Grants Practice Shorts: Value-Tier Based System, Awards, and Debarment and Suspension
Welcome to Feldesman’s Grants Practice Shorts series where we discuss helpful tips and strategies in common areas of federal grant management. Be sure to check out our other installments on our Grants Practice Shorts page.
Value-Tier Based System
The standards that apply to procurements of goods, property or services that are funded with federal grant funds are listed at 2 C.F.R. § 200.320. It is, in essence, a value tier-based system as follows:
| Value of Procurement | Applicable Standard |
|---|---|
| Over $250,000 | Formal competition required – Two options: (i) Sealed bids; or (ii) Request for proposal |
| Over $10,000 and up to $250,000 | Informal competition: price or rate quotations must be obtained from an adequate number of qualified sources (certainly at least two, preferably three or more) |
| Up to $10,000 | No competition required: to the extent practicable, distribute these purchases equitably among qualified supplies and award the purchase if the price is reasonable based on research, experience, purchase history or other information and documents on file |
Awards
Procurement purchases must be awarded to “responsible offerors.” 2 C.F.R. § 200.318(h).
Debarment & Suspension
A contract award may not be made to any persons or entities that, as provided by 2 C.F.R. Part 180, appear on the governmentwide exclusions list, available in sam.gov. See 2 C.F.R. Part 200, Appendix II, § (H).
For questions concerning our Grants Practice Shorts series, please contact Phillip A. Escoriaza, Senior Counsel, at 202.466.8960 or pescoriaza@feldesman.com.
