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Local Government Purchasing and Contracting

Federal Procurement Requirements

Crista Cuccaro
Uniform Guidance, found at 2 C.F.R. 200, has three major components: administrative requirements (Subparts B through D), cost principles (Subpart E), and audit requirements (Subpart F). These requirements, which are issued by the Office of Management and Budget (OMB), apply to most categories of federal grant and loan funds. The information on this page provides guidance on compliance with the federal Uniform Guidance procurement requirements, found in Subpart D and specifically 2 C.F.R. 317 through 327.   
 

Pursuant to 2 C.F.R. 200.109, the OMB is obligated to review the Uniform Guidance at least every five years. The last comprehensive update was made in 2018, during which the micro-purchase and simplified acquisition thresholds were increased. OMB also amended Uniform Guidance in 2020; this amendment included some minor revisions and several consequential changes. Notably, as of November 12, 2020, there are two new sections that impose domestic preference for procurement and prohibit the use of contracting with certain telecommunications entities, found in 2 CFR 200.322 and 2 CFR 200.216 respectively. Another significant change with the 2020 revisions to Uniform Guidance is that local governments can self-certify to increase the micro-purchase threshold default from the standard of $10,000 up to $50,000, in compliance with state law. This means that a local government can self-certify up to $50,000 for Mini-Brooks Act services, or up to $30,000 for purchases. You can read more about this optional self-certification here.

 

When spending federal grant and loan funds, local governments should confirm with their federal grantor agency whether the Uniform Guidance requirements apply and what, if any, additional requirements the federal grantor agency has imposed. Local governments also should consult with their attorneys and autidors to ensure full compliance with the Uniform Guidance requirements.   

 

Uniform Guidance (full text of 2 CFR Part 200):

  •  Electronic version of Uniform Guidance available at e-CFR (click here)

 

Procurement Requirements Summaries:

 

Sample Policies and Forms:

 

Contract Provisions:

 

Presentations: 

 

FEMA Requirements and Resources:  More information on FEMA requirements is available at the School of Government's Emergency Management microsite (click here)

 

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Crista Cuccaro
Assistant Professor of Public Law and Government