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1/31/79 APPENDIX 3. PROCUREMENT STANDARDS AC 150/5900-1B Appendix 3 This appendix is a reprint of Attachment 0 to the Office of Management and Budget Circular A-102. PROCUREMENT STANDARDS 1. This Attachment provides standards for use by grantees in establishing proce- dures for the procurement of supplies, equipment, constrection, and other serv- ices with Federal grant funds. These standards are.furnished to insure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal law and Executive orders. No additional requirements shall be imposed by the Federal agencies upon the grantees un- less specifically required by Federal law or Executive orders. 2. The Standards contained in thls At- tachment do not relieve the grantee of the contractual responsibilities arising under its contracts. The grantee $s the responsible authority, without recourse to the grantor agency regarding the set- tlement and satisfaction of all contrac- tual and administrative issues arising out of procurements entered into, in support of a grant. This Includes but Is not lim- ited to: disputes, claims. protests of award, source evaluation or other mat- ters of a contractual nature. Matters concerning violation of law are to be re- ferred to such local, State, or Federal authority as'.may have proper jurisdic- tion. 3. Grantees may use their own pro- curement regulations which reflect ap- plicable State and local law, rules and regulations provided that -procurements made with Federal grant funds adhere to the standards set forth as follows: (a) The grantee shall maintain a code or standards of conduct which shall govern the..performance of its oicers, employees, or agents in contracting with and expending Federal grant funds. Grantee's officers, employees, or agents, shall neither solicit nor accept gratui- ties, favors, or anything of monetary value from contractors or potential con- tractors. To the extent permissible by State or local Iaw, rules or regulations, such standards shall provide for penal- ties, sanctions, or other disciplinary ac- tions to be applied for violations of such standards by either the grantee officers, employees, or agents, or by contractors or their agents. • (b) All procurement transactions re- gardless of whether negotiated or adver- tised and without regard to. dollar value shall be conducted. in a manner so as to provide maximum open and free compe- tition. The grantee should be alert to or- ganizational conflicts of interest or non- competitive practices among contractors which may restrict or eliminate compe- tition or otherwise restrain trade. (c) The grantee shall establish pro- curement procedures which provide for, as a minimum, the following procedural requirements: (1) • Proposed procurement actions shall be reviewed by grantee officials to avoid purchasing unnecessary or dupli- cative Items. Where appropriate, . an analysis shall be made of lease and pur- chase alternatives to determine which would be the most economical, practical procurement. (2) Invitations for bids or requests for proposals shall be based upon a clear and accurate description of the techni- cal requirements for the material, prod- uct, or serr:ce to be procured: Such de- scription shall not, in competitive pro- curements, contain features which un- duly restrict competition. "Brand name or equal" description may be used as a means to define the performance or other salient requirements of a. procurement, and when so used the specific features of the named brand which trust be met by offerors should be clearly specified. <3) Positive efforts shall be made by the grantees to utilize small business and Minority -owned business sources or sup- plies and services. Such efforts should al- low these sources the maximum feasible opportunity to compete for contracts to be performed utilizing Federal grant funds. (4) The type of procuring instruments used (Le., fixed price contracts, cost re- imbursable contracts, purchase orders, incentive contracts, etc.), shall be ap- propriate for the particular procurement and for promoting the best interest of the grant program involved. The "cast - plus -a -percentage -of -cost" method of contracting shall not be used. 1