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<br />Page 20 of 22 <br />K2871 Grant Agreement <br />The non-Federal entity must use one of the following methods of procurement. <br />(a) Procurement by micro-purchases. Procurement by micro-purchase is the acquisition of supplies or services, the <br />aggregate dollar amount of which does not exceed the micro-purchase threshold (§200.67 Micro-purchase). To the extent <br />practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may <br />be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable. <br />(b) Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal <br />procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition <br />Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of <br />qualified sources. <br />(c) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum <br />or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the <br />invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction, if the <br />conditions in paragraph (c)(1) of this section apply. <br />(1) In order for sealed bidding to be feasible, the following conditions should be present: <br />(i) A complete, adequate, and realistic specification or purchase description is available; <br />(ii) Two or more responsible bidders are willing and able to compete effectively for the business; and <br />(iii) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made <br />principally on the basis of price. <br />(2) If sealed bids are used, the following requirements apply: <br />(i) Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to <br />the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised; <br />(ii) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or <br />services in order for the bidder to properly respond; <br />(iii) All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal <br />governments, the bids must be opened publicly; <br />(iv) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where <br />specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in <br />determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates <br />that such discounts are usually taken advantage of; and <br />(v) Any or all bids may be rejected if there is a sound documented reason. <br />(d) Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than <br />one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used <br />when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply: <br />(1) Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any <br />response to publicized requests for proposals must be considered to the maximum extent practical; <br />(2) Proposals must be solicited from an adequate number of qualified sources; <br />(3) The non-Federal entity must have a written method for conducting technical evaluations of the proposals received and <br />for selecting recipients; <br />(4) Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price <br />and other factors considered; and <br />(5) The non-Federal entity may use competitive proposal procedures for qualifications-based procurement of <br />architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified <br />competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a <br />selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of <br />services though A/E firms are a potential source to perform the proposed effort. <br />(e) [Reserved] <br />(f) Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through <br />solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply: <br />(1) The item is available only from a single source; <br />(2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; <br />(3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a <br />written request from the non-Federal entity; or <br />(4) After solicitation of a number of sources, competition is determined inadequate. <br />[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 54409, Sept. 10, 2015] <br />§200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms.