Read the full document: 2 CFR 200, Uniform Guidance (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards)
1. Uniform Guidance replaces A-21, A110, and A-133
On December 26, 2013 the Office of Management and Budget (OMB) released its final rule of “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.” This guidance to federal agencies streamlines and supersedes guidance that was previously contained in eight different circulars. For TUC, this new guidance will supersede OMB Circular A-133 (Audit requirements), 2 CFR Part 215 (formerly OMB Circular A-110 Administrative requirements), and 2CFR Part 220 (formerly OMB Circular A-21 Cost principles).
Non-federal entities, such as The University Corporation (TUC) must examine and revise their internal policies to ensure consistency with the Uniform Guidance and with agency-specific policies.
2. Application
The Uniform Guidance administrative requirements and cost principles will apply to new and incremental funding awarded after December 26, 2014. Existing Federal awards will continue to be governed by the terms and conditions under which they were awarded.
3. Delay on Implementation of Procurement Threshold
TUC Statement on Uniform Guidance Procurement Regulations
The Office of Management and Budget (OMB) recently delayed implementation of the procurement standards for micro-purchases (currently: purchases in excess of $3500) until July 1, 2017. At that time, purchases in excess of the threshold will be required to obtain multiple price quotes prior to procurement. After receiving numerous concerns from grant recipients, OMB is currently reviewing the threshold. TUC will delay the implementation of the procurement standards until a decision by OMB will have been made.
The Uniform Guidance outlines five methods of procurement:
- Micro-purchase: Purchases where the aggregate dollar amount does not exceed $3,500 (or $2,000 if the procurement is construction and subject to Davis-Bacon). When practical, the entity should distribute micro-purchases equitably among qualified suppliers. No competitive quotes are required if management determines that the price is reasonable.
- Small purchase: Includes purchases up to the Simplified Acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of sources.
- Sealed bids: Used for purchases over the Simplified Acquisition Threshold, which is currently $150,000. Under this purchase method, formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price. This method is the most common procurement method for construction contracts.
- Competitive proposals: Used for purchases over the Simplified Acquisition Threshold, which is currently $150,000. This procurement method requires formal solicitation, fixed-price or cost-reimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors.
- Noncompetitive proposals: Also known as sole-source procurement, this may be appropriate only when specific criteria are met. Examples include when an item is available only from one source, when a public emergency does not allow for the time of the competitive proposal process, when the federal awarding agency authorizes, or after a number of attempts at a competitive process, the competition is deemed inadequate.
Procurement Method
| Threshold | Regulation |
Micro-purchase | <$3,500* (*threshold delayed until July1, 2017; TUC will continue with $10,000 threshold until further notice) | Informal purchasing procedure (PO/Contract) acceptable; No competitive quotes required. |
Small purchase | $3,501 (*$10,000) - $150,000 | Informal purchasing procedure (PO/Contract) acceptable; Price or rate quotes must be obtained from an adequate number of sources. |
Sealed bids | >$150,000 | Formal solicitation required; Fixed price must be awarded to conforming bidder with lowest price; Most common for construction projects. |
Competitive proposals | >$150,000 | Formal solicitation required; Fixed-price or cost-reimbursement contracts; Awarded to most advantageous bidder, with price being one of the various factors. |
Noncompetitive proposals | all | Sole-source procurement Only when specific criteria are met:
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4. Quick Guide to Changes
MAJOR CHANGES IN THE UNIFORM GUIDANCE AFFECTING PROPOSAL BUDGETS AND CHARGING OF DIRECT COSTS
(On Federal and Federal Flow-through Projects)
Expenditure | Regulations |
ADMINISTRATIVE/ CLERICAL SALARIES Applicable Uniform Guidance (UG) Sections: |
Administrative and clerical salaries (in certain circumstances) can be included on competitive proposal budgets.
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COMPUTING DEVICES (UNDER $5,000 UNIT COST) Applicable UG Sections: |
Computing devices can be included on competitive proposal budgets.
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PARTICIPANT SUPPORT COSTS Applicable UG Sections: 200.75 |
Participant support costs can be included for agency approval on competitive proposal budgets.
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PROGRAMMATIC SALARY COSTS APPLICABLE UG SECTIONS: |
Costs related to protocol development and maintenance, managing substances/chemicals, managing and securing project‐specific data, and coordination of research subjects are allowable direct costs when they are “contributing and directly related to work under an agreement.” |
SUBAWARDS – F&A (IDC) Applicable UG Section: |
The subrecipient’s negotiated F&A rate or an alternative rate as described below must be used for all subawards included in competitive proposals.
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SUBAWARDS - FIXED PRICE/RATE Applicable UG Section: |
Agency prior approval is required to enter into fixed price/rate subawards, which may not exceed $150K.
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SUBAWARDS – SUBRECIPIENT MONITORING APPLICABLE UG SECTION: |
Subrecipient Risk assessments are required to determine appropriate monitoring.
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UNUSED SUPPLIES: Applicable UG Section: |
The recipient should be aware of the potential adverse impact of buying items in bulk or purchasing supplies toward the end of an award.
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VISA COSTS Applicable UG Section: |
Short-term, travel visa costs can be included on competitive proposal budgets. Since short-term visas are issued for a specific period and purpose, they can be clearly identified as directly connected to work performed on a Federal award and can be directly charged. They must be critical and necessary to (directly benefit) the project and be allowable by the agency. Typically, these visas allow employees and students to engage in field research or attend meetings in foreign locations, or allow foreign visitors to visit the University in support of the project. Long-term visa costs, such as those that enable employment at the University (for example “J” and “H1B” visas) are not allowable as direct charges.
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Publication and Printing Costs | Publication and printing costs may be charged before closeout if the cost are not incurred during the period of performance. These costs must be recorded within 90 days of the award end date |
Entertainment Costs | Costs of entertainment, including amusement, diversion, and social activities and any cost directly associated with such costs are still unallowable, except where specific costs that might otherwise be considered entertainment have a programmatic purpose, and are authorized either in the approved budget for the federal award or with prior written approval of the federal awarding agency. |
Cost of membership in civic or community organizations | With prior approval from the federal warding agency, cost of membership in any civic or community organization are allowable. |
Additional information about the Uniform Guidance is available at the Council on Financial Assistance Reform (COFAR) website. The COFAR website contains background information, FAQs, and links to the Uniform Guidance and supplemental materials. (https://www.cfo.gov)