Federal Procurement Method

Procurement process and required documentation information sheet

The Federal Bid Threshold is $250,000, however federal procurement also requires us to follow the more stringent limit. Therefore, in California we must use our state threshold. California’s Bid Threshold is updated annually by the State Superintendent of Schools (Public Contract Code 20111).  

Procurement Method §200.320	Goods/Supplies	Services
Micro-purchase	Less than $50,000*	Less than $50,000
Small Purchase	$50,001 – up to Bid Threshold	$50,001 – up to Bid Threshold
Sealed Bids	Bid Threshold+	Bid Threshold+
Competitive Proposals Professional services are not exempt from formal bidding.	N/A	Bid Threshold+
Non-competitive	One of more of the following must apply: • Item available only from a single source. • Public emergency will not permit a delay resulting from a bid process. • Awarding agency approval, Federal agency or pass-through entity approves it. • A solicitation results in an inadequate number of bidders	One of more of the following must apply: • Item available only from a single source. • Public emergency will not permit a delay resulting from a bid process. • Awarding agency approval, Federal agency or pass-through entity approves it. • A solicitation results in an inadequate number of bidders

Adoption of Resolution No. 22-01 (08/10/2022) Fresno Unified School District, pursuant to 2 C.F.R. section 200.320, self-certifies the micro-purchase threshold to $50,000

Procurement Procedures for Federal Expenditures

Overview

To provide our District staff with an understanding of what requirements govern the process of making procurement decisions in regards to expenditures that are funded by Federal monies. Procedures are in place to comply with District Board Policy, Education Code, 2 CFR 200 Federal regulations, and Civil/Public Code.

Code of Ethics

In corroboration with Board Policy 4219.21 Code of Ethics, individuals involved in procurement responsibilities must do so free from conflict of interest. Uniform Guidance 2 CFR 200.318(c) (1) states that no employee, officer, or agent of the District shall participate in, nor attempt to influence the selection, award, or administration of a contract if any real or apparent conflict of interest exists. Please refer to Board Policy 4219.21 Code of Ethics for application of ethical behavior, identification of conflict of interest, and procedures for reporting unethical behavior.

Procedures

In corroboration with Board Policy 3230, purchases that utilize federal grant funds (excluding construction and public works projects) require special attention.  See list below to help identify if the purchase is funded by a federal program.  As a rule of thumb, any Resource code between 3000 and 5999 identify federal programs, see table below. The Purchasing Department shall comply with the following standards (2 CFR 200.317-200.326 & Appendix II of Part 200) in the procurement of federally funded goods and services.

In the new Uniform Guidance, there are five general standards:  

• Micro-purchases:  Less than $50,000 ($2,000 for purchases subject to the Davis-Bacon Act)
  • No competitive quotes required
  • Distribute purchases equally among qualified suppliers. (to the extent practicable)

• Small-purchases:  Between $50,001 and $250,000
  • Rate quotes must be obtained from an “adequate” number of qualified sources (e.g. three sources)
  • Quotes can be obtained from suppliers or from public websites

• Sealed bids:  More than $250,000 (Preferred for construction projects)
  • Two or more qualified bidders willing and able to compete effectively for business
  • Publicly advertised and a complete, adequate, and realistic specification/description is available
  • Lowest bidder for the fixed price (lump sum or unit cost) is awarded primarily on price

• Competitive proposals: More than $250,000
  • Written policy for conducting technical evaluations of reviewing proposals is made public to vendors that are interested.
  • Most advantages bid wins, price and other factors are considered

The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:

                1.            Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;

                2.            Proposals must be solicited from an adequate number of qualified sources; and

                3.            Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered.

The District may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services.  It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

• Sole Source:  Any amount, must meet one of the following four requirements and AR 3323
  • Good/Service is only available from single source
  • Only one source can provide the good/service in the time frame required
  • Written pre-approval from the Federal awarding agency
  • Competition is deemed inadequate, after solicitation attempts through one of the other methods

• Any purchase of $25,000.00 or more requires verification through the System for Award Management (www.sam.gov) that the supplier is not excluded or disqualified by the federal government.

• Special Note: Whenever a discrepancy exists between these procedures and government codes, code prevails.