CLEARED FOR EXTERNAL DISTRIBTION -- 1/12/2022

1

PROCUREMENT GUIDANCE FOR EDA AWARDS

Procurement of property and services is a common post-award activity, and this resource is intended to support EDA staff in communicating

compliance requirements. All EDA recipients must adhere to federal procurement standards in procurements under an EDA award. As with 

the Uniform Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance), these rules also apply to 

subrecipients, and recipients are responsible for monitoring subrecipients to ensure compliance with all award conditions and requirements.

Importantly, per 2 C.F.R. § 200.317, States (and entities that are required by State law to follow State procurement requirements) are 

required to follow their own procurement requirements; therefore, the below guidance does not apply to State recipients. EDA retains the 

right to request and review award documentation at any point in the period of performance.

1

To see the full text of the Procurement Standards of the Uniform Guidance, refer to 2 C.F.R. 200.317 – 200.327. 

1 Please note that this document is a summary of the Procurement Standards set out in the Uniform Guidance (2 C.F.R. 200.217 – 200.327) and is for information only. It does not 

constitute EDA guidance and does not supersede the language of the Uniform Guidance. Please contact EDA with questions. 

Informal procurement methods – for procurements up to $250,000

2 CFR 200.320(a)

Procurement amount Type of procurement Requirements

$10,000 and under

Please note that if the Recipient or 

Subrecipient maintains appropriate 

documentation, the Recipient or 

Subrecipient may increase the micropurchase threshold to $50,000 in 

accordance with the requirements at 

2 CFR 200.320(a)(1)(iv). 

Micro-purchase Micro-purchases may be awarded without soliciting competitive price 

or rate quotations if the Recipient or Subrecipient considers the price to 

be reasonable based on research, experience, purchase history or other 

information and documents the Recipient or Subrecipient’s files 

accordingly. Purchase cards can be used for micro-purchases if 

procedures are documented and approved by the non-Federal entity.

Between $10,000 and $250,000 Small purchase If small purchase procedures are used, price or rate quotations must be 

obtained from an adequate number of qualified sources as determined 

appropriate by the non-Federal entity.

In general, at least three qualified sources are considered “an adequate 

number of qualified sources.”
CLEARED FOR EXTERNAL DISTRIBTION -- 1/12/2022

2

PROCUREMENT GUIDANCE FOR EDA AWARDS

Formal procurement methods – for procurements over $250,000

Formal procurements require one of the following methods as appropriate to the type of procurement

2 CFR 200.320(b)

Procurement amount Type of procurement Requirements

Over $250,000 Sealed bids – a procurement method in which bids 

are publicly solicited and a firm fixed-price contract 

(lump sum or unit price) is awarded to the 

responsible bidder whose bid, conforming with all 

the material terms and conditions of the invitation 

for bids, is the lowest in price.

Preferred in the following conditions:

A. A complete, adequate, and realistic specification 

or purchase description is available;

B. Two or more responsible bidders are willing and 

able to compete effectively for the business; and

C. The procurement lends itself to a firm fixed price 

contract and the selection of the successful bidder 

can be made principally on the basis of price.

If sealed bids are used, the following requirements apply:

A. Bids must be solicited from an adequate number of 

qualified sources, providing them sufficient response time 

prior to the date set for opening the bids, for local, and tribal 

governments, the invitation for bids must be publicly 

advertised;

B. The invitation for bids, which will include any 

specifications and pertinent attachments, must define the 

items or services in order for the bidder to properly respond;

C. All bids will be opened at the time and place prescribed in 

the invitation for bids, and for local and tribal governments, 

the bids must be opened publicly;

D. 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, 

transportation 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

E. Any or all bids may be rejected if there is a sound 

documented reason.
CLEARED FOR EXTERNAL DISTRIBTION -- 1/12/2022

3

PROCUREMENT GUIDANCE FOR EDA AWARDS

Over $250,000 Proposals – a procurement method in which either a 

fixed price or cost-reimbursement type contract is 

awarded.

Generally used when conditions are not appropriate 

for the use of sealed bids. 

They are awarded in accordance with the following 

requirements:

A. Requests for proposals must be publicized and identify all 

evaluation factors and their relative importance. Proposals 

must be solicited from an adequate number of qualified 

offerors. Any response to publicized requests for proposals 

must be considered to the maximum extent practical;

B. The non-Federal entity must have a written method for 

conducting technical evaluations of the proposals received 

and making selections;

C. Contracts must be awarded to the responsible offeror 

whose proposal is most advantageous to the non-Federal 

entity, with price and other factors considered; and

D. The non-Federal entity may use competitive proposal 

procedures for qualifications-based procurement of 

architectural/engineering (A/E) professional services 

whereby offeror's qualifications are evaluated and the most 

qualified offeror is selected, subject to negotiation of fair and 

reasonable compensation. The method, where price is not 

used as a selection factor, can only be used in procurement 

of A/E professional services. It cannot be used to purchase 

other types of services though A/E firms that are a potential 

source to perform the proposed effort.
CLEARED FOR EXTERNAL DISTRIBTION -- 1/12/2022

4

PROCUREMENT GUIDANCE FOR EDA AWARDS

Noncompetitive procurements – applicable to noncompetitive procurements of any amount

2 CFR 200.320(c)

Procurement amount Type of procurement Requirements

Any amount Non-competitive

Please note: noncompetitive procurements are 

rarely approved. 

Noncompetitive procurement can only be awarded if one or 

more of the following circumstances apply:

A. The acquisition of property or services, the aggregate 

dollar amount of which does not exceed the micro-purchase 

threshold (see 2 CFR 200.320(a)(1));

B. The item is available only from a single source;

C. The public exigency or emergency for the requirement will 

not permit a delay resulting from publicizing a competitive 

solicitation;

D. The Federal awarding agency or pass-through entity 

expressly authorizes a noncompetitive procurement in 

response to a written request from the non-Federal entity; or

E. After solicitation of a number of sources, competition is 

determined inadequate.