New Procurement Standards from. Omni Circular. Presented by: Lorena Garcia, CPPB Director of Purchasing Services

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Hilary Johns
6 years ago
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1 New Procurement Standards from OMB Uniform Guidance Omni Circular for Federal Awards Presented by: Lorena Garcia, CPPB Director of Purchasing Services McAllen Independent School District

2 OMB Uniform Guidance Create more efficiency, effectiveness and transparency Streamlines administrative requirements, cost principles, and audit requirements for Federal awards Supersedes requirements from OMB Circulars A 21, A 87, A 110, and A 122 Circulars A 89, A 102, and A 133 Circular A 50 on Single Audit Act follow up

3 Effective Date 2014

4 Applicability of Uniform Guidance Effective December 26, 2014 For Subpart F, Audit requirements For administrative requirements and cost principles for new awards and carryover funds Does not apply to grants awarded before effective date Will have grace period of one fiscal year after effective date to comply

5 Where to Find the Regulations

6 Procurement Standards

7 General Procurement Standards Must avoid purchase of unnecessary or duplicative items Emphasis added to use of Interlocal cooperative agreements for procurement of common shared goods and services Must award contracts only to responsible contractors Must maintain records regarding gprocurements Further defines time and material contracts Removed vendor protest procedure but protests remain the responsibility of non Federal entity

8 Competition Full and open competition is mandatory Contractors that develop draft specifications, requirements, statements of work and invitations for bids or proposals must be excluded from bidding

9 Methods of Procurement

10 Developed by Gilbert Tran, Office of Federal Financial Management

11 Mandatory Procurement Standards All 5 Procurement methods must comply with: Non Federal entity s Purchases must be necessary procedures in place There must be open competition to the extent required by each method Conflict of interest policy Proper documentation for the purchase

12 Simplified Acquisition Threshold The simplified acquisition threshold was raised from $100,000 to $150,000 Below $150,000 use micro and small purchases methods $150,000 or more use sealed bids and competitive proposals methods

13 Developed by Gilbert Tran, Office of Federal Financial Management

14 Micro Purchases Under $3,000 for goods and services Under $2,000 for construction To the extent practicable: Must distribute micro purchases equitably among qualified suppliers. Micro purchases may be awarded without soliciting competitive quotations if price is reasonable

15 Sole Source Purchases Inserted and may be used only when one or more of the following circumstances apply Available from single source Public exigency or emergency Authorized by TEA Competition is determined inadequate

16 Conflict of Interest Policy Must have written policy for employees engaged gg in award and administration of contracts If real or apparent conflict of interest exists, employee or board member must abstain from selection process A conflict of interest exists due to a financial interest or a tangible personal benefit from a firm considered for a contract No soliciting nor acceptance of gratuities, favors, or anything of monetary value from contractors t or subcontractors t allowed Policy must include disciplinary standards Applies to Organizational Conflict of Interest as well

17 Small and Minority Businesses WBEs and Labor Surplus Area Firms Must take affirmative steps regarding Small and Minority Businesses, WBEs and Labor Surplus Area Firms Place them on your vendor list Solicit pricing from them Break up projects or orders, if feasible Consider modifying delivery schedules Work with Small Business Administration and the Minority Business Development Agency of the Department of Commerce Require contractors to follow steps above for sub contracts

18 Required Contract Clauses Breach of contract Termination Equal Opportunity Employment Davis Bacon Act Copeland Anti Kickback Act Contract work hours and safety standards Rights to Inventions Clean Air Act Federal Water Pollution Control Act Energy Policy and Conservation Act Debarment and Suspension Byrd Anti Lobbying Amendment Recovered Materials

19 Recovered Materials Establish an affirmative procurement program for acquisition of recovered materials identified in the EPA guidelines for purchases over $10,000 Construction Products Landscaping Products Non Paper Office Products Paper and Paper Products Park and Recreation Products Transportation Products Vehicular Products Miscellaneous Products

20 Debarment and Suspension Must not award a contract t to a vendor on the excluded parties list

21 Davis Bacon Requires the payment py of locally prevailing wages and fringe benefits to laborers and mechanics employed on federal contracts in excess of $2,000 for construction, alteration or repair of public buildings or public works Contractors must be required to py pay wages not less than once a week Non Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation Award of contract conditioned upon the acceptance of the wage determination Non federal entity must report suspected violations Include Copeland Anti Kickback Kickback Act in contract

22 Next Steps Professional development on OMB Uniform Guidance for key personnel Procurement, Finance, Federal Programs, Child Nutrition Program, Internal Auditor Review OMB Uniform Guidance and update your documentation Procedures manuals Webpage Solicitation documents (general terms and conditions) Contract templates Train your end users Implement Procurement Best Practices

23 Where to go for assistance The full text of the OMB Uniform Guidance can be viewed at: Recorded webcasts and additional resources on the new OMB Uniform Guidance: FAQs issued August 29, 2014https://cfo.gov/wpcontent/uploads/2014/08/ Frequently Asked Questions.pdf FAQs issued February 12, C.F.R. 200 FAQs pdf

24 Federal Assistance

25 Questions

Maricopa County Policy/Contract Template Reference. Procurement Standards (http://www.ecfr.gov/cgi-bin/text-idx?node=2: )

Maricopa County Policy/Contract Template Reference. Procurement Standards (http://www.ecfr.gov/cgi-bin/text-idx?node=2: ) 200.317 Procurements by states. When procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non-federal funds. The