SPONSORED PROGRAMS:
PROCUREMENT STANDARDS FOR FEDERAL GRANTS AND CONTRACTS

The University's Purchasing Department assists departments in the procurement of necessary goods and services in accordance with the University's Purchasing Policies and Procedures. In addition, procurement standards as outlined in OMB Circular A110-Subpart C Sections __.41 through __.48. must be followed for all purchases made under federal grants and contracts. These standards consist of, but are not limited to, the following guidelines:

• Observance of appropriate conflict of interest and gifts/gratuities policies
• Observance of appropriate procurement procedures to ensure all transactions are conducted in a manner which provides, to the maximum extent practical, open and free competition. Competitive bidding will be performed for all procurements in which the aggregate expenditure is expected to exceed $5,000.
• Inclusion of appropriate contract provisions for procurement of materials or services with federal funds, as defined and required by OMB Circular A110-Subpart C Sections __.41 through __.48.
• Cost-plus-a-percentage-of-cost or "percentage of construction cost" method of contracting is prohibited.

Procedures

The University's Purchasing Department will determine the supplier for each procurement based on value analysis, including contractor integrity, past performance and financial/technical resources. The requisitioning department may suggest possible suppliers.

When competitive bids are required, the requisitioning department will provide the specifications for the needed materials. The Purchasing Department will, in conjunction with the department, issue a request for quotation, analyze the responses, determine the proper supplier, and award the bid.

All proposed sole source contracts over $5,000 will require written justification from the requisitioning department and prior approval of the federal sponsoring agency.

The requisitioning department will comply with documented plans for project implementation and avoid procuring duplicative items. Equipment lease/purchase alternatives will also be examined.

Positive efforts will be made to utilize small business and minority-owned business sources of supplies and services.

Procurement files for purchases in excess of $10,000 will be maintained and include:
a. Basis for contractor selection
b. Justification for lack of competitive when competitive bids or offers are not obtained.
c. Basis for award cost of price.

Follow-up will be done by the Purchasing Department, in conjunction with the requisitioning department, to ensure adherence to the terms, conditions and specifications of contractual purchases.