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6. Previous Policy - 4.8

Previous Policy - 4.8.4 Methods of Procurement

4.8.4 Methods of Procurement

Effective date: July 1, 2025 - September 30, 2025

The recipient must have and use documented procurement procedures, consistent with the standards of this section and 2 CFR 200.317, 2 CFR 200.318, and 2 CFR 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a federal award or subaward.¹

1. Micro-Purchases.² Includes the acquisition of supplies or services for which the aggregate dollar amount does not exceed the micro-purchase threshold³ ($10,000). To the maximum extent practicable, the subrecipient should distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive price or rate quotations if the subrecipient considers the price to be reasonable based on research, experience, purchase history, or other information and documents its files accordingly.⁴
2. Small Purchases.⁵ Includes the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold⁶ but does not exceed the simplified acquisition threshold⁷ ($250,000). When small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources the recipient determines is appropriate.
3. Sealed Bids.⁸ Bids are publicly solicited procurements. A firm fixed-price contract, either lump sum or unit price, is awarded to the responsible bidder whose bid conforms with all the material terms and conditions of the invitation for bids and is the lowest in price.
   • For sealed bidding to be feasible, the following conditions should be present:⁹
     • A complete, adequate, and realistic specification or purchase description is available;
     • Two or more responsible bidders are willing and able to compete effectively for the business;
       and
     • The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made primarily on the basis of price.
   • If sealed bids are used in procurement, the following requirements apply:
     • Bids must be solicited from an adequate number of qualified sources, providing them sufficient response time prior to the date set for opening the bids;
     • The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services to enable the bidder to properly respond;
     • All bids will be opened at the time and place prescribed in the invitation for bids;
     • A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Factors such as discounts, transportation costs, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of;
       and
     • Any or all bids may be rejected if there is a sound documented reason.
4. Proposals.¹⁰ Procurement method where either a fixed price or cost-reimbursement type contract is awarded. Proposals are typically used when conditions are not appropriate for the use of sealed bids. They are awarded in accordance with the following requirements:
   • Requests for proposals must be publicized and identify all evaluation factors, along with their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical;
   • The subrecipient must have a written method for conducting technical evaluations of the proposals received and making selections;
   • Contracts must be awarded to the responsible offeror whose proposal is most advantageous to the subrecipient, with price and other factors considered.
5. Noncompetitive Procurement (Sole Source).¹¹ Procurements used in specific circumstances that can only be awarded if one or more of the following circumstances apply:
   • The acquisition of property or services for which the aggregate dollar amount does not exceed the micro-purchase threshold;
   • The item is available only from a single source;
   • Public exigency or emergency need for the property or service will not permit the delay that would result from publicizing a competitive solicitation;
   • DOL-ETA or DWD-DET expressly authorizes a noncompetitive procurement in response to a written request from the subrecipient;
     or
   • After solicitation of a number of sources, competition is determined to be inadequate.

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• ¹ 2 CFR 200.320
• ² 2 CFR 200.320(a)(1)
• ³ 2 CFR 200.1 "Micro purchase threshold"
• ⁴ 2 CFR 200.320(a)(1)(ii)
• ⁵ 2 CFR 200.320(a)(2)
• ⁶ 48 CFR 2.101 "Micro purchase threshold"
• ⁷ 48 CFR 2.101 "Simplified acquisition threshold"
• ⁸ 2 CFR 200.320(b)(1)
• ⁹ 2 CFR 200.320(b)(1)(i)
• ¹⁰ 2 CFR 200.320(b)(1)(ii)(E)
• ¹¹ 2 CFR 200.320(c)