05-12-26 City Council Workshop Packet

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20 216348v2 Appendix C: Federal Grant Procurement Requirements The OMB Uniform Guidance went into effect on December 26, 2014 and applies to awards or funding increments issued on or after that date. Purchases funded by federal grant funds must adhere to regulations found in Uniform Guidance as a condition of receiving funds and to meet annual audit compliance. The OMB Memo M-18-18 increased the micro-purchase threshold to $10,000 and the simplified acquisition threshold to $250,000 (note, since the State of Minnesota threshold is $175,000, the City will follow the lower threshold from the State of Minnesota). Methods of Procurement (see CFR §200.320): • Micro-purchases - the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $10,000. Use your own judgment in identifying potential suppliers. Federal guidance asks that, if possible, spread purchases between multiple suppliers. When possible, attempt to get discounts. If you are uncertain as to whether or not a purchase qualifies as a micro purchase or a small purchase, please contact the finance department prior to making the purchase. For example, installment payments less than $10,000 towards a total purchase price greater than $10,000 do not count as micro purchases • Small purchase - the acquisition of supplies, services or equipment in the range of $10,001 to $175,000. Price or rate quotations must be obtained from an adequate number or qualified sources prior to making a purchase. A purchase order documenting at least 2 price quotes and the basis for vendor selection prior to making a purchase is required. Documentation needs to be in writing from the vendors and can include screen shots from websites, copies of published price lists and advertised pricing in established magazines or journals. This documentation should be attached to the purchase order and the buyer should not make the purchase until the purchase order has been fully approved. If a purchase order is not received prior to an accounts payable voucher, the Finance department will have the authority to reject the invoice from being paid against federal funds. If you require assistance in obtaining 2 quotes, please contact the Finance department. • Sealed bids - For acquisitions costing more than $175,000, bids are publicly solicited and a firm fixed price contract is awarded to the responsible bidder whose bid is the lowest price. See appendix B for more detail. • Competitive proposals - For acquisitions costing more than $175,000, conducted with more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the City with price and other factors considered. • Noncompetitive proposals - procurement through solicitation of a proposal from only one source. A waiver must be granted by submitting the Single/Sole Source Justification Form (see Appendix D).