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Uniform Guidance Procurement Standards Implementation Delayed

On May 17, 2017 the Office of Management and Budget delayed the implementation of the procurement standards found in 2 CFR 200.317 through 200.326. The new date allows nonfederal entities an additional year to implement the procurement standards required under the Uniform Guidance.  The standard allows for entities to delay implementation until years beginning on or after December 26, 2017 (i.e. 2018).  If an organization opts to delay implementation, the organization must document its decision in its internal procurement policies.

Even if your organization opts to delay implementation of the standard, all organizations should begin reviewing their procurement policies by asking the following questions:

  • Does the organization have written procedures for procurement transactions as required by Section 200.319(c)?
  • Is the organization using the five procurement methods outlined in Section 200.320? The five procurement methods include micro-purchases, small purchases, sealed bids, competitive proposals, and non-competitive proposals.
  • Does the organization have the required written conflict of interest policies in place (Section 200.318)?
  • Does the organization have the appropriate procurement documentation (Section 200.318(i))? An organization must maintain records to sufficiently detail the history of the procurement. At a minimum, this includes:
    • The rationale for the method of procurement
    • Selection of the contract type
    • Contractor selection or rejection, and
    • Basis for the contract price
  • Do the organization’s contracts include all the required specifications as outlined in Appendix II? This includes provisions on contracts over a certain dollar threshold related to termination and breach of contract terms. It also includes provisions related to Equal Employment Opportunity, Davis Bacon Act, debarment and suspension, anti-lobbying, and other provisions.

These procurement standards are a critical part of managing your organization’s federal funds and care should be taken to evaluate their impact on your organization. For more information or assistance with the procurement rules please contact Heather R. Cochran today.