1-fema procurement-omb-revisions factsheet fy25.pdf

FEMA Fact Sheet – Procurement Under Grants: 2024 OMB Revisions

December 2025 1

Purchasing Under a FEMA Award: 2024 OMB Revisions Federal Emergency Management Agency (FEMA) grant programs are subject to the Federal Procurement Standards found at 2 C.F.R. §§ 200.317 – 200.327. This fact sheet provides guidance on recent revisions by the Office of Management and Budget (OMB) to these standards, which will affect FEMA awards with a federal award date or disaster declaration date on or after Oct. 1, 2024.

Background On Apr. 22, 2024, OMB revised sections of OMB Guidance for Grants and Agreements found in Title 2 of the Code of Federal Regulations. These revisions apply to all FEMA awards with a federal award date or disaster declaration date on or after Oct. 1, 2024, unless specified otherwise. The changes include updates to the Federal Procurement Standards, which govern how FEMA award recipients and subrecipients must conduct purchasing under a FEMA award. This Fact Sheet does not provide an exhaustive list of the revisions. For more detailed information on the OMB revisions, please refer to Federal Register Notice 2024-30046, “Guidance for Federal Financial Assistance.”

Summary of Applicable Federal Procurement Below is a summary of how the Federal Procurement Standards apply to FEMA award recipients and subrecipients with a federal award date or disaster declaration date on or after Oct. 1, 2024, categorized by entity type:

Federal Procurement Standards Applicable to States, Indian Tribes, Local Governments, and Nonprofits

States, Indian Tribes, the District of Columbia, U.S. territories and their agencies and instrumentalities: These entities must follow their own documented procurement policies and procedures when purchasing under a FEMA award pursuant to 2 C.F.R. § 200.317. These entities must also comply with requirements for domestic preferences (2 C.F.R. § 200.322), the procurement of recovered materials (2 C.F.R. § 200.323), and ensure that all necessary contract provisions are included in their contracts (2 C.F.R § 200.327). NOTE:

Indian Tribes are not subject to the procurement of recovered materials requirements at 2 C.F.R. § 200.323.

Local governments and nonprofits: These entities must have written documented procurement policies and procedures, which reflect applicable local, state or tribal law, and ensure compliance with the Federal Procurement Standards at 2 C.F.R. §§ 200.318 – 200.327.

https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d?toc=1 https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d?toc=1 https://www.federalregister.gov/documents/2024/04/22/2024-07496/guidance-for-federal-financial-assistance https://ecfr.federalregister.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR1ad5506a4809976/section-200.317 https://www.ecfr.gov/on/2024-10-01/title-2/section-200.317 https://www.ecfr.gov/on/2024-10-01/title-2/section-200.322 https://www.ecfr.gov/on/2024-10-01/title-2/section-200.323 https://www.ecfr.gov/on/2024-10-01/title-2/section-200.327 https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d

Procurement Under Grants: 2024 OMB Revisions FEMA Fact Sheet

Learn more at fema.gov/grants/procurement December 2025 2

NOTE: FEMA may apply remedies if a recipient or subrecipient does not comply with the Federal Procurement Standards, as appropriate, in accordance with its authorities found at 2 C.F.R. § 200.339. Additionally, all recipients and subrecipients must ensure compliance with the Cost Principles at 2 C.F.R. Part 200 Subpart E, including the requirement to ensure that costs are reasonable, as defined in 2 C.F.R. § 200.404.

Key Revisions to the Federal Procurement Standards

Procurements by States and Indian Tribes (2 C.F.R. § 200.317) Consistent with the existing requirements for states in 2 C.F.R. § 200.317, Indian Tribes must follow the same policies and procedures used for procurements with non-federal funds. In addition to adhering to their own policies and procedures, Indian Tribes must also comply with rules for Domestic Preferences (2 C.F.R. § 200.322) and Required Contract Provisions (2 C.F.R. § 200.327). NOTE: While an additional rule for Procurement of Recovered Materials (2 C.F.R. § 200.323) is also referenced in 2 C.F.R. § 200.317, this requirement only applies to state agencies and political subdivisions of a state and not to Indian Tribes.

The new OMB guidance also requires that states and Indian Tribes follow the Federal Procurement Standards at 2 C.F.R. §§ 200.318 – 200.327 if they do not have their own procurement policies or procedures.

Removed Prohibition on Geographic Preferences (2 C.F.R. § 200.319(c)) OMB removed the prohibition on geographic preferences when evaluating bids or proposals previously found in 2 C.F.R. § 200.319(c). Any geographic preferences used when evaluating bids or proposals under a FEMA award must be consistent with governing laws outside of 2 C.F.R. Part 200.

Further Assistance Additional assistance regarding purchasing under a FEMA award can be accessed by visiting the Procurement Disaster Assistance Team (PDAT) website or by contacting one of the points of contact listed below:

State Emergency Management Agency (Disaster Grants): www.fema.gov/emergency-management-agencies

State Administrative Agency (Non-Disaster Grants): www.fema.gov/grants/preparedness/about/state-administrative-agency-contacts

Contact PDAT: FEMA-GPD-PDAT@fema.dhs.gov; make sure to copy your FEMA grant program point of contact when emailing PDAT.

NOTE: Hurricane Helene made landfall on Sept. 26, 2024, with related disaster declarations occurring both before and after Oct. 1, 2024. To streamline the grant rules applicable to Hurricane Helene declarations, FEMA has decided to amend Hurricane Helene FEMA-State/Tribe Agreements issued before Oct. 1, 2024, to ensure the OMB revisions apply uniformly to all Hurricane Helene-related declarations no matter the declaration date.

https://www.ecfr.gov/on/2024-10-01/title-2/section-200.339 https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-E https://www.ecfr.gov/on/2024-10-01/title-2/section-200.404 https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d https://www.ecfr.gov/on/2024-10-01/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d https://www.fema.gov/grants/procurement https://www.fema.gov/grants/procurement http://www.fema.gov/emergency-management-agencies http://www.fema.gov/grants/preparedness/about/state-administrative-agency-contacts http://www.fema.gov/grants/preparedness/about/state-administrative-agency-contacts

Further Assistance