Implementation of Procurement Standards Under Uniform Guidance


The period for implementing the Uniform Guidance procurement standards has passed, and all governmental, not-for-profit and higher education organizations should now have an updated conflict of interest policy as well as documentation that supports the procurement process.

As a refresher, the effective date for procurement standards went into effect for all nonfederal entities with years beginning on or after December 26, 2017 – calendar year 2018 or fiscal years ended in 2019.

Procurement standards are contained in Uniform Guidance Subpart D, Sections 200.317 – 200.326 and include the methods of procurement allowed and specific items that must be included with contracts under federal awards. However, the thresholds for the micro-purchases and simplified acquisitions were increased by the National Defense Authorization Act of 2017 (“NDAA”) per the Office of Management and Budget Memorandum M-18-18 issued on June 20, 2018.

Five Procurement Methods

There are five procurement methods outlined in Uniform Guidance:

  1. Micro-purchases
  2. Small Purchases
  3. Sealed Bids
  4. Competitive Proposals
  5. Noncompetitive Proposals

General Procurement Guidelines

There are four general procurement guidelines that all five methods must follow:

  • The policies for procurement must be documented.
  • The procurement of all items must be necessary.
  • The procurement must include full and open competition.
  • There can be no conflict of interest in the procurement.

Procurement Method Guidelines

Each method of procurement must also follow its own set of guidelines.

1. Micro-purchases

This method is allowed for aggregate purchases of supplies or services under $10,000, an increase from $3,000 as part of the NDAA threshold increase.

No competitive quotes are required if the price is considered reasonable.

The NDAA contains an approval process for certain institutions of higher education, or related or affiliated nonprofit entities, nonprofit research organizations or independent research institutions that want to request a higher threshold. Requests should be submitted to the institution’s cognizant federal agency for indirect cost rates upon meeting additional criteria outlined in the NDAA.

2. Small Purchases

This method is allowed for services, supplies or other property under the “Simplified Acquisition Threshold” of $250,000, an increase from $150,000 as part of the NDAA threshold increase.

Under this method, the use of informal purchase procedures would apply, which would include price or rate quotations from an adequate number of sources. Judgment will be needed in determining the number of sources as there is no specified number cited in the guidance.

Sealed bids, Competitive and Noncompetitive Proposals

This method requires a formal solicitation process for services, supplies or other property over $250,000.

3. Sealed Bids

Bids must be publicly solicited, and a firm-fixed-price contract is awarded to the lowest bidder meeting all required bid terms and conditions.

4. Competitive Proposals

Bids are solicited from more than one source and either a fixed-price or cost-reimbursement contract is awarded.
This method can be used in lieu of sealed bids; however, the entity must have a written method for conducting the technical evaluation of the proposals and for selection of awardees.

5. Noncompetitive Proposals

Bids are solicited from one source, with the following conditions:

  • The service or goods are only available from one source.
  • There is an emergency that does not allow for competitive solicitations.
  • The federal agency or pass-through entity authorizes noncompetitive proposals after written request.
  • After a solicitation process, it is determined competition is inadequate.


10 Challenges Implementing Uniform Guidance Procurement Standards

If you have questions or are experiencing challenges from the implementation of procurement standards under the Uniform Guidance, fill in the form below and a member of our Not-for-Profit and Education Services team will be in touch.

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