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Town of Colchester/Colchester Board of Education
Purchasing Policy Addendum
Federal Uniform Guidance
When procuring property and services under a Federal award (including federal funds that are passed through
the State of Connecticut), the Town of Colchester/Colchester Board of Education will follow the federal
procurement standards as set forth in the Code of Federal Regulations (CFR) Sections 200.318 to 200.327.
Objectives of the procurement standards are to ensure the following:
• Oversight must be maintained to ensure contractors perform in accordance with the terms, conditions,
and specifications of their contracts or purchase orders.
• Contracts are awarded only to responsible contractors possessing the ability to perform successfully
under the terms and conditions of a proposed procurement.
• Records must be sufficiently maintained to detail the history of procurement.
• Transactions are conducted in a manner providing full and open competition.
• Potential bidders are not precluded from qualifying during the solicitation period.
• Avoid acquisition of unnecessary or duplicative items.
In addition, the Town of Colchester/Colchester Board of Education purchasing procedures will include the
following requirements in accordance with the CFR.
CFR Section Requirement Procedures
(a), The non-Federal entity must take all necessary affirmative
(b) steps to assure that minority businesses, women's business
enterprises, and labor surplus area firms are used when
possible including:
(1) Placing qualified small and minority businesses and women's
business enterprises on solicitation lists;
(2) Assuring that small and minority businesses, and women's
business enterprises are solicited whenever they are potential
sources;
Contracting with small and (3) Dividing total requirements, when economically feasible, into
minority businesses, women's smaller tasks or quantities to permit maximum participation by
200.321
business enterprises, and small and minority businesses, and women's business
labor surplus area firms. enterprises;
(4) Establishing delivery schedules, where the requirement
permits, which encourage participation by small and minority
businesses, and women's business enterprises;
(5) Using the services and assistance, as appropriate, of such
organizations as the Small Business Administration and the
Minority Business Development Agency of the Department of
Commerce; and
(6) Requiring the prime contractor, if subcontracts are to be let, to
take the affirmative steps listed in paragraphs (b)(1) through (5)
of this section.
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CFR Section Requirement Procedures
(a) As appropriate and to the extent consistent with law, the non-
Federal entity should, to the greatest extent practicable under a
Federal award, provide a preference for the purchase,
acquisition, or use of goods, products, or materials produced in
Domestic preferences for
200.322 the United States (including but not limited to iron, aluminum,
procurements
steel, cement, and other manufactured products). The
requirements of this section must be included in all subawards
including all contracts and purchase orders for work or products
under this award.
A non-Federal entity that is a state agency or agency of a
Procurement of Recovered political subdivision of a state and its contractors must comply
200.323
Materials with section 6002 of the Solid Waste Disposal Act, as amended
by the Resource Conservation and Recovery Act.
(a) The non-Federal entity must perform a cost or price analysis in
connection with every procurement action in excess of the
Simplified Acquisition Threshold including contract
modifications. The method and degree of analysis is dependent
on the facts surrounding the particular procurement situation,
but as a starting point, the non-Federal entity must make
independent estimates before receiving bids or proposals.
(b) The non-Federal entity must negotiate profit as a separate
element of the price for each contract in which there is no price
competition and in all cases where cost analysis is performed.
To establish a fair and reasonable profit, consideration must be
given to the complexity of the work to be performed, the risk
200.324 Contract cost and price borne by the contractor, the contractor's investment, the
amount of subcontracting, the quality of its record of past
performance, and industry profit rates in the surrounding
geographical area for similar work.
(c) Costs or prices based on estimated costs for contracts under
the Federal award are allowable only to the extent that costs
incurred or cost estimates included in negotiated prices would
be allowable for the non-Federal entity under subpart E of this
part. The non-Federal entity may reference its own cost
principles that comply with the Federal cost principles.
(d) The cost plus a percentage of cost and percentage of
construction cost methods of contracting must not be used.
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CFR Section Requirement Procedures
(a) The non-Federal entity must make available, upon request of
the Federal awarding agency or pass-through entity, technical
specifications on proposed procurements where the Federal
awarding agency or pass-through entity believes such review is
needed to ensure that the item or service specified is the one
being proposed for acquisition. This review generally will take
place prior to the time the specification is incorporated into a
solicitation document. However, if the non-Federal entity desires
to have the review accomplished after a solicitation has been
developed, the Federal awarding agency or pass-through entity
Federal awarding agency or may still review the specifications, with such review usually
200.325 limited to the technical aspects of the proposed purchase.
pass-through entity review
(b) The non-Federal entity must make available upon request, for
the Federal awarding agency or pass-through entity pre-
procurement review, procurement documents, such as
requests for proposals or invitations for bids, or independent
cost estimates
(c) The non-Federal entity is exempt from the pre-procurement
review in paragraph (b) of this section if the Federal awarding
agency or pass-through entity determines that its procurement
systems comply with the standards of this part.
For construction or facility improvement contracts or
subcontracts exceeding the Simplified Acquisition Threshold,
the Federal awarding agency or pass-through entity may accept
the bonding policy and requirements of the non-Federal entity
provided that the Federal awarding agency or pass-through
entity has made a determination that the Federal interest is
adequately protected. If such a determination has not been
made, the minimum requirements must be as follows:
(a) A bid guarantee from each bidder equivalent to five percent of
the bid price. The “bid guarantee” must consist of a firm
commitment such as a bid bond, certified check, or other
negotiable instrument accompanying a bid as assurance that
200.326 Bonding requirements. the bidder will, upon acceptance of the bid, execute such
contractual documents as may be required within the time
specified.
(b) A performance bond on the part of the contractor for 100
percent of the contract price. A “performance bond” is one
executed in connection with a contract to secure fulfillment of all
the contractor's requirements under such contract.
(c) A payment bond on the part of the contractor for 100 percent of
the contract price. A “payment bond” is one executed in
connection with a contract to assure payment as required by
law of all persons supplying labor and material in the execution
of the work provided for in the contract.
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CFR Section Requirement Procedures
The non-Federal entity's contracts must contain the applicable
provisions described in appendix II to this part.
(A) Contracts for more than the simplified acquisition threshold,
which is the inflation adjusted amount determined by the Civilian
Agency Acquisition Council and the Defense Acquisition
Regulations Council (Councils) as authorized by 41 U.S.C.
1908, must address administrative, contractual, or legal
remedies in instances where contractors violate or breach
contract terms, and provide for such sanctions and penalties as
appropriate.
(B) All contracts in excess of $10,000 must address termination for
cause and for convenience by the non-Federal entity including
the manner by which it will be effected and the basis for
settlement.
(C) Equal Employment Opportunity. Except as otherwise provided
under 41 CFR Part 60, all contracts that meet the definition of
“federally assisted construction contract” in 41 CFR Part 60-1.3
must include the equal opportunity clause provided under 41
CFR 60-1.4(b)
(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When
required by Federal program legislation, all prime construction
200.327 Contract provisions contracts in excess of $2,000 awarded by non-Federal entities
must include a provision for compliance with the Davis-Bacon
Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by
Department of Labor regulations (29 CFR Part 5, “Labor
Standards Provisions Applicable to Contracts Covering
Federally Financed and Assisted Construction”).
(E) Contract Work Hours and Safety Standards Act (40 U.S.C.
3701-3708). Where applicable, all contracts awarded by the non-
Federal entity in excess of $100,000 that involve the
employment of mechanics or laborers must include a provision
for compliance with 40 U.S.C. 3702 and 3704, as supplemented
by Department of Labor regulations (29 CFR Part 5).
(F) Rights to Inventions Made Under a Contract or Agreement. If the
Federal award meets the definition of “funding agreement”
under 37 CFR §401.2 (a) and the recipient or subrecipient
wishes to enter into a contract with a small business firm or
nonprofit organization regarding the substitution of parties,
assignment or performance of experimental, developmental, or
research work under that “funding agreement,” the recipient or
subrecipient must comply with the requirements of 37 CFR Part
401, “Rights to Inventions Made by Nonprofit Organizations and
Small Business Firms Under Government Grants, Contracts
and Cooperative Agreements,” and any implementing
regulations issued by the awarding agency.
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CFR Section Requirement Procedures
(G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water
Pollution Control Act (33 U.S.C. 1251-1387), as amended -
Contracts and subgrants of amounts in excess of $150,000
must contain a provision that requires the non-Federal award to
agree to comply with all applicable standards, orders or
regulations issued pursuant to the Clean Air Act (42 U.S.C.
7401-7671q) and the Federal Water Pollution Control Act as
amended (33 U.S.C. 1251-1387).
(H) Debarment and Suspension (Executive Orders 12549 and
12689) - A contract award (see 2 CFR 180.220) must not be
made to parties listed on the governmentwide exclusions in the
System for Award Management (SAM), in accordance with the
OMB guidelines at 2 CFR 180 that implement Executive Orders
12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part
200.327 Contract provisions
1989 Comp., p. 235), “Debarment and Suspension.”
(I) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors
that apply or bid for an award exceeding $100,000 must file the
required certification. Each tier certifies to the tier above that it
will not and has not used Federal appropriated funds to pay any
person or organization for influencing or attempting to influence
an officer or employee of any agency, a member of Congress,
officer or employee of Congress, or an employee of a member
of Congress in connection with obtaining any Federal contract,
grant or any other award covered by 31 U.S.C. 1352. Each tier
must also disclose any lobbying with non-Federal funds that
takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the non-
Federal award.
Uniform Guidance defines five (5) methods of procurement and the requirements for each type. The Town of
Colchester/Colchester Board of Education purchasing policy is to follow the procedures as required and
summarized in the following table:
Dollar
Procurement Type Threshold Procedures
May be awarded without soliciting competitive price or rate
quotes if price is considered to be reasonable.
Reasonableness can be determined by comparing the price
Micro-purchases $0 – $10,000 to past purchases or other published prices and/or
requesting prices from more than one vendor
When possible, purchases will be distributed equitably
among a range of qualified vendors
Price or rate quotes must be obtained from at least two (2)
sources
Small purchases $10,001 – 250,000 Price quotes, including phone quotes must be formally
documented and retained.
Price does not need to be deciding factor
5
Dollar
Procurement Type Threshold Procedures
Bids must be formally solicited from an adequate number of
vendors (2 or more)
Bids must be publicly advertised
Bids/RFP package will provide sufficient response time
Request for bid or proposal will clearly define details and
scope of the project, and the items or services requested
from the bidder including the timeline
Sealed bids $250,001 and greater Bids will be opened publicly
Bids will be awarded based upon firm fixed price contract
made in writing to the lowest responsive and responsible
bidder
Any or all bids may be rejected based upon cancellation of
the project, change in needs or any other valid reason. The
reason for rejecting all bid must be formally documented
Bids must be publicized and identify all evaluation factors
and their relative importance
Bids must be solicited from an adequate number of qualified
sources
Award will be based upon a written method for conducting
Competitive proposals $250,001 and greater
technical evaluations of the proposals and selecting
recipients
Contracts must be awarded to the responsible firm whose
proposal is most advantageous to the program, with price
and other factors considered
May be used only when the item is available only from a
single source, the public exigency or emergency will not
permit a delay resulting from competitive solicitation, federal
awarding agency or pass-through entity expressly
authorizes its use in response to a written request, or after
solicitation of a number of sources competition is
determined inadequate
Noncompetitive
$10,000 and greater Justification of the use of noncompetitive procurement must
procurement
be documented
Research on availability from multiple sources must be
documented
Documentation of authorization must be retained
Any initial solicitations from multiple sources which are
concluded to be inadequate, and such reasoning, must be
documented
The full text of the procurement standards contained in the CFR have been included in this purchasing policy
addendum as Appendix A. Any subsequent amendments to the federal procurement standards will be
automatically incorporated into this purchasing policy addendum as of their effective date.
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