies for
Federal awards
• 200.318 The non-Federal entity must also
maintain written standards of conduct
covering organizational conflicts of interests
200.90 State Definition - Warning
• 200.90
State means any state of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and
any agency or instrumentality thereof exclusive of local
governments.
• This issue is being examined by UC OGC – impact TBD
Subrecipient and Contractor
Determination
200.330, 200.22, & 200.92
• It is the substance of the award that
determines how it should be treated, even if
the pass-through entity or non-Federal entity
receiving the award may call it by a different
name.
Action Items
• UC Location to document compliance under
old or new standards for the period 7/1/15 6/30/16
• Consider “adequate # quotes” and “method of
solicitation” policy
• Consider policy on Conflict of Interest
• Consider forming workgroup to develop
standard policy/procedures/wf
Additional Resources
UCOP: http://www.ucop.edu/research-policy-analysis-coordination/researchsponsors-agreements/federal-government/uniform-guidance/index.html
UCSB: http://www.bfs.ucsb.edu/omb/omb-uniform-guidance