Â鶹ÊÓƵ must ensure that goods and services purchased for the performance of a federal grant are obtained in a cost-effective manner and in compliances with the Federal Uniform Guidance, specifically, 2 CFR 200.317-326 and OMB Memorandum M-18-18.
For all purchases, Â鶹ÊÓƵ expects that the purchase complies with Â鶹ÊÓƵ’ documented procedures and that purchases are necessary (avoid unnecessary or duplicative purchases).
Any individual making purchases on behalf of a federal grant is required to abide by the following standards. The Principal Investigator is responsible for determining whether a purchase is allowable under the terms of their federal grant and that purchases are in line with Â鶹ÊÓƵ standards.
- Purchases with an aggregate dollar amount less than $10,000 (micro-purchases) do not require solicitation of competitive bids or quotes.
- Installment payments less than $10,000 towards a larger purchase are not considered micro-purchases
- Purchases between $10,001 and $250,000 (small purchases) require solicitation of at least 3 competitive bids or quotes, and a Â鶹ÊÓƵ Vendor Selection form must be completed prior to making a purchase.
- Documentation must be in writing from the vendors and may include screen shots from websites, copies of published price lists, and advertised pricing in established magazines or journals.
- Sealed bid purchases greater than $250,000 require that bids be publically solicited, bids should contain a firm fixed price, and it must be awarded to the lowest reasonable bidder. A minimum of three bids is required. The Â鶹ÊÓƵ Vendor Selection form must be completed prior to selecting a vendor.
- Competitive proposal purchases greater than $250,000 require that at least 3 written proposals or quotes be obtained, and either a fixed price or cost-reimbursement contract is awarded. The Â鶹ÊÓƵ Vendor Selection form must be completed prior to making a purchase.
- Sole source, or non-competitive purchases over $10,000 require only one bid or quote and completion of the Â鶹ÊÓƵ Vendor Selection form, including a justification of supplier choice, prior to making a purchase. This type of purchase may be appropriate, for example, when an item is only available from one source, when an item is essential for continuity in research or functionality with current equipment, when authorized by the federal awarding agency, or after several attempts at the competitive process, the competition is deemed inadequate.