PURCHASING UNDER A FEMA AWARD: INFORMAL METHODS OF PROCUREMENT BY
NON-STATE ENTITIES
[https://www.fema.gov/fact-sheet/purchasing-under-fema-award-informal-methods-procurement-non-state-entities]


Release Date: 
Aug 25, 2022 

This fact sheet provides key information for non-state entities using
informal methods of procurement for purchasing goods or services under
a FEMA grant award or declaration issued on or after November 12,
2020. It also provides checklists specific to non-state entities to
assist complying with the federal procurement standards at 2 C.F.R. §
200.320(a)
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d#p-200.320(a)].

METHODS OF PROCUREMENT

Once a non-state entity, which include local governments, Tribal and
nonprofit organizations, has defined their procurement requirements
and is ready to conduct their purchase, the federal procurement rules
at 2 C.F.R. § 200.320
[https://www.ecfr.gov/current/title-2/section-200.320] require that it
uses one of the five allowable methods of procurement for purchasing
goods and services. These methods of procurement are divided into
three main categories, (informal, formal, and noncompetitive) and they
include: micro-purchases, small purchases, sealed bids, proposals, and
noncompetitive procurement also commonly referred to as “sole
sourcing.” A non-state entity must choose a method based on the
contract amount or type of services to be procured.

This fact sheet will focus on the rules applicable for non-state
entities using the INFORMAL methods of procurement, which include
micro purchases and small purchases. NOTE: This fact sheet is meant to
aid in avoiding the frequent mistakes with these methods and is not
inclusive of all rules. For information on the methods of procurement,
see Chapter 5: Methods of Procurement
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=52]
of the Procurement Disaster Assistance Team (PDAT) Field Manual.

INFORMAL METHODS

When the estimated value of a procurement for goods or services is
below the federal simplified acquisition threshold (SAT), which is
$250,000,the federal procurement rules at 2 C.F.R. § 200.320(a)
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d#p-200.320(a)]
allow non-state entities to use informal methods of procurement. The
informal methods, which include micro-purchases and small purchases,
allow for expedited procurement processes, and minimize the
administrative burden and cost. When using an informal method of
procurement, a non-state entity must document its determination that
the price is fair and reasonable based on research, experience,
purchase history, or other information used for justification.
Additionally, a non-state entity must award contracts only to
responsible contractors possessing the ability to perform successfully
under the terms and conditions of the solicitation and contract.
Matters to consider include: contractor integrity, compliance with
public policy, record of past performance, and financial and technical
resources as defined at 2 C.F.R. § 200.318(h)
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200#p-200.318(h)].

It is also important to note that a non-state entity must not divide
or reduce the size of its procurement to avoid the additional
procurement requirements applicable to larger acquisitions. _See
_Chapter 3: General Procurement Under Grant Standards
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=29]
of the PDAT Field Manual.

MICRO-PURCHASES

Procurement by micro-purchase is the acquisition of supplies,
property, or services where the aggregate dollar amount does not
exceed the micro-purchase threshold. The micro-purchase threshold is
$10,000. Micro-purchase procedures comprise a subset of a non-state
entity’s small purchase procedures. A non-state entity uses such
procedures to expedite the completion of its lowest-dollar small
purchase transactions and minimize the associated administrative
burden and cost. _See _Procurement by Micro-Purchases in Chapter 5:
Methods of Procurement
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=52]
of the PDAT Field Manual.

Non-state entities are allowed to self-certify in order to use
micro-purchase procedures up to $50,000 on an annual basis, provided
that certain conditions at 2 C.F.R. § 200.320(a)(1)(iv)
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d#p-200.320(a)(1)(iv)]
are met and the non-state entity must maintain documentation available
to FEMA and auditors. The self-certification must include a
justification, clear identification of the threshold, and supporting
documentation of any of the following:

 	* Qualification as a low-risk auditee in accordance with the
criteria in 2 C.F.R. § 200.520 
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-F/subject-group-ECFRea73e47c9a286e6/section-200.520]for
the most recent audit;
 	* An annual internal institutional risk assessment to identify,
mitigate, and manage financial risks; or,
 	* For public institutions, a higher threshold consistent with state
law.

MICRO-PURCHASE CHECKLIST

This checklist is not an exhaustive list of all procurement
requirements and may be used for procurements up to $10,000. Non-state
entities can use this checklist for a supplemental review for
compliancy; however, they must still comply with their procurement
policies and procedures and ensure compliance with the federal
requirements at 2 C.F.R. § 200.318 – 200.327
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d].
If you answered “No” to any of the below questions, your contract
may be at risk of noncompliance with federal procurement rules.

REQUIREMENT

STATUS

SUPPORTING DOCUMENTATION

Is the price fair and reasonable?

When practicable, divide micro-purchases equitably among qualified
suppliers.

Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Evidence of market research  [static image of an empty checkbox]

Short narrative on letterhead  [static image of an empty checkbox]

Other (ex: receipt, invoice, etc.)  [static image of an empty
checkbox]

If using a time and materials contract
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=37]
type, were all the steps below taken?

 	* Justified in writing that no other contract type was suitable
 	* Included a contract ceiling (or do not exceed amount) that the
contractor exceeds at their own risk
 	* Maintained a high degree of oversight

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

T&M contract justification  [static image of an empty checkbox]

Contract document with ceiling amount included  [static image of an
empty checkbox]

Documentation that substantiates a high degree of contractor
oversight  [static image of an empty checkbox]

Have you ensured that you did not enter a cost-plus-percentage-of-cost
contract?

Cost-plus-percentage-of-cost contracts
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=80]
are PROHIBITED by federal procurement rules.

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Contract  [static image of an empty checkbox]

Pricing schedule  [static image of an empty checkbox]

Is the contractor able to perform successfully under the terms and
conditions of the solicitation or contract or otherwise responsible?

Read about contractor responsibility determination
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=31].

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Determination of contractor responsibility  [static image of an empty
checkbox]

REQUIRED CONTRACT PROVISIONS

REQUIREMENT

STATUS

SUPPORTING DOCUMENTATION

 		If the contract is for construction work, have you included the
required Equal Employment Opportunity
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=12]
Clause?

Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract is for construction work and more than $2,000, have
you included the required Davis-Bacon Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=15]
Clause?

NOTE: This clause only applies to the EMPG
[https://www.fema.gov/grants/preparedness/emergency-management-performance],
HSGP [https://www.fema.gov/grants/preparedness/homeland-security],
NSGP [https://www.fema.gov/grants/preparedness/nonprofit-security],
THSGP
[https://www.fema.gov/grants/preparedness/tribal-homeland-security],
PSGP [https://www.fema.gov/grants/preparedness/port-security], TSGP
[https://www.fema.gov/grants/preparedness/transit-security], IPR
[https://www.fema.gov/grants/preparedness/intercity-passenger-rail-amtrak],
and HHPD
[https://www.fema.gov/emergency-managers/risk-management/dam-safety/rehabilitation-high-hazard-potential-dams].

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract is for construction work and more than $2,000, have
you included the required Copeland Anti-Kickback Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=16]
Clause?

NOTE: This clause is ONLY required in situations where the Davis Bacon
Act also applies.

Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract meets the definition of “funding agreement,” have
you included the required Rights to Inventions Made Under a Contract
or Agreement
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=20]
clause?

NOTE: This clause is NOT required under the PA
[https://www.fema.gov/assistance/public], HMGP
[https://www.fema.gov/grants/mitigation/hazard-mitigation], FMAG
[https://www.fema.gov/assistance/public/fire-management-assistance],
CCP
[https://www.fema.gov/assistance/individual/disaster-survivors#counseling],
DCM
[https://www.fema.gov/assistance/individual/disaster-survivors#case],
or IHP-ONA [https://www.fema.gov/assistance/individual/housing]
programs, as FEMA Awards under these programs do not meet the
definition of “funding agreement”.

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

For contracts, including any purchase orders, have you included the
required Prohibition on Contracting for Covered Telecommunications
Equipment or Services
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=28]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

 		For contracts, including any purchase orders, have you included the
required Domestic Preferences for Procurements
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=31]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

Have you considered including the FEMA recommended provisions outlined
in PDAT’s Contract Provision’s Guide
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf]?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

 		NOTE: This is not a requirement and contracts will not be deemed
noncompliant for failure to include these provisions.

SMALL PURCHASES

Procurement by small purchase procedures is a relatively simple method
for securing services, supplies, or property that does not exceed the
federal SAT (currently $250,000) or the non-state entities’
applicable state, local, or Tribal thresholds (whichever is lower).
Contracts resulting from small purchase procedures should be fixed
price or not-to-exceed cost-reimbursement contracts with assurances
that the scope of work can be completed for less than the SAT. The
small purchase procedures require that non-state entities obtain price
rates or quotations from an adequate number of qualified sources. An
adequate number of sources will be determined by the non-state entity
and will depend on the facts and circumstances of the procurement.
_See  _Procurement by Small Purchases in Chapter 5: Methods of
Procurement
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=53]
of the PDAT Field Manual.

SMALL PURCHASE CHECKLIST

This checklist is not an exhaustive list of all procurement
requirements. Non-state entities can use this checklist for a
supplemental review for compliancy; however, they must still comply
with their procurement policies and procedures and ensure compliance
with the federal requirements at 2 C.F.R. § 200.318 – 200.327
[https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d].
If you answered “No” to any of the below questions, your contract
may be at risk of noncompliance with federal procurement rules. 

REQUIREMENT

STATUS

SUPPORTING DOCUMENTATION

 		Is the price fair and reasonable?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Evidence of market research  [static image of an empty checkbox]

Short narrative on letterhead  [static image of an empty checkbox]

Other_ (ex: receipt, invoice, etc.)_  [static image of an empty
checkbox]

Have you obtained price or rate quotations from an adequate number of
qualified sources?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Price or rate quotations from an adequate number of sources  □

If using a time and materials contract
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=37]
type, were all the steps below taken?

 	* Justified in writing that no other contract type was suitable
 	* Included a contract ceiling (or do not exceed amount) that the
contractor exceeds at their own risk
 	* Maintained a high degree of oversight

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

T&M contract justification  [static image of an empty checkbox]

Contract document with ceiling amount included  [static image of an
empty checkbox]

Documentation that substantiates a high degree of contractor
oversight  [static image of an empty checkbox]

Have you ensured that you did not enter a cost-plus-percentage-of-cost
contract?

Cost-plus-percentage-of-cost contracts
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=80]
are PROHIBITED by the federal procurement rules.

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Contract  [static image of an empty checkbox]

Pricing schedule  [static image of an empty checkbox]

Is the contractor able to perform successfully under the terms and
conditions of the solicitation or contract or otherwise responsible?

Read about contractor responsibility determination
[https://www.fema.gov/sites/default/files/documents/fema_PDAT-field-manual_102021.pdf#page=31].

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

Determination of contractor responsibility  [static image of an empty
checkbox]

Contract with applicable S&D clause  [static image of an empty
checkbox]

REQUIRED CONTRACT PROVISIONS

REQUIRED CONTRACT PROVISIONS

STATUS

SUPPORTING DOCUMENTATION

 		If the contract is more than $10,000, have you included a
Termination for Cause and Convenience
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=11]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

 		 
Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

 		If the contract is for construction work, have you included the
required Equal Employment Opportunity
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=12]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract is for construction work and more than $2,000, have
you included the required Davis-Bacon Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=15]
Clause?

NOTE: This clause only applies to the EMPG
[https://www.fema.gov/grants/preparedness/emergency-management-performance],
HSGP [https://www.fema.gov/grants/preparedness/homeland-security],
NSGP [https://www.fema.gov/grants/preparedness/nonprofit-security],
THSGP
[https://www.fema.gov/grants/preparedness/tribal-homeland-security],
PSGP [https://www.fema.gov/grants/preparedness/port-security], TSGP
[https://www.fema.gov/grants/preparedness/transit-security], IPR
[https://www.fema.gov/grants/preparedness/intercity-passenger-rail-amtrak],
and HHPD
[https://www.fema.gov/emergency-managers/risk-management/dam-safety/rehabilitation-high-hazard-potential-dams].

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract is for construction work and more than $2,000, have
you included the required Copeland Anti-Kickback Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=16]
Clause?

NOTE: This clause is ONLY required in situations where the Davis Bacon
Act also applies.

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract meets the definition of “funding agreement,” have
you included the required Rights to Inventions Made Under a Contract
or Agreement
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=20]
clause?
This clause is NOT required under the PA
[https://www.fema.gov/assistance/public], HMGP
[https://www.fema.gov/grants/mitigation/hazard-mitigation], FMAG
[https://www.fema.gov/assistance/public/fire-management-assistance],
CCP
[https://www.fema.gov/assistance/individual/disaster-survivors#counseling],
DCM
[https://www.fema.gov/assistance/individual/disaster-survivors#case],
or IHP-ONA [https://www.fema.gov/assistance/individual/housing]
programs, as FEMA Awards under these programs do not meet the
definition of “funding agreement."

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

 		If the contract involves the employment of mechanics or laborers,
and is in excess of $100,000, have you included the required Contract
Work Hours and Safety Standards Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=18]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

 		If the contract is in excess of $150,000, have you included a Clean
Air Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=21]
clause?

Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

 		If the contract is in excess of $150,000, have you included a
Federal Water Pollution Control Act
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=21]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract is in excess of $25,000, have you included a
Suspension and Debarment
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=22]
clause?
See 2 C.F.R. § 180 for additional requirements.

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

If the contract is greater than $100,000, have you included the
required Byrd Anti-Lobbying Clause and Certification
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=24]
to be signed and filed by the contractor?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

Have you included a Recovered Materials
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=27]
clause?
NOTE: Only applies if an NFE is a state or political subdivision of a
state; work involves the use of materials, and the contract is for
more than $10,000. Not applicable for Tribal governments and nonprofit
organizations.

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

For contracts, including any purchase orders, have you included the
required Prohibition on Contracting for Covered Telecommunications
Equipment or Services
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=28]
clause?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

 		For contracts, including any purchase orders, have you included the
required Domestic Preferences for Procurements
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf#page=31]
clause?

Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

Indicate the page number where a FEMA representative can locate the
clause in contract document.

Page:

Have you considered including the FEMA recommended provisions outlined
in PDAT’s Contract Provision’s Guide
[https://www.fema.gov/sites/default/files/documents/fema_contract-provisions-guide_6-14-2021.pdf]?

 Yes [static image of an empty checkbox]

No  [static image of an empty checkbox]

N/A  [static image of an empty checkbox]

 		NOTE: This is not a requirement and contracts will not be deemed
noncompliant for failure to include these provisions.