Update to RCUH Policies: 2.111 Purchases Over $150,000 (Federal Contract Funds) and $250,000 (Federal Grant/Cooperative Agreement Funds); 2.101 Source Selection Methods; and 2.204 Services Agreements

Tuesday, June 26, 2018

Following our June 18, 2018 announcement regarding changes to the new RCUH Policy 2.111, the Office of Management and Budget (“OMB”) released a memo confirming that OMB will grant an exception to permit the application of a simplified acquisition threshold amount of $250,000 for federal grant and cooperative agreement funds.  As such, RCUH will be utilizing a $250,000 threshold for federal grant and cooperative agreement funds, and a $150,000 threshold for federal contract funds (the $150,000 threshold for federal contract funds will remain in place until the $250,000 amount is adopted by the Federal Acquisition Regulation (“FAR”)).  Refer to Policy 2.111 Purchases Over $150,000 (Federal Contract Funds) and $250,000 (Federal Grant/Cooperative Agreement Funds), which shall be effective July 1, 2018.

Reminder: If it is unknown at the time of solicitation whether the purchase price will exceed $150,000 (federal contract funds) or $250,000 (federal grant/cooperative agreement funds), projects should follow the requirements of Policy 2.111 as a safety precaution, to avoid having to cancel and redo solicitations.

In addition to the new Policy 2.111, the following changes are also being made to existing policies, effective July 1, 2018:

  1. Policy 2.101 Source Selection Methods (Sections I. and II.)
  • Clarifying that:
    • Contractors assisting in the development of specifications for a solicitation must be excluded from competing in the solicitation;
    • Projects are encouraged to use federal excess and surplus property when feasible to reduce project costs; and
    • Unreasonable restrictions should not be placed on competition.
  1. Policy 2.204 Services Agreements (Sections I. and III.D.)
  • Describes fixed-price contracts and time and materials contracts;
  • Describes restrictions on the use of time and materials contracts, including a required price ceiling (as required by 2 CFR § 200.318); and
  • Clarifying the contract amendment execution process.

Questions may be directed to Erin Yoda, RCUH Procurement and Disbursing Manager, at 808-956-3969 or [email protected].