Federal Grant Purchase Guidelines

The Federal Office of Management and Budget (OMB) rules in 2 CFR 200 require the District and other entities to establish procurement guidelines for purchasing with federal funds that are at least as restrictive as the OMB regulations and thresholds and that those making procurement decisions are free of conflict of interest (see specific rules below). The rules require that:

  1. The District follow the six OMB required provisions in taking all necessary affirmative steps to assure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible (200.321). Affirmative steps must include placing qualified small and minority businesses and women’s business enterprises on solicitation lists, assuring that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources and four additional requirements.
  2. Adherence to 10 contract content requirements (Appendix II to 2 CFR 200) including that “Contracts for more than the simplified acquisition threshold (currently set at $250,000) . . . must address administrative, contractual or legal remedies in instances where contractors violate or breach contract terms and provide for such sanctions and penalties as appropriate.”
  3. The District ensures contracts of $25,000 or more are not made to entities that are debarred or suspended. This is done by checking those entities at www.sam.gov and/or by certifying the entity is not debarred or suspended either by a special certification or by language in the contract itself.

The OMB Uniform Guidance includes specific provisions regarding conflict of interest and competition in procurement situations. These rules, summarized below, are in
addition to the District’s conflict of interest policy (Board Policy 2710).   For additional guidance, see OMB 200.318 and/or 200.319.

No employee, officer or agent may participate in the selection, award or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest.”

All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work or invitations for bids or requests for proposals must be excluded from competing for such procurements.”

Please contact Ann Jensen (ajensen@palomar.edu) for additional information.