After three years of delay and anticipation, the effective date of the federal procurement standards has come and gone. These new standards will likely receive some attention from your auditors when auditing federal grants and programs.
The procurement standards, established through 2CFR part 200 (.317-.326), are effective for non-federal entities with fiscal years which began on or after December 26, 2017. These regulations place certain requirements on entities purchasing property, materials, supplies and services under a federal award and those requirements may cause your organization to procure such items differently than in the past, and may be different than purchasing requirements under state bid laws.
|Micro-purchases – below $10,000||No solicitation of prices or quotes needed.|
|Small Acquisition – between $10,000 and $250,000||Competitive quotes or pricing must be obtained from an adequate number of vendors.|
If your organization receives federal awards and has not implemented the necessary changes to your procurement policies to address the above requirements, your audit report may list findings related to your federal grants and programs. If you have questions or concerns about this or other complex federal regulations, please contact us.