Finding Text
2 C.F.R. ? 400.1 gives regulatory effect to the Department of Agriculture for 2 C.F.R. ? 200.318(a) which requires the School District to use its own documented procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this section. 2 C.F.R. ? 200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and 2 C.F.R.? 200.320. 2 C.F.R ? 200.320 requires procurement to be performed through micro-purchase procedures, small purchase procedures, sealed bids, competitive proposals or noncompetitive proposals when only one source was available. Furthermore, 2 C.F.R. ? 200.318(i) provides that the entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The School District implemented policy # DECA ? Administration of Federal Grant Funds, last revised on September 14, 2020. However, the policy did not document procurement performed through micro-purchase procedures. Procurement by micro-purchase was the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,500. To the extent practicable, the School District must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if the School District considers the price to be reasonable. The National Defense Authorization Act of 2018 allowed entities to increase the micro-purchase threshold from $3,500 to $10,000. However, this increase was required to be formally adopted by policy. As this was not formally approved, the School District was subject to the $3,500 threshold. During 2022, the School District purchased items from eight vendors with federal nutrition monies exceeding the $3,500 threshold where they did not ensure open competition by seeking multiple quotes. As a result, the School District did not ensure open competition through procurement. The School District should review their policy and the requirements of 2 C.F.R. ?? 200.318 through 200.320, as well as the National Defense Authorization Act of 2018. The School District should update their policy to include procurement by micro-purchases with a limit of either $3,500 or $10,000, as desired. The School District should ensure open competition has occurred by seeking multiple quotes for expenditures aggregating to more than the threshold per vendor, utilizing the required number of quotes as documented in their policy. For expenditures within the approved micro-purchase threshold, the School District should, to the extent practicable, distribute micro-purchases among vendors. This will help to ensure that the School District?s policies meet federal requirements, and the School District ensures open competition through procurement.