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
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
Effective Date 2014
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
Where to Find the Regulations www.ecfr.gov
Procurement Standards
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
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
Methods of Procurement
Developed by Gilbert Tran, Office of Federal Financial Management
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
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
Developed by Gilbert Tran, Office of Federal Financial Management
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
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
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
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
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
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
Debarment and Suspension www.sam.gov Must not award a contract t to a vendor on the excluded parties list
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
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
Where to go for assistance The full text of the OMB Uniform Guidance can be viewed at: http://www.whitehouse.gov/omb/grants_docs Recorded webcasts and additional resources on the new OMB Uniform Guidance: http://cfo.gov/cofar FAQs issued August 29, 2014https://cfo.gov/wpcontent/uploads/2014/08/2014 08 29 Frequently Asked Questions.pdf 08 29 FAQs issued February 12, 2014 https://cfo.gov/wpcontent/uploads/2013/01/2 C.F.R. 200 FAQs 2 12 2014.pdf
Federal Assistance https://www.youtube.com/channel/ucl7wvvxwl4prhl6chgj0vvq
Questions lorena.garcia@mcallenisd.net