Common use of Methods of Procurement Clause in Contracts

Methods of Procurement. (1) Each State and subrecipient shall use one of the following methods of procurement, as appropriate for each procurement action: (i) Small purchase procedures—simple and informal procurement methods for securing services, supplies, or other property that do not cost more than $25,000 in the aggregate. Recipients and subrecipients shall not break down one purchase into several purchases merely to be able to use small purchase proce- dures. The Governor shall establish standards for small purchase proce- dures to ensure that price or rate quotations will be documented from an adequate number of qualified sources. (ii) Sealed bids (formal advertising)— bids are publicly solicited procure- ments for which a firm-fixed-price award (lump sum or unit price) or other fixed-price arrangement is awarded to the responsible bidder whose bid, conforming with all the ma- terial terms and conditions of the invi- tation for bids, is the lowest in price. The Governor shall establish standards for sealed bids which include require- ments that invitations for bids be pub- licly advertised, and that bids be solic- ited from an adequate number of orga- nizations. (iii) Competitive proposals—normally conducted with more than one source submitting an offer and either a fixed- price or cost-reimbursement type award is made. The Governor shall es- tablish standards for competitive pro- posals which include requirements for the establishment of a documented methodology for technical evaluations and award to the responsible offeror whose proposals are most advantageous to the program with price, technical, and other factors considered.

Methods of Procurement. (1) Each State and subrecipient shall use one of the following methods of procurement, as appropriate for each procurement action: (i) Small purchase procedures—simple and informal procurement methods for securing services, supplies, or other property that do not cost more than $25,000 in the aggregate. Recipients and subrecipients shall not break down one purchase into several purchases merely to be able to use small purchase proce- dures. The Governor shall establish standards for small purchase proce- dures to ensure that price or rate quotations will be documented from an adequate number of qualified sources. (ii) Sealed bids (formal advertising)— bids are publicly solicited procure- ments for which a firm-fixed-price award (lump sum or unit price) or other fixed-price arrangement is awarded to the responsible bidder whose bid, conforming with all the ma- terial terms and conditions of the invi- tation for bids, is the lowest in price. The Governor shall establish standards for sealed bids which include require- ments that invitations for bids be pub- licly advertised, and that bids be solic- ited from an adequate number of orga- nizations. (iii) Competitive proposals—normally conducted with more than one source submitting an offer and either a fixed- price or cost-reimbursement type award is made. The Governor shall es- tablish standards for competitive pro- posals which include requirements for the establishment of a documented methodology for technical evaluations and award to the responsible offeror whose proposals are most advantageous to the program with price, technical, and other factors considered.fixed-