Re-Cap
Procuring Goods and Services When Using
Federal Funds
James Shoop, Presenter
March 24 & 26, 2015
1. EDGAR 80.36—Phased Out—Effective July 1, 2015
2. Uniform Administrative Regulations—2 CFR Part 200 Effective July 1, 2015
3. Federal Procurement Standards—2 CFR Part 200.317 et seq.
Highlights of Federal Procurement Standards
A. Procurement procedures must be in writing and documented.
Recommendation—it is recommended that all school districts
have all federal procurement procedures written in the
following documents:
1. Board Policy
2. SOP Manual
3. Purchasing Manual
B. Ethics and Standards of Conduct for Conflict of Interests
Recommendation—it is recommended that the district’s ethics
in purchasing and vendor relations policy be included in the
following documents:
1. Board Policy
2. SOP Manual
3. Purchasing Manual
4. All Procurement Documents
Procuring Goods & Services Using Federal Funds
March 2015
C. Methods of Procurement—Federal Funds—More Restrictive
School districts are to follow the Public School Contracts Law except
where the federal standards are in conflict or more restrictive.
Recommendation--it is recommended that SBA’s seek the
opinion of legal counsel as potential conflicts and determination of
the more restrictive avenue of approach.
Examples of conflicts/more restrictive
1. Micro-purchase Threshold--$3,000.00
2. Small Purchases Threshold--$150,000.00
3. Use of NJ State Contract Vendors; Use of Cooperatives
4. Exceptions to Advertising—Awarding Professional Services
contract without competition
5. Sole or Single Source Vendors
D. Methods of Procurement—Outlined in Federal Standards
All procurement transactions must be conducted in a manner
providing full and open competition. (200.319)
1. Procurement by Micro-purchases--$3,000.00
Recommendation—it is recommended that all purchases in
the aggregate that do not exceed $3,000, that sound
business practices are used. 200.320 (a)
2. Procurement by Small Purchase Procedures--$150,000.00
Recommendation—it is recommended that SBA’s use
competitive bid or the competitive contracting process for
all contracts that exceed the district’s bid threshold.
200.320 (b)
Procuring Goods & Services Using Federal Funds
March 2015
3. Procurement by Sealed Bids
Recommendation—it is recommended that SBA’s use the
competitive bid process when awarding the contract to the
vendor who submits the firm fixed contract prices—lump
sum or unit cost. 200.320 (c)
4. Procurement by Competitive Proposals
Recommendation—it is recommended that SBA’s use an
RFP or competitive contracting process when procuring
services that are be awarded by an evaluative process,
rather than a firm fixed contract price. 200.320 (d)
5. Procurement by Non-competitive Proposals
Recommendation—Although the federal government
recognizes contract may be awarded to sole source vendors
through this process—it is recommended that SBA’s use the
competitive proprietary bid process for sole or single source
contracts. 200.320 (f)
Procuring Goods & Services Using Federal Funds
March 2015
E. Debarment and Suspension (200.212) (Appendix II to Part 200)
Recommendation—it is recommended that all districts have
and an execute policies and procedures on debarment and
suspensions of vendors. Language on debarment and
suspension should be included in the following documents:
1. Board Policy
2. SOP Manual
3. Purchasing Manual
4. All Procurement Documents
F. Federal Contract Addenda
Recommendation—it is recommended to be in compliance
with Appendix II to Part 200 that all contracts and all
procurement documents include a Federal Contract Addenda
document that explains all required provisions.
G. Thresholds—Methods of Procurement
Recommendation—it is recommended that SBA’s consider
using as guidance the following thresholds and methods of
procurement when purchasing goods and services when using
federal funds:
Methods of Procurement – Using Federal Funds
Effective July 1, 2015
Description of Goods/Services
Amount
Goods and Services
Goods and Services
Goods and Services
Less than $3,000
$3,000-$35,999
$36,000 or more
Procurement Method
Sound Business Practice
Quotation or Bid
Bid
Professional Services
Professional Services
Professional Services
Less than $3,000
$3,000-$35,999
$36,000 or more
Simple Proposal
Request for Proposals (RFP)*
Competitive Contracting
Educational Consultant Services
Educational Consultant Services
Educational Consultant Services
Less than $3,000
$3,000 - $35,999
$36,000 or more
Simple Proposal
Request for Proposals (RFP)*
Competitive Contracting
Instructional Improvement Services
Instructional Improvement Services
Instructional Improvement Services
Less than $3,000
$3,000 - $35,999
$36,000 or more
Simple Proposal
Request for Proposals (RFP)*
Competitive Contracting
Professional Development Services
Professional Development Services
Professional Development Services
Less than $3,000
$3,000 - $35,999
$36,000 or more
Simple Proposal
Request for Proposals (RFP)*
Competitive Contracting
Sole Source (Proprietary) (a)
Sole Source (Proprietary) (a)
Sole Source (Proprietary) (a)
Less than $3,000
$3,000 - $35,999
$36,000 or more
Simple Proposal
Proprietary Quotation
Proprietary Bid
Services Provided by Government
Units/Schools
Services Provided by Government
Units/Schools
Services Provided by Government
Units/Schools
Less than $3,000
Simple Proposal
$3,000 - $35,999
Request for Proposals (RFP)*
$36,000 or more
Competitive Contracting
*RFP’s must be publicized when federal funds are being used.
Prepared by
James Shoop
SHOOP SBA, LLC
Shoop18A18A@gmail.com