40 CFR 35.4210: Must my group solicit and document bids for our procurements?

(a) The steps needed to be taken to procure goods and/or services depends on the amount of the proposed procurement:

If the aggregate amount of the Then your group

(1) purchase is $1,000 or less may make the purchase as long as you make sure the price is reasonable; no oral or written bids are necessary.

(2) proposed contract is over $1,000 but less than $25,000 must obtain and document oral or written bids from two or more qualified sources.

(3) proposed contract is $25,000 to $100,000 must:

(i) Solicit written bids from three or more sources who are willing and able to do the work;

(ii) Provide potential sources in the scope of work to be performed and the criteria your group will use to evaluate the bids;

(iii) Objectively evaluate all bids; and

(iv) Notify all unsuccessful bidders.

(4) proposed contract is greater than $100,000 must follow the procurement regulations in 2 CFR Parts 200 and 1500 (these regulations outline the standards for your group to use when contracting for services with Federal funds; they also contain provisions on: codes of conduct for the award and administration of contracts; competition; procurement procedures; cost and price analysis; procurement records; contract administration; and contracts generally).

(b) Your group must not divide any procurements into smaller parts to get under any of the dollar limits in paragraph (a) of this section.