1. Spending Federal Money
Interesting Job
Poem
A Guide to Purchasing Under Uniform Guidance

2. Outline What is Uniform Guidance Purchasing methods
Additional requirements
Contracts, control, and cost principles

3. What is Uniform Guidance

4. What is the Uniform Guidance (UG)?
Code of Federal Regulations: 2 CFR 200
OMB’s consolidation of circulars for costing, administration and audit of Federal awards
Replaced 8 circulars
Issued on December 26, 2013
Effective largely on December 26, 2014
Some extensions/delays
Biggest change in Federal regulations in 50 years
Applies to all aspects of grants management, not just procurement
UG is still being interpreted and clarified
Extended if documented to July If not this then Circular A-110

5. Goals of Uniform Guidance
Ease administrative burden for Federal agencies and nonfederal entities
Strengthen oversight to reduce the risk of waste, fraud and abuse.

6. Why Reduce Fraud, Waste and Abuse?
$600 billion grant awards each year
$100 billion improper payments each year.
Over a three-year period:
$180 million to 20,000 individuals who were dead
$230 million to 14,000 fugitives or jailed felons
OMB goal to recover $50 billion of improperly paid funds a year
OMB recovered $47 billion in the first year of reform.
Thompson Information Services

7. Where can I find it US Government Publishing Office www.ecfr.gov
Electronic Code of Federal Regulations
Title 2 – Grants and Agreements
Part 200

8. Overview of parts Subpart A – Acronyms & Definitions
Subpart B – General Provisions
Subpart C – Pre-Award Requirements
Subpart D – Post-Award Requirements*
Subpart E – Cost Principles*
Subpart F – Audit Requirements
12 Appendices
Appendix II – Contract Provisions*

9. Purchasing Methods

10. Thresholds Micropurchase - $3,500 (set by FAR)
$2,000 – Construction
$10,000 – Higher Ed and research organizations - NDAA
Simplified Acquisition Threshold (SAT) - $150,000
What are your thresholds?
NDAA – National Defense Authorization Act

11. The Procurement Claw

12. General Standards

13. Maintain written policies and standards of conduct
Your written policy should detail, among other things:
Thresholds and appropriate process for each of the five procurement methods
How conflicts of interest involving employees engaged to select, award, and administer contracts will be governed
How conflicts of interest involving parent entities, affiliates, and subsidiaries will be governed at the organizational level

14. Centralize purchasing operations
Decentralization = greater challenge for compliance
How centralized are you?
Do you use SPO/DPO, P-Cards, other methods?
Limits/thresholds

15. Five Methods of Procurement

16. Additional Requirements

17. Annoyances Orders that linger Inadequate or embarrassing specs
Unwanted Commodities

18. Small, Minority, Women, Labor Surplus
Use whenever possible
Include on bid list
Divide project into smaller pieces
Establish delivery schedules which encourage participation
Use SBA and MBDA
Require Prime to take same steps with subs
Does NOT say give preference
SBA – Small Business Administration
MBDA – Minority Business Development Agency – Department of Commerce
Labor Surplus – Department of Labor – Unemployment is higher than average. – Garfield, San Juan, and Wayne

19. Geographical Preferences
Prohibited from utilizing geographical preference
Is that a worry here?

20. Recovered Materials Procurements over $10,000
Comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act.
contain the highest percentage of recovered materials practicable
procuring solid waste management services in a manner that maximizes energy and resource recovery
establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines

21. Negotiating Profit
Must negotiate profit for sole source and procurements over SAT.
Consider:
complexity of the work to be performed
the risk borne by the contractor
the contractor's investment
the amount of subcontracting
the quality of its record of past performance
industry profit rates in the surrounding geographical area for similar work

22. Independent Cost Estimate
A cost or price analysis must be performed for all Purchases over the simplified acquisition threshold.
Must include getting an independent estimate prior to receiving bids or proposals
Ranges from a simple budgetary estimate to a complex estimate
Does not imply that it is performed by someone other than the grantee.
The Best Practices Procurement Manual (Federal Transit Administration), Section Cost and Price Analysis

23. System for Award Management (SAM)
Must check SAM before engaging vendor
Checking for suspension or disbarment
If you engage a prohibited vendor, the federal awarding agency could refuse to reimburse your costs or request a return of previously awarded funds.

24. Record Keeping
Must maintain records sufficient to detail the history of procurement.
Includes
rationale for the method of procurement
selection of contract type
contractor selection or rejection
basis for the contract price.
Must be kept for 3 years
Equipment and real property – 3 years after disposition

25. Contracts, Control, and Cost principles

26. Terms and Conditions/Contract Provisions
Must include applicable provisions:
Equal opportunity employment
Debarment
Rights to inventions
Construction over $2,000 - Davis-Bacon Act
Over $10,000 - termination for cause and convenience
Over $10,000 – Recovered materials/solid waste disposal act
Over $100,000 – Byrd anti-lobbying act
Mechanics and laborers over $100,000 – contract work hours and safety standards act
Over $150,000 – Clean air act and federal water pollution act
REQUIRED

27. Internal Controls Requires recipients to have strong internal controls
What is the control structure at your organization?

28. Cost Principles/Commodities
Review 55 cost principles
Update internal policies and procedures to protect allowable costs

29. Catalogs
“For three days after death, hair and fingernails continue to grow but phone calls taper off.”
Johnny Carson
“For years after you retire, your 401(k) will continue to vanish, but the company to whom you placed your very first order will continue to send you catalogs forever.”

30. Resources
eCFR Part 200 (Electronic Code of Federal Regulations):
COFAR (Council on Financial Assistance Reform):
COGR (Council on Governmental Relations): (Some resources only avail. to members)
DOE (Department of Education): guidance/index.html

31. Questions?