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CHAPTER 2-230

PROCUREMENT GUIDELINES

2-230-00 What does this chapter do?

2-230-10 Where do these policies come from?

2-230-20 What is procurement?

2-230-30 What procurement rules must states follow? 

2-230-40 What procurement rules must recipients other than states follow?

2-230-50 What provisions must you include in contracts?

2-230-60 Do the Davis-Bacon Act and Contract Work Hours and Safety Standards Act 

apply to contracts supported with OSMRE funds?

2-230-00 What does this chapter do?

This chapter provides guidelines for procurement with funds from assistance agreements 

awarded by us, the Office of Surface Mining Reclamation and Enforcement (OSMRE) to you, 

the recipient. The purpose of this guidance is to ensure that you get the materials and services 

your project needs efficiently and appropriately. 

2-230-10 Where do these policies come from?

Requirements for procurements with Federal funds are found in Federal laws and the Uniform 

Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, at 2 

CFR Part 200, Appendix II. 

2-230-20 What is procurement?

Procurement is the act or process of purchasing the services and goods your program needs.

2-230-30 What procurement rules must states follow? 

You must use the same policies and procedures you use for procurements with state funds. You 

must ensure that every purchase order or contract includes any clauses required by Federal 

statutes, executive orders and regulations. 

2-230-40 What procurement rules must recipients other than states follow?

You, a recipient other than a state, will use your own procurement procedures based on state and 

local laws and regulations. However, the procurements must follow applicable Federal law and 

the standards in 2 CFR Part 200 Subpart D. These standards include the following requirements.

A. Your system must ensure that procurements are effective, efficient and economical. Plan 

and carry out procurement transactions so as to provide full and open competition. 

Analyze proposed procurements to ensure that they are necessary and the cost is 
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reasonable. Consider alternative sources and methods to reduce costs. Make awards 

only to responsible contractors with the ability to perform successfully. Maintain a 

contract management system which ensures that contractors perform in accordance with 

the terms of the contract. 

B. You must ensure that no employee, officer or agent of your organization with a conflict 

of interest, real or apparent, will participate in the selection, award, or administration of a 

contract.

C. You must settle all contractual issues in accordance with good administrative practice and 

sound business judgment. We will not step in and substitute our judgment for yours 

unless the matter is primarily a Federal concern. You must refer violations of law to the 

local, state, or Federal authority with jurisdiction.

D. You must have a protest procedure to resolve procurement disputes. You must inform us 

of protests. A protestor must exhaust all of your administrative remedies before pursuing 

a protest with us. We will review protests of your contracts only if there is a violation of 

Federal law or regulations, or a violation of your protest procedures.

E. You must maintain records detailing the significant history of each procurement 

action. These records must include, but are not limited to, the reason for selecting the 

method of procurement and the type of contract, contractor selection or rejection, and the 

basis for the price.

2-230-50 What provisions must you include in contracts?

A. Both your contracts and the contracts of your sub-recipients must include the following 

provisions:

1. All contracts must include notice of OSMRE requirements and regulations about:

a. Reporting.

b. Copyrights and rights in data.

c. Patent rights for any discovery or invention which arises or is developed 

under the contract.

2. All contracts must require contractors to keep all records, paper or electronic, 

which are pertinent to the contract. Contractors must retain all required records 

for three years after you make final payments and close all pending matters. 

Contractors must allow you, us, the Department of the Interior, the Comptroller 

General of the United States, or any authorized representatives, access to all 
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records for the purpose of making audit, examination, excerpts, and 

transcriptions.

3. All contracts must recognize mandatory standards and policies relating to energy 

efficiency contained in the state energy conservation plan issued in compliance 

with the Energy Policy and Conservation Act (P.L. 94-163, 89 Stat.871).

4. All contracts over the small purchase threshold must include administrative, 

contractual, or legal remedies for contractors who violate contract terms, and 

provide appropriate sanctions and penalties.

5. All contracts over $10,000 must include provisions that allow you to terminate the 

contract for cause or for convenience. They must include notice of your 

termination procedures.

6. All construction contracts and subcontracts over $10,000 must require compliance 

with Executive Order (E.O.)11246, Equal Employment Opportunity, E.O. 11375, 

and related Department of Labor regulations (41 CFR Part 60).

7. All contracts for construction or repair must require compliance with the 

Copeland "Anti-Kickback" Act (18 USC 874) and related Department of Labor 

regulations (29 CFR Part 3).

8. All contracts for supplies or construction materials must require compliance with 

the Buy American Act (41 USC Chapter 83). 

9. All contracts, subcontracts, and subgrants over $100,000 must require compliance 

with all applicable standards and requirements issued under section 306 of the 

Clean Air Act (42 USC 1857(h)), section 508 of the Clean Water Act (33 USC 

1368), E.O. 11738, and Environmental Protection Agency regulations (40 CFR 

Part 15).

B. We may also require provisions on changes, remedies, changed conditions, record 

retention and access, suspension of work, and other clauses approved by the Office of 

Federal Procurement Policy.

2-230-60 Do the Davis-Bacon Act and Contract Work Hours and Safety Standards Act 

apply to contracts supported with OSMRE funds?

A. While SMCRA does not include a prevailing wage provision or require that you comply 

with the Davis-Bacon Act (40 USC 3141-3148), all contracts made by you under a 

Federal award in excess of $2,000 must include a provision for compliance with the 

Davis-Bacon Act in your contracts.
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B. The Davis-Bacon Act applies when OSMRE deals directly with a private contractor. We 

will include Davis-Bacon provisions when we award contracts directly for Federal 

regulatory or reclamation programs.

C. While SMCRA does not require you to comply with the Contract Work Hours and Safety 

Standards Act (40 USC 327-330), all contracts you award in excess of $100,000 that 

involve the employment of mechanics or laborers must include provision for compliance 

with 40 USC 3702 and 3704.