ABP 3311 Bids 2018-9-10

Background Information:

BP 3311 Bids

The current policy needs to be updated to reflect the Methods of Procurement that per Section 2 CFR 200.320 issued by Office of Management and Budget (OMB).

Section 2 CFR 200.320 Methods of Procurement to be followed.

1. Procurement by Micro-purchases. Procurement by micro-purchases is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,000. To the extent practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable. (See 2 CFR 200.67)
2. Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold, if small purchase procedures are used, price or rate quotation must be obtained from an adequate number of qualified sources. (See 2 CFR 200.88)
3. Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price.

2 CFR 200.67 Micro-Purchase. Micro purchase means a purchase of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed the micro-purchase threshold. Micro-purchase procedures comprise a subset of a non-Federal entity’s small purchase procedures. The non-Federal entity uses such procedures in order to expedite the completion of its lowest-dollar small purchase transactions and minimize the associated administrative burden and cost. The micro-purchase threshold is set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions). It is $3,000 except as otherwise discussed in Subpart 2.1 of that regulation, but this threshold is periodically adjusted for inflation.

2 CFR 200.88 Simplified acquisition threshold. Simplified acquisition threshold means the dollar amount below which a non-Federal entity may purchase property or services using small purchase methods. Non-Federal entities adopt small purchase procedures in order to expedite the purchase of items costing less than the simplified acquisition threshold. The simplified acquisition threshold is set by the Federal Acquisition Regulation at 48 CFR Subpar 2.1(Definitions) and in accordance with 41 W.S>C. 1908.0 As of the publication of the part, the simplifies acquisition threshold is $150,000, but this threshold is periodically adjusted for inflation.

The committee reviewed this BP on May 7 and June 4.  It was reviewed at a work session and presented for a first reading on Aug. 6, 2018.

Administration recommends approval of BP 3311 Bids.