TITLE: Title
Uniform Guidance Procurement Requirements
PURPOSE: To incorporate new federal procurement requirements into Town’s Purchasing Guidelines.
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DEPARTMENT: Finance
CONTACT INFORMATION: Arche McAdoo, 919.918.7439
INFORMATION: The U.S. Office of Budget and Management (OMB) has officially implemented its Uniform Administrative Requirements, Cost Principles, and Audit Requirements, commonly known as Uniform Guidance (UG). These requirements are effective July 1, 2018 and replace a number of other regulations and circulars (e. g, Circulars A-102, A-133, etc.). They apply to local governments and public authorities that expend federal financial assistance.
The UG requirements make significant changes in how local governments are to procure goods and services, as well as construction and repair projects. The UG requirements differ significantly from our State laws, which apply primarily to the purchase of goods and construction contracts. Some of the UG requirements are:
1. Applies to goods and services, whereas State law only covers purchase of goods;
2. Applies to all federal loans and grants, no exceptions;
3. Lower dollar thresholds (e.g., UG starts at purchases of $3,500 ($2,000 if wage rate requirements apply), which is lower than State law threshold);
4. Requires written policies and procedures for procurement; and,
5. Policies and procedures must include standards of conduct, conflicts of interest, and gift ban governing the actions of its employees, officers, or agents engaged in the selection, award, and administration of contracts.
Although local governments are expected to follow their own procurement standards; however, the most restrictive standard is to be applied regardless of the procurement method used.
The Town has adopted written Purchasing Guidelines (last revised 1/06/2010) and Contract Policy and Procedure. These two documents describe the Town’s procurement procedures and includes a section on Purchasing Ethics (i.e., conflicts of interest, gratuities, kickback, etc.). The Guidelines make reference to State procurement laws, but fail to make reference to complying with federal rules. The Contract Policy and Procedure under State/Federal section states: “. . . departments are responsible for knowing what requirements are involved that may be different from the Town’s normal requirements.”
In order to be compliant with the new UG requirements, we need to, at a minimum, modify our existing guidelines to indicate we are aware of the new UG requirements and signal our intent to comply with them. It is suggested that the following statement be added to our Purchasing Guidelines and Contract Policy and Procedure documents: “Contracts funded with federal grant funds shall be procured in a manner that is in compliance with all applicable Federal laws, policies and standards as well as state law and local policies.”
FISCAL & STAFF IMPACT: No fiscal impact at this time.
RECOMMENDATION:r That the Board of Aldermen adopt the attached resolution for compliance with UG requirements.