Updates to Procurement Thresholds

Updates:

  1. Threshold Increase for Purchases Without Competition,
  2. Federal Acquisition Regulation (FAR) Threshold Increases, and
  3. Timeline for the Implementation of New Requirements for Purchases above $150,000

Threshold Increase for Purchases Without Competition
Effective October 13, 2015, RCUH has raised the threshold for purchases that can be made without competition, from $3,000 to $3,500. This increase is being made in accordance with the recent Federal Acquisition Regulation (FAR) inflation adjustments. See http://www.gpo.gov/fdsys/pkg/FR-2015-07-02/pdf/2015-16206.pdf.

Federal Acquisition Regulation (FAR) Threshold Increases
The FAR inflation adjustments also resulted in increases to the (a) Cost or Pricing Data threshold (from $700,000 to $750,000), (b) Cost Accounting Standard threshold (from $700,000 to $750,000), and (c) Prime Contractor Subcontracting Plan (from $650,000 to $700,000). See http://www.gpo.gov/fdsys/pkg/FR-2015-07-02/pdf/2015-16206.pdf.

The above threshold increases only affect subcontracts/purchases made under federal prime contracts. Attachments 32(b), 32(c), and 32(d), reflect the above increases, which were made effective October 1, 2015.

Timeline for the Implementation of New Requirements for Purchases above $150,000
On October 29, 2014, RCUH made an announcement regarding the Federal Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Super Circular”). The announcement explained that the Super Circular (which became effective on December 26, 2014) allows for a grace period that defers the effective date of its new requirements for one full fiscal year, and that RCUH elected to take advantage of the grace period (which will end on June 30, 2016) with regard to certain requirements for purchases above $150,000.

It was recently announced in the Federal Register that a second year has been added to the grace period for certain requirements. Thus, the following will not be required until July 1, 2017:

  1. Public Advertising: Under the Super Circular (2 CFR § 200.320), all IFBs and RFQs above $150,000 must be publicly advertised. The Super Circular does not define public advertising. RCUH will require that all IFBs/RFQs above $150,000 be posted on the State Procurement Office’s website. This is consistent with the existing practices of other state agencies, including UH. SuperQUOTE may still be utilized for solicitations, provided that the IFB/RFQ is posted on the State Procurement Office’s solicitation website and reference is made to the SuperQUOTE listing.
  2. Sealed Bids/Quotes: Under the Super Circular (2 CFR § 200.320), all submitted bids and quotes above $150,000 must be kept sealed and confidential and must be opened publicly at the location/date/time indicated in the IFB or RFQ. Bids/quotes cannot be opened, even by project personnel, before the date/time specified in the solicitation. SuperQUOTE may still be utilized, provided that the bids/quotes obtained through SuperQUOTE are kept sealed and are not opened until the public opening date/time (we understand that UH and CommercePoint are working on this capability).
  3. Independent Cost/Price Estimate: Under the Super Circular (2 CFR § 200.323), projects must make an independent cost/price estimate before going out for bid/quote for all purchases above $150,000. Documentation of this estimate must be kept in the procurement file. The estimate may take various forms, including (a) simple market research on similar goods or services, (b) comparison to previous or similar purchases, and (c) internally estimating the general range for the purchase price.

Questions may be directed to Erin H. Yoda at (808) 956-3969 or [email protected].

Certificate of Current Cost or Pricing Data Requirement

This past August, the Office of Naval Research (ONR) conducted a Contractor Purchasing System Review (CPSR) of both UH and RCUH.  During a review of a subaward, the ONR auditor found that a project did not have a Certificate of Current Cost or Pricing Data form on file.  The UH Office of Research Services (ORS), as the processor and signor of subawards, followed up and obtained the missing certification.  In connection with the finding, ORS committed to post an announcement regarding the requirement for this certification (FAR 15.406-2) in its newsletter.  This requirement applies to subawards/subcontracts over $700,000, which are issued under federal prime contracts.  The ORS announcement can be found on pages 4 and 5 of its September 2015 newsletter.

Financial System Processing Now Available

The RCUH fiscal year-end processing has been completed. You may now approve purchase orders and payment documents online. The first check run for fiscal year 2016 will be on Monday, July 6, 2015 at 4:00 PM.

Reminder: Service dates are required for all payment transactions through Monday, August 31. For payments approved after August 7, $100,000 or greater, and with service dates of June 30 or earlier, please complete the attached “RCUH AP Worksheet”. Please include estimates or projections for invoices that have not been received as of August 7. Please email your worksheet to Liane Murai at [email protected] by Monday, August 10.

Please see the June 15, 2015 General News item for more details.

Service Dates for On-Line Payments During June 30 – August 31, 2015 Period

To: Designated UH Officials / Fiscal Officers

The fiscal year-end cut-off for RCUH on-line payment transactions is 12:00 noon on Tuesday, June 30, 2015. All on-line payment transactions processed after Tuesday, June 30, through Monday, August 31, will require service dates. The service date data entry format is mm/dd/yy.

For payments of $100,000 or greater that will be processed or approved after August 7 and with service dates of June 30, 2015 or earlier, please complete the attached RCUH RCUH AP Worksheet. Please include estimates or projections for invoices that have not been received as of August 7. Please email your worksheet to Liane Murai at [email protected] by Monday, August 10.

A service date field is provided on all payment documents and is identified with the heading “S/D”. The service date is the date goods are received or services are performed. For certain types of payments including travel completions, petty cash reimbursements, extended services, etc., the service date entered should be the last day of the period covered by the payment. However if the service period covers multiple fiscal years, allocate costs in each fiscal year incurred (i.e. if the service period is from June 1, 2015 to July 31, 2015, record cost incurred from June 1 to June 30 with a 06/30/15 service date and cost from July 1 to July 31 with a 07/31/15 service date).

This information is needed to ensure that liabilities of RCUH are properly reported as of June 30, 2015. Our auditors, Accuity LLP, will be reviewing selected documents processed during this period as part of their audit procedures. Accordingly, please be advised that we may be requesting copies of payment documents for review.

Should you have any questions, please contact Maile Brooks at 988-8340 or [email protected]
Your cooperation is greatly appreciated.

New RCUH Executive Director

The Board of Directors of the Research Corporation of the University of Hawaii is pleased to announce the appointment of Dr. Sylvia Yuen as RCUH’s new Executive Director, effective July 1, 2015.

Dr. Yuen has had a long and distinguished career at the University of Hawaii, which spans decades in both academics and administration.  She has dedicated her professional and personal life to serving Hawaii’s families and communities.

For almost 20 years, Dr. Yuen focused her efforts on building and leading the University of Hawaii’s Center on the Family, which grew under her leadership from an idea to a vibrant unit of the University. Dr. Yuen also served as the Interim Dean of UH-Mänoa’s College of Tropical Agriculture and Human Resources, the first woman to direct the College since its founding in 1907.  Because of her experience and proven abilities, Dr. Yuen was requested to serve on then UH President Greenwood’s leadership team to focus on food security and safety.

Dr. Yuen has served on the boards of directors for numerous nonprofit organizations and on various advisory committees including the Institute for Human Services, Hawaii Community Foundation, Aloha United Way, Honolulu Community Action Program, and the Federal Judicial Selection Commission.

Dr. Yuen is no stranger to RCUH, as her University career included serving as Principal Investigator of numerous projects which were serviced by RCUH.  The Board and staff look forward to welcoming Dr. Yuen to the RCUH ohana and working with her.

The Board also expresses its thanks and appreciation to Dr. Michael Hamnett, the current Executive Director, who will be retiring on June 30, 2015, for his eleven years of dedicated service.  Thank you, Mike, and all the best in your upcoming retirement!

Important Notice Regarding Distribution of Vendor Checks

Effective Monday, June 1, 2015, RCUH vendor check printing and distribution will be managed by the Accounting office at the Manoa Innovation Center (MIC). Vendor check distribution will no longer be handled by the RCUH Disbursing office.

Checks are printed at 4:00 pm daily and will be available for pick up at 9:00 am the following business day in the RCUH Accounting office in MIC Suite 200. If your pick up location is at Burns Hall Room 4020, checks will be available for pick up after 10:30 am.

Effective June 1, 2015, please contact Kathy Chung in the Accounting office at 988-8330 or [email protected] for special requests to pick up or hold checks. For stop payments and reissue check requests, continue to contact Liane Murai in the Accounting office at 988-8342 or [email protected].

RCUH Employees Who Drive Their Personal Vehicles for Work-Related Purposes

To: All RCUH Employees

Our insurance company is requiring that RCUH provide information about RCUH employees who drive their personal vehicles in the course of performing their employment duties, in order to continue our insurance coverage.  Please be aware that this includes all employees who drive, or have driven, a personal vehicle for ANY work-related purpose (this request is NOT only limited to employees whose official job descriptions include driving.

If this is applicable to you, we are requesting that you provide the following information about yourself:

  • Name
  • Driver’s license number
  • State of driver’s license issuance
  • Date of birth

For Example:

  • John Doe
  • H00123456
  • Hawaii
  • May 1, 1972

If this does not apply to you, you do not need to supply any information.

The information you provide will be handled by RCUH in accordance with the Federal Privacy Act and will only be submitted to RCUH’s insurance company for liability insurance coverage purposes.

Please:
1) fax your information to (808) 956-3822, OR
2) call in your information to (808) 956-3608.

Thank you for your cooperation.

Please direct any questions to Erin Yoda at (808) 956-3969. RCUH Financial Services Department.