11-Exhibit E OMB Federal Procurment Requirements.pdf

OMB Guidance § 200.318

§ 200.318 General procurement stand-ards.

(a) The non-Federal entity must use its own documented procurement pro-cedures which reflect applicable State and local laws and regulations, pro-vided that the procurements conform to applicable Federal law and the standards identified in this section.

(b) Non-Federal entities must main-tain oversight to ensure that contrac-tors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.

(c)(1) The non-Federal entity must maintain written standards of conduct covering conflicts of interest and gov-erning the performance of its employ-ees engaged in the selection, award and administration of contracts. No em-ployee, officer, or agent must partici-pate in the selection, award, or admin-istration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate fam-ily, his or her partner, or an organiza-tion which employs or is about to em-ploy any of the parties indicated here-in, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The of-ficers, employees, and agents of the non-Federal entity must neither solicit nor accept gratuities, favors, or any-thing of monetary value from contrac-tors or parties to subcontracts. How-ever, non-Federal entities may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nomi-nal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non-Federal entity.

(2) If the non-Federal entity has a parent, affiliate, or subsidiary organi-zation that is not a state, local govern-ment, or Indian tribe, the non-Federal entity must also maintain written standards of conduct covering organi-zational conflicts of interest. Organiza-tional conflicts of interest means that because of relationships with a parent company, affiliate, or subsidiary orga-nization, the non-Federal entity is un-able or appears to be unable to be im-partial in conducting a procurement action involving a related organiza-tion.

(d) The non-Federal entity’s proce-dures must avoid acquisition of unnec-essary or duplicative items. Consider-ation should be given to consolidating or breaking out procurements to ob-tain a more economical purchase.

Where appropriate, an analysis will be made of lease versus purchase alter-natives, and any other appropriate analysis to determine the most eco-nomical approach.

(e) To foster greater economy and ef-ficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal govern-ment, the non-Federal entity is encour-aged to enter into state and local inter-governmental agreements or inter-en-tity agreements where appropriate for procurement or use of common or shared goods and services.

(f) The non-Federal entity is encour-aged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs.

(g) The non-Federal entity is encour-aged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable op-portunities for cost reductions. Value engineering is a systematic and cre-ative analysis of each contract item or task to ensure that its essential func-tion is provided at the overall lower cost.

(h) The non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procure-ment. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not nec-essarily limited to the following: ra-tionale for the method of procurement, selection of contract type, contractor

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00127 Fmt 8010 Sfmt 8010 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C F

R

EXHIBIT G - 200.318- 200.328, APPENDIX I TO PART 200 AND APPENDIX II TO PART 200

2 CFR Ch. II (1–1–14 Edition) § 200.319 selection or rejection, and the basis for the contract price.

(j)(1) The non-Federal entity may use time and material type contracts only after a determination that no other contract is suitable and if the contract includes a ceiling price that the con-tractor exceeds at its own risk. Time and material type contract means a contract whose cost to a non-Federal entity is the sum of:

(i) The actual cost of materials; and

(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.

(2) Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. There-fore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the non-Federal en-tity awarding such a contract must as-sert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient meth-ods and effective cost controls.

(k) The non-Federal entity alone must be responsible, in accordance with good administrative practice and sound business judgment, for the set-tlement of all contractual and adminis-trative issues arising out of procure-ments. These issues include, but are not limited to, source evaluation, pro-tests, disputes, and claims. These standards do not relieve the non-Fed-eral entity of any contractual respon-sibilities under its contracts. The Fed-eral awarding agency will not sub-stitute its judgment for that of the non-Federal entity unless the matter is primarily a Federal concern. Viola-tions of law will be referred to the local, state, or Federal authority hav-ing proper jurisdiction.

§ 200.319 Competition.

(a) All procurement transactions must be conducted in a manner pro-viding full and open competition con-sistent with the standards of this sec-tion. In order to ensure objective con-tractor performance and eliminate un-fair competitive advantage, contrac-tors that develop or draft specifica-tions, requirements, statements of work, and invitations for bids or re-quests for proposals must be excluded from competing for such procurements.

Some of the situations considered to be restrictive of competition include but are not limited to:

(1) Placing unreasonable require-ments on firms in order for them to qualify to do business;

(2) Requiring unnecessary experience and excessive bonding;

(3) Noncompetitive pricing practices between firms or between affiliated companies;

(4) Noncompetitive contracts to con-sultants that are on retainer contracts;

(5) Organizational conflicts of inter-est;

(6) Specifying only a ‘‘brand name’’ product instead of allowing ‘‘an equal’’ product to be offered and describing the performance or other relevant re-quirements of the procurement; and

(7) Any arbitrary action in the pro-curement process.

(b) The non-Federal entity must con-duct procurements in a manner that prohibits the use of statutorily or ad-ministratively imposed state or local geographical preferences in the evalua-tion of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encour-age geographic preference. Nothing in this section preempts state licensing laws. When contracting for architec-tural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of quali-fied firms, given the nature and size of the project, to compete for the con-tract.

(c) The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations:

(1) Incorporate a clear and accurate description of the technical require-ments for the material, product, or service to be procured. Such descrip-tion must not, in competitive procure-ments, contain features which unduly restrict competition. The description may include a statement of the quali-tative nature of the material, product or service to be procured and, when necessary, must set forth those min-imum essential characteristics and

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00128 Fmt 8010 Sfmt 8010 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C F

OMB Guidance § 200.320 standards to which it must conform if it is to satisfy its intended use. De-tailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a ‘‘brand name or equivalent’’ description may be used as a means to define the performance or other salient requirements of pro-curement. The specific features of the named brand which must be met by of-fers must be clearly stated; and

(2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.

(d) The non-Federal entity must en-sure that all prequalified lists of per-sons, firms, or products which are used in acquiring goods and services are cur-rent and include enough qualified sources to ensure maximum open and free competition. Also, the non-Federal entity must not preclude potential bid-ders from qualifying during the solici-tation period.

§ 200.320 Methods of procurement to be followed.

The non-Federal entity must use one of the following methods of procure-ment.

(a) Procurement by micro-purchases.

Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,000 (or $2,000 in the case of acquisitions for construction subject to the Davis-Bacon Act). To the extent practicable, the non-Federal entity must distribute micro-purchases equi-tably among qualified suppliers. Micro-purchases may be awarded without so-liciting competitive quotations if the non-Federal entity considers the price to be reasonable.

(b) Procurement by small purchase procedures. Small purchase procedures are those relatively simple and infor-mal procurement methods for securing services, supplies, or other property that do not cost more than the Sim-plified Acquisition Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.

(c) Procurement by sealed bids (for-mal advertising). Bids are publicly so-licited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, con-forming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction, if the condi-tions in paragraph (c)(1) of this section apply.

(1) In order for sealed bidding to be feasible, the following conditions should be present:

(i) A complete, adequate, and real-istic specification or purchase descrip-tion is available;

(ii) Two or more responsible bidders are willing and able to compete effec-tively for the business; and

(iii) The procurement lends itself to a firm fixed price contract and the selec-tion of the successful bidder can be made principally on the basis of price.

(2) If sealed bids are used, the fol-lowing requirements apply:

(i) The invitation for bids will be pub-licly advertised and bids must be solic-ited from an adequate number of known suppliers, providing them suffi-cient response time prior to the date set for opening the bids;

(ii) The invitation for bids, which will include any specifications and per-tinent attachments, must define the items or services in order for the bidder to properly respond;

(iii) All bids will be publicly opened at the time and place prescribed in the invitation for bids;

(iv) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder.

Where specified in bidding documents, factors such as discounts, transpor-tation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and

(v) Any or all bids may be rejected if there is a sound documented reason.

(d) Procurement by competitive pro-posals. The technique of competitive proposals is normally conducted with more than one source submitting an

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00129 Fmt 8010 Sfmt 8010 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

2 CFR Ch. II (1–1–14 Edition) § 200.321 offer, and either a fixed price or cost-reimbursement type contract is award-

ed. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:

(1) Requests for proposals must be publicized and identify all evaluation factors and their relative importance.

Any response to publicized requests for proposals must be considered to the maximum extent practical;

(2) Proposals must be solicited from an adequate number of qualified sources;

(3) The non-Federal entity must have a written method for conducting tech-nical evaluations of the proposals re-ceived and for selecting recipients;

(4) Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors consid-ered; and

(5) The non-Federal entity may use competitive proposal procedures for qualifications-based procurement of ar-chitectural/engineering (A/E) profes-sional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and rea-sonable compensation. The method, where price is not used as a selection factor, can only be used in procure-ment of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a po-tential source to perform the proposed effort.

(e) [Reserved]

(f) Procurement by noncompetitive proposals. Procurement by non-competitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following cir-cumstances apply:

(1) The item is available only from a single source;

(2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solic-itation;

(3) The Federal awarding agency or pass-through entity expressly author-izes noncompetitive proposals in re-sponse to a written request from the non-Federal entity; or

(4) After solicitation of a number of sources, competition is determined in-adequate.

§ 200.321 Contracting with small and minority businesses, women’s busi-ness enterprises, and labor surplus area firms.

(a) The non-Federal entity must take all necessary affirmative steps to as-sure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible.

(b) Affirmative steps must include:

(1) Placing qualified small and mi-nority businesses and women’s business enterprises on solicitation lists;

(2) Assuring that small and minority businesses, and women’s business en-terprises are solicited whenever they are potential sources;

(3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit max-imum participation by small and mi-nority businesses, and women’s busi-ness enterprises;

(4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s busi-ness enterprises;

(5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Com-merce; and

(6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs

(1) through (5) of this section.

§ 200.322 Procurement of recovered materials.

A non-Federal entity that is a state agency or agency of a political subdivi-sion of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items des-ignated in guidelines of the Environ-mental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials prac-ticable, consistent with maintaining a satisfactory level of competition, VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00130 Fmt 8010 Sfmt 8010 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

OMB Guidance § 200.324 where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fis-cal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and re-source recovery; and establishing an af-firmative procurement program for procurement of recovered materials identified in the EPA guidelines.

§ 200.323 Contract cost and price.

(a) The non-Federal entity must per-form a cost or price analysis in connec-tion with every procurement action in excess of the Simplified Acquisition Threshold including contract modifica-tions. The method and degree of anal-ysis is dependent on the facts sur-rounding the particular procurement situation, but as a starting point, the non-Federal entity must make inde-pendent estimates before receiving bids or proposals.

(b) The non-Federal entity must ne-gotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed.

To establish a fair and reasonable prof-it, consideration must be given to the complexity of the work to be per-formed, the risk borne by the con-tractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past perform-ance, and industry profit rates in the surrounding geographical area for similar work.

(c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under Subpart E—Cost Principles of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost prin-ciples.

(d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.

§ 200.324 Federal awarding agency or pass-through entity review.

(a) The non-Federal entity must make available, upon request of the

Federal awarding agency or pass-through entity, technical specifica-tions on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or serv-ice specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a so-licitation document. However, if the non-Federal entity desires to have the review accomplished after a solicita-tion has been developed, the Federal awarding agency or pass-through enti-ty may still review the specifications, with such review usually limited to the technical aspects of the proposed pur-chase.

(b) The non-Federal entity must make available upon request, for the Federal awarding agency or pass-through entity pre-procurement re-view, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:

(1) The non-Federal entity’s procure-ment procedures or operation fails to comply with the procurement stand-ards in this part;

(2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation;

(3) The procurement, which is ex-pected to exceed the Simplified Acqui-sition Threshold, specifies a ‘‘brand name’’ product;

(4) The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or

(5) A proposed contract modification changes the scope of a contract or in-creases the contract amount by more than the Simplified Acquisition Threshold.

(c) The non-Federal entity is exempt from the pre-procurement review in paragraph (b) of this section if the Fed-eral awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part.

(1) The non-Federal entity may re-quest that its procurement system be

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00131 Fmt 8010 Sfmt 8010 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

2 CFR Ch. II (1–1–14 Edition) § 200.325 reviewed by the Federal awarding agency or pass-through entity to deter-mine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third party contracts are awarded on a regular basis;

(2) The non-Federal entity may self-certify its procurement system. Such self-certification must not limit the Federal awarding agency’s right to sur-vey the system. Under a self-certifi-cation procedure, the Federal awarding agency may rely on written assurances from the non-Federal entity that it is complying with these standards. The non-Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.

§ 200.325 Bonding requirements.

For construction or facility improve-ment contracts or subcontracts exceed-ing the Simplified Acquisition Thresh-old, the Federal awarding agency or pass-through entity may accept the bonding policy and requirements of the non-Federal entity provided that the Federal awarding agency or pass-through entity has made a determina-tion that the Federal interest is ade-quately protected. If such a determina-tion has not been made, the minimum requirements must be as follows:

(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The ‘‘bid guarantee’’ must con-sist of a firm commitment such as a bid bond, certified check, or other ne-gotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

(b) A performance bond on the part of the contractor for 100 percent of the contract price. A ‘‘performance bond’’ is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such contract.

(c) A payment bond on the part of the contractor for 100 percent of the con-tract price. A ‘‘payment bond’’ is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and ma-terial in the execution of the work pro-vided for in the contract.

§ 200.326 Contract provisions.

The non-Federal entity’s contracts must contain the applicable provisions described in Appendix II to Part 200— Contract Provisions for non-Federal Entity Contracts Under Federal Awards.

PERFORMANCE AND FINANCIAL

MONITORING AND REPORTING

§ 200.327 Financial reporting.

Unless otherwise approved by OMB, the Federal awarding agency may so-licit only the standard, OMB-approved governmentwide data elements for col-lection of financial information (at time of publication the Federal Finan-cial Report or such future collections as may be approved by OMB and listed on the OMB Web site). This informa-tion must be collected with the fre-quency required by the terms and con-ditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in un-usual circumstances, for example where more frequent reporting is nec-essary for the effective monitoring of the Federal award or could signifi-cantly affect program outcomes, and preferably in coordination with per-formance reporting.

200.328 Monitoring and reporting pro-

gram performance.

(a) Monitoring by the non-Federal enti-

ty. The non-Federal entity is respon-sible for oversight of the operations of the Federal award supported activities.

The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Fed-eral requirements and performance ex-pectations are being achieved. Moni-toring by the non-Federal entity must cover each program, function or activ-ity. See also § 200.331 Requirements for pass-through entities.

(b) Non-construction performance re-ports. The Federal awarding agency must use standard, OMB-approved data elements for collection of performance information (including performance

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00132 Fmt 8010 Sfmt 8010 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

OMB Guidance Pt. 200, App. I

(e) None of the Federal programs had audit findings from any of the fol-lowing in either of the preceding two audit periods in which they were classi-fied as Type A programs:

(1) Internal control deficiencies that were identified as material weaknesses in the auditor’s report on internal con-trol for major programs as required under § 200.515 Audit reporting, para-graph (c);

(2) A modified opinion on a major program in the auditor’s report on major programs as required under § 200.515 Audit reporting, paragraph (c);

or

(3) Known or likely questioned costs that exceeded five percent of the total Federal awards expended for a Type A program during the audit period.

MANAGEMENT DECISIONS

§ 200.521 Management decision.

(a) General. The management deci-sion must clearly state whether or not the audit finding is sustained, the rea-sons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action. If the auditee has not completed corrective action, a timetable for follow-up should be given. Prior to issuing the manage-ment decision, the Federal agency or pass-through entity may request addi-tional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. The management de-cision should describe any appeal proc-ess available to the auditee. While not required, the Federal agency or pass-through entity may also issue a man-agement decision on findings relating to the financial statements which are required to be reported in accordance with GAGAS.

(b) Federal agency. As provided in § 200.513 Responsibilities, paragraph (a)(7), the cognizant agency for audit must be responsible for coordinating a management decision for audit find-ings that affect the programs of more than one Federal agency. As provided in § 200.513 Responsibilities, paragraph (c)(3), a Federal awarding agency is re-sponsible for issuing a management de-cision for findings that relate to Fed-eral awards it makes to non-Federal entities.

(c) Pass-through entity. As provided in § 200.331 Requirements for pass-through entities, paragraph (d), the pass-through entity must be responsible for issuing a management decision for audit findings that relate to Federal awards it makes to subrecipients.

(d) Time requirements. The Federal awarding agency or pass-through enti-ty responsible for issuing a manage-ment decision must do so within six months of acceptance of the audit re-port by the FAC. The auditee must ini-tiate and proceed with corrective ac-tion as rapidly as possible and correc-tive action should begin no later than upon receipt of the audit report.

(e) Reference numbers. Management decisions must include the reference numbers the auditor assigned to each audit finding in accordance with § 200.516 Audit findings paragraph (c).

APPENDIX I TO PART 200—FULL TEXT OF

NOTICE OF FUNDING OPPORTUNITY

The full text of the notice of funding op-portunity is organized in sections. The re-quired format outlined in this appendix indi-cates immediately following the title of each section whether that section is required in every announcement or is a Federal award-ing agency option. The format is designed so that similar types of information will appear in the same sections in announcements of different Federal funding opportunities. To-ward that end, there is text in each of the following sections to describe the types of in-formation that a Federal awarding agency would include in that section of an actual announcement.

A Federal awarding agency that wishes to include information that the format does not specifically discuss may address that subject in whatever section(s) is most appropriate.

For example, if a Federal awarding agency chooses to address performance goals in the announcement, it might do so in the funding opportunity description, the application con-tent, or the reporting requirements.

Similarly, when this format calls for a type of information to be in a particular sec-tion, a Federal awarding agency wishing to address that subject in other sections may elect to repeat the information in those sec-tions or use cross references between the sec-tions (there should be hyperlinks for cross-references in any electronic versions of the announcement). For example, a Federal awarding agency may want to include in Section I information about the types of

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00199 Fmt 8010 Sfmt 8002 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

2 CFR Ch. II (1–1–14 Edition) Pt. 200, App. I non-Federal entities who are eligible to apply. The format specifies a standard loca-tion for that information in Section III.1 but that does not preclude repeating the infor-mation in Section I or creating a cross ref-erence between Sections I and III.1, as long as a potential applicant can find the infor-mation quickly and easily from the standard location.

The sections of the full text of the an-nouncement are described in the following paragraphs.

A. PROGRAM DESCRIPTION—REQUIRED

This section contains the full program de-scription of the funding opportunity. It may be as long as needed to adequately commu-nicate to potential applicants the areas in which funding may be provided. It describes the Federal awarding agency’s funding prior-ities or the technical or focus areas in which the Federal awarding agency intends to pro-vide assistance. As appropriate, it may in-clude any program history (e.g., whether this is a new program or a new or changed area of program emphasis). This section may com-municate indicators of successful projects (e.g., if the program encourages collabo-rative efforts) and may include examples of projects that have been funded previously.

This section also may include other informa-tion the Federal awarding agency deems nec-essary, and must at a minimum include cita-tions for authorizing statutes and regula-tions for the funding opportunity.

B. FEDERAL AWARD INFORMATION—REQUIRED

This section provides sufficient informa-tion to help an applicant make an informed decision about whether to submit a proposal.

Relevant information could include the total amount of funding that the Federal awarding agency expects to award through the an-nouncement; the anticipated number of Fed-eral awards; the expected amounts of indi-vidual Federal awards (which may be a range); the amount of funding per Federal award, on average, experienced in previous years; and the anticipated start dates and periods of performance for new Federal awards. This section also should address whether applications for renewal or sup-plementation of existing projects are eligible to compete with applications for new Fed-eral awards.

This section also must indicate the type(s) of assistance instrument (e.g., grant, cooper-ative agreement) that may be awarded if ap-plications are successful. If cooperative agreements may be awarded, this section ei-ther should describe the ‘‘substantial in-volvement’’ that the Federal awarding agen-cy expects to have or should reference where the potential applicant can find that infor-mation (e.g., in the funding opportunity de-scription in A. Program Description—Re-quired or Federal award administration in-formation in section D. Application and Sub-mission Information). If procurement con-tracts also may be awarded, this must be stated.

C. ELIGIBILITY INFORMATION

This section addresses the considerations or factors that determine applicant or appli-cation eligibility. This includes the eligi-bility of particular types of applicant organi-zations, any factors affecting the eligibility of the principal investigator or project direc-tor, and any criteria that make particular projects ineligible. Federal agencies should make clear whether an applicant’s failure to meet an eligibility criterion by the time of an application deadline will result in the Federal awarding agency returning the ap-plication without review or, even though an application may be reviewed, will preclude the Federal awarding agency from making a Federal award. Key elements to be addressed are:

1. Eligible Applicants—Required. Announce-ments must clearly identify the types of en-tities that are eligible to apply. If there are no restrictions on eligibility, this section may simply indicate that all potential appli-cants are eligible. If there are restrictions on eligibility, it is important to be clear about the specific types of entities that are eligi-ble, not just the types that are ineligible.

For example, if the program is limited to nonprofit organizations subject to 26 U.S.C.

501(c)(3) of the tax code (26 U.S.C. 501(c)(3)), the announcement should say so. Similarly, it is better to state explicitly that Native American tribal organizations are eligible than to assume that they can unambiguously infer that from a statement that nonprofit organizations may apply. Eligibility also can be expressed by exception, (e.g., open to all types of domestic applicants other than indi-viduals). This section should refer to any portion of Section IV specifying documenta-tion that must be submitted to support an eligibility determination (e.g., proof of 501(c)(3) status as determined by the Internal Revenue Service or an authorizing tribal res-olution). To the extent that any funding re-striction in Section IV.5 could affect the eli-gibility of an applicant or project, the an-nouncement must either restate that restric-tion in this section or provide a cross-ref-erence to its description in Section IV.5.

2. Cost Sharing or Matching—Required. An-nouncements must state whether there is re-quired cost sharing, matching, or cost par-ticipation without which an application would be ineligible (if cost sharing is not re-quired, the announcement must explicitly say so). Required cost sharing may be a cer-tain percentage or amount, or may be in the form of contributions of specified items or activities (e.g., provision of equipment). It is

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00200 Fmt 8010 Sfmt 8002 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C important that the announcement be clear about any restrictions on the types of cost (e.g., in-kind contributions) that are accept-able as cost sharing. Cost sharing as an eligi-bility criterion includes requirements based in statute or regulation, as described in § 200.306 Cost sharing or matching of this Part. This section should refer to the appro-priate portion(s) of section D. Application and Submission Information stating any pre-award requirements for submission of letters or other documentation to verify commit-ments to meet cost-sharing requirements if a Federal award is made.

3. Other—Required, if applicable. If there are other eligibility criteria (i.e., criteria that have the effect of making an application or project ineligible for Federal awards, wheth-er referred to as ‘‘responsiveness’’ criteria, ‘‘go-no go’’ criteria, ‘‘threshold’’ criteria, or in other ways), must be clearly stated and must include a reference to the regulation of requirement that describes the restriction, as applicable. For example, if entities that have been found to be in violation of a par-ticular Federal statute are ineligible, it is important to say so. This section must also state any limit on the number of applica-tions an applicant may submit under the an-nouncement and make clear whether the limitation is on the submitting organization, individual investigator/program director, or both. This section should also address any eligibility criteria for beneficiaries or for program participants other than Federal award recipients.

D. APPLICATION AND SUBMISSION INFORMATION

1. Address to Request Application Package— Required. Potential applicants must be told how to get application forms, kits, or other materials needed to apply (if this announce-ment contains everything needed, this sec-tion need only say so). An Internet address where the materials can be accessed is ac-ceptable. However, since high-speed Internet access is not yet universally available for downloading documents, and applicants may have additional accessibility requirements, there also should be a way for potential ap-plicants to request paper copies of materials, such as a U.S. Postal Service mailing ad-dress, telephone or FAX number, Telephone Device for the Deaf (TDD), Text Telephone (TTY) number, and/or Federal Information Relay Service (FIRS) number.

2. Content and Form of Application Submis-sion—Required. This section must identify the required content of an application and the forms or formats that an applicant must use to submit it. If any requirements are stated elsewhere because they are general re-quirements that apply to multiple programs or funding opportunities, this section should refer to where those requirements may be found. This section also should include re-quired forms or formats as part of the an-nouncement or state where the applicant may obtain them.

This section should specifically address content and form or format requirements for:

i. Pre-applications, letters of intent, or white papers required or encouraged (see Section IV.3), including any limitations on the number of pages or other formatting re-quirements similar to those for full applica-tions.

ii. The application as a whole. For all sub-missions, this would include any limitations on the number of pages, font size and type-face, margins, paper size, number of copies, and sequence or assembly requirements. If electronic submission is permitted or re-quired, this could include special require-ments for formatting or signatures.

iii. Component pieces of the application (e.g., if all copies of the application must bear original signatures on the face page or the program narrative may not exceed 10 pages). This includes any pieces that may be submitted separately by third parties (e.g., references or letters confirming commit-ments from third parties that will be con-tributing a portion of any required cost shar-ing).

iv. Information that successful applicants must submit after notification of intent to make a Federal award, but prior to a Federal award. This could include evidence of com-pliance with requirements relating to human subjects or information needed to comply with the National Environmental Policy Act (NEPA) (42 U.S.C. 4321–4370h).

3. Dun and Bradstreet Universal Numbering System (DUNS) Number and System for Award Management (SAM)—Required.

This paragraph must state clearly that each applicant (unless the applicant is an in-dividual or Federal awarding agency that is excepted from those requirements under 2 CFR § 25.110(b) or (c), or has an exception ap-proved by the Federal awarding agency under 2 CFR § 25.110(d)) is required to: (i) Be registered in SAM before submitting its ap-plication; (ii) provide a valid DUNS number in its application; and (iii) continue to main-tain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by a Federal award-ing agency. It also must state that the Fed-eral awarding agency may not make a Fed-eral award to an applicant until the appli-cant has complied with all applicable DUNS and SAM requirements and, if an applicant has not fully complied with the requirements by the time the Federal awarding agency is ready to make a Federal award, the Federal awarding agency may determine that the ap-plicant is not qualified to receive a Federal award and use that determination as a basis

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00201 Fmt 8010 Sfmt 8002 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

2 CFR Ch. II (1–1–14 Edition) Pt. 200, App. I

1 With respect to electronic methods for providing information about funding oppor-tunities or accepting applicants’ submissions of information, each Federal awarding agen-cy is responsible for compliance with Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d).

for making a Federal award to another appli-cant.

4. Submission Dates and Times—Required.

Announcements must identify due dates and times for all submissions. This includes not only the full applications but also any pre-liminary submissions (e.g., letters of intent, white papers, or pre-applications). It also in-cludes any other submissions of information before Federal award that are separate from the full application. If the funding oppor-tunity is a general announcement that is open for a period of time with no specific due dates for applications, this section should say so. Note that the information on dates that is included in this section also must ap-pear with other overview information in a lo-cation preceding the full text of the an-nouncement (see § 200.203 Notices of funding opportunities of this Part).

Each type of submission should be des-ignated as encouraged or required and, if re-quired, any deadline date (or dates, if the Federal awarding agency plans more than one cycle of application submission, review, and Federal award under the announcement) should be specified. The announcement must state (or provide a reference to another docu-ment that states):

i. Any deadline in terms of a date and local time. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.

ii. What the deadline means (e.g., whether it is the date and time by which the Federal awarding agency must receive the applica-tion, the date by which the application must be postmarked, or something else) and how that depends, if at all, on the submission method (e.g., mail, electronic, or personal/ courier delivery).

iii. The effect of missing a deadline (e.g., whether late applications are neither re-viewed nor considered or are reviewed and considered under some circumstances).

iv. How the receiving Federal office deter-mines whether an application or pre-applica-tion has been submitted before the deadline.

This includes the form of acceptable proof of mailing or system-generated documentation of receipt date and time.

This section also may indicate whether, when, and in what form the applicant will re-ceive an acknowledgement of receipt. This information should be displayed in ways that will be easy to understand and use. It can be difficult to extract all needed information from narrative paragraphs, even when they are well written. A tabular form for pro-viding a summary of the information may help applicants for some programs and give them what effectively could be a checklist to verify the completeness of their application package before submission.

5. Intergovernmental Review—Required, if ap-plicable. If the funding opportunity is subject to Executive Order 12372, ‘‘Intergovern-mental Review of Federal Programs,’’ the notice must say so. In alerting applicants that they must contact their state’s Single Point of Contact (SPOC) to find out about and comply with the state’s process under Executive Order 12372, it may be useful to in-form potential applicants that the names and addresses of the SPOCs are listed in the Office of Management and Budget’s Web site.

www.whitehouse.gov/omb/grants/spoc.html.

6. Funding Restrictions—Required. Notices must include information on funding restric-tions in order to allow an applicant to de-velop an application and budget consistent with program requirements. Examples are whether construction is an allowable activ-ity, if there are any limitations on direct costs such as foreign travel or equipment purchases, and if there are any limits on in-direct costs (or facilities and administrative costs). Applicants must be advised if Federal awards will not allow reimbursement of pre- Federal award costs.

7. Other Submission Requirements— Required.

This section must address any other submis-sion requirements not included in the other paragraphs of this section. This might in-clude the format of submission, i.e., paper or electronic, for each type of required submis-sion. Applicants should not be required to submit in more than one format and this sec-tion should indicate whether they may choose whether to submit applications in hard copy or electronically, may submit only in hard copy, or may submit only electroni-cally.

This section also must indicate where ap-plications (and any pre-applications) must be submitted if sent by postal mail, electronic means, or hand-delivery. For postal mail submission, this must include the name of an office, official, individual or function (e.g., application receipt center) and a complete mailing address. For electronic submission, this must include the URL or email address;

whether a password(s) is required; whether particular software or other electronic capa-bilities are required; what to do in the event of system problems and a point of contact who will be available in the event the appli-cant experiences technical difficulties.1

E. APPLICATION REVIEW INFORMATION

1. Criteria—Required. This section must ad-dress the criteria that the Federal awarding agency will use to evaluate applications.

VerDate Mar<15>2010 14:08 Mar 14, 2014 Jkt 232005 PO 00000 Frm 00202 Fmt 8010 Sfmt 8002 Y:\SGML\232005.XXX 232005w re ie r-av ile s on

D S

K 5T

P T

V N

1P R

O D w ith

C

This includes the merit and other review cri-teria that evaluators will use to judge appli-cations, including any statutory, regulatory, or other preferences (e.g., minority status or Native American tribal preferences) that will be applied in the review process. These criteria are distinct from eligibility criteria that are addressed before an application is accepted for review and any program policy or other factors that are applied during the selection process, after the review process is completed. The intent is to make the appli-cation process transparent so applicants can make informed decisions when preparing their applications to maximize fairness of the process. The announcement should clear-ly describe all criteria, including any sub-criteria. If criteria vary in importance, the announcement should specify the relative percentages, weights, or other means used to distinguish among them. For statutory, reg-ulatory, or other preferences, the announce-ment should provide a detailed explanation of those preferences with an explicit indica-tion of their effect (e.g., whether they result in additional points being assigned).

If an applicant’s proposed cost sharing will be considered in the review process (as op-posed to being an eligibility criterion de-scribed in Section III.2), the announcement must specifically address how it will be con-sidered (e.g., to assign a certain number of additional points to applicants who offer cost sharing, or to break ties among applica-tions with equivalent scores after evaluation against all other factors). If cost sharing will not be considered in the evaluation, the an-nouncement should say so, so that there is no ambiguity for potential applicants. Vague statements that cost sharing is encouraged, without clarification as to what that means, are unhelpful to applicants. It also is impor-tant that the announcement be clear about any restrictions on the types of cost (e.g., in-kind contributions) that are acceptable as cost sharing.

2. Review and Selection Process—Required.

This section may vary in the level of detail provided. The announcement must list any program policy or other factors or elements, other than merit criteria, that the selecting official may use in selecting applications for Federal award (e.g., geographical dispersion, program balance, or diversity). The Federal awarding agency may also include other ap-propriate details. For example, this section may indicate who is responsible for evalua-tion against the merit criteria (e.g., peers ex-ternal to the Federal awarding agency or Federal awarding agency personnel) and/or who makes the final selections for Federal awards. If there is a multi-phase review proc-ess (e.g., an external panel advising internal Federal awarding agency personnel who make final recommendations to the deciding official), the announcement may describe the phases. It also may include: the number of people on an evaluation panel and how it op-erates, the way reviewers are selected, re-viewer qualifications, and the way that con-flicts of interest are avoided.