Understanding Uniform Guidance in Federal Procurement
Uniform Guidance in Federal Procurement, also known as the Super Circular, simplifies and strengthens oversight for federally funded projects. It consolidates multiple federal regulations and sets out procurement standards to prevent waste, fraud, and abuse. Effective from December 26, 2013, the guidance impacts entities receiving federal awards, requiring competitive sourcing for goods and services over $10K, among other changes. This shift necessitates more detailed documentation and introduces stricter criteria for non-competitive transactions. Individuals and organizations must adhere to conflict of interest requirements.
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Uniform Guidance Procurement Highlights Slide 1
What is OMB and how does it relate to Uniform Guidance? The OMB governs the management of federally funded sponsored projects across the entire project lifecycle. Slide 2
How did Uniform Guidance (aka Super Circular ) come about? The Super Circular consolidates and streamlines eight Federal regulations (including OMB Circulars A-110, A-122, and A-133) into a single, comprehensive policy guide now called Uniform Guidance Slide 3
Super Circular Serves To Strengthen oversight and prevent waste, fraud and abuse, streamline guidelines, ease the administrative burden for nonfederal entities receiving federal awards. Applies to state and local governments, Indian tribes, higher education institutions and not-for-profit organizations. Slide 4
Effective Dates Super Circular or Uniform Guidance effective 12/26/2013 with one year to implement Procurement Standards within Uniform Guidance 2 C.F.R. 200.317-200.326 take effect 7/1/18 Slide 5
Today vs. 7/1/18 and after (for sponsored transactions) WHAT STAYS THE SAME Competitive sourcing of goods and services $10K and above Number of quotes or proposals required depends on dollar thresholds Substantiated rationale required for non- competitive transactions (single/sole source) Price analysis required for single/sole source Support documentation required for competitive solicitations WHAT HAS CHANGED No change 3 or more quotes/proposals required More detailed documentation required Cannot use continuity of research Fewer allowances for non-competitive transactions (i.e. Sole Source exemption) Purchases above $10K must use a more elaborate public standardized ITB/ITN process administered by Main Procurement Services Utilization of Minority, Women and disadvantaged Businesses and equitable distribution of spend (not subcontracting) Conflict of Interest requirements Individual and Organizational Conflict of Interest must maintain written standards that include disciplinary actions Slide 6
How will this impact me? Additional effort will be required for purchases $10K and over and especially $75K and up due to UG public competitive requirements Transactions will require feedback from subject matter experts (researchers, PI s, etc.) to document solicitations UG documentation requirements are generally more significant Slide 7
Must Vs. Should Must = Requirement When the Uniform Guidance references: Should = Best Practice, Suggestion, Recommendation Slide 8
Terms Recipient = Institution as a whole Non-Federal Entity = FSU Slide 9
Procurement (200.318(a)) Question: Can/should an organization have different procurement procedures for federal and nonfederal procurements? Slide 11
Procurement (200.318(a)) Answer: The nonfederal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the Uniform Guidance Slide 12
Procurement (200.318(b)) Entities must maintain oversight to ensure that contractors perform in accordance with the and terms conditions specifications of their contracts or purchase orders Slide 13
Individual Conflict of Interest (200.318(c)(1)) Documented policy which states: No - Employee - Officer - Or Agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest Slide 14
Individual Conflict of Interest Such a conflict of interest would arise when: - The employee - Officer - Or Agent - Any member of his or her immediate family - His or her partner - Or an organization which employs or is about to employ any of the parties indicated herein has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. Slide 15
Individual Conflict of Interest The officers, employees, and agents of the non-Federal entity must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontractors. Standards of conduct must provide for disciplinary actions to be applied for violations. Slide 16
Organizational Conflicts of Interest (200.318(c )(2)) Organizational conflicts of interest means that because of relationships with: - A parent company - Affiliate - Or subsidiary organization the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization Slide 17
Procurement (200.318(d)) Procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Slide 18
Procurement (200.318 (e )+(f)+(g)) When appropriate, entities are encouraged to: Enter into state and local intergovernmental agreement or inter-entity agreement where appropriate Use Federal excess and surplus property in lieu of purchasing new equipment and property Use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions Slide 19
Procurement (200.318(h)) Organizations must award contracts only to responsible contractors: Contractors Ability: Must be able to perform successfully under the terms and conditions of a proposed procurement Consideration: Contractor integrity, compliance with public policy, records of past performance, and financial and technical resources. Slide 20
Procurement Records (200.318(i)) The University must maintain records sufficient to detail the history of procurement. These records will include: Rationale for the method of procurement Selection of contract type Contractor selection or rejection Basis for the contract price Suspension and debarment checks Slide 21
Competition (200.319) All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. Slide 22
Competition (200.319) Examples considered restrictive of competition: Unreasonable requirements to qualify Requiring unnecessary experience Noncompetitive pricing practices between firms or affiliated companies Noncompetitive contracts to consultants Organizational conflicts of interest Specifying only a brand name product instead of allowing an equal product and describing performance or other relevant requirements Any arbitrary action in the procurement process. Slide 23
Competition (200.319) These procedures must ensure that all solicitations: Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. The description must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Slide 24
All solicitations must Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. Slide 25
Methods of Procurement (200.320) Procurement by micro-purchases: Up to $10K. Procurement by small purchase procedures: $10K to $75K Procurement by sealed bids (formal advertising): $75K and greater in value Procurement by competitive proposals: Used when conditions are not appropriate for the use of sealed bids. Procurement by noncompetitive proposals: Used to obtain proposals from one source with conditions. Slide 26
Procurement by non-competitive proposals (200.320(f)) May only be used when one or more apply: The item is available only from a single source; The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; The Federal awarding entity or pass-through entity expressly authorizes non-competitive proposals in response to a written request from the non-Federal entity; or After solicitation of a number of sources, competition is determined inadequate. Slide 27
Contracting with small and minority businesses, women s business enterprises, and labor surplus firms (200.321) The non-Federal entity must take all necessary affirmative steps to assure that minority businesses, women s business enterprises, and labor surplus area firms are used when possible. Slide 28
Procurement of recovered materials (200.322) Must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. Slide 29
Contract Cost and Price (200.323) Must make independent estimates before receiving bids or proposals. Must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed Slide 30
Concerning Equipment Use (200.313(2)) During the time that equipment is used on the project for which it was acquired must also make equipment available for use on other projects currently or previously supported by the Federal government provided use will not interfere with the work on the projects for which it was originally acquired Slide 31
Supplies (200.314(a)) The non-Federal entity must retain the supplies for use on other activities or sell them, but must, in either case, compensate the Federal government for its share. Slide 32
Questions? Slide 33
