CBB(LEGAL) - STATE AND FEDERAL REVENUE SOURCES: FEDERAL

Retirement and Insurance Contributions

Under the Texas Public School Retired Employees Group Benefits Act, Insurance Code Chapter 1575, a district that applies for money provided by the United States or a privately sponsored source shall, if any of the money will pay part or all of an active employee's salary, also apply for any legally available money to pay state contributions required by Insurance Code Chapter 1575, Subchapter E. Insurance Code 1575.252

Such district must comply with the requirements of Insurance Code Chapter 1575, Subchapter F. Insurance Code 1575.252(2)–.257

Block Grant Funds

Education Department General Administrative Regulations (EDGAR)

Note: For information regarding procurement under state law, see the CH policy series regarding Purchasing and Acquisition and the CV series regarding Facilities Construction.

Uniform Guidance (2 C.F.R. 200)

Note: The Uniform Guidance applies to all new grant awards and non-competing continuations (NCCs) made on or after December 26, 2014 (see 2 C.F.R. 200.110).

General Compliance

Disclosures

Conflicts
Crimes

Procurement Standards

District Procedures
Oversight
Conflicts of Interest
Records

Financial Management

Internal Controls
  1. Establish and maintain effective internal control over the federal award that provides reasonable assurance that the district is managing the award in compliance with federal statutes, regulations, and the terms and conditions of the award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
  2. Comply with federal statutes, regulations, and the terms and conditions of the award.
  3. Evaluate and monitor the district's compliance with statutes, regulations and the terms and conditions of federal awards.
  4. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings.
  5. Take reasonable measures to safeguard protected personally identifiable information and other information the federal awarding agency or pass-through entity designates as sensitive or the district considers sensitive consistent with applicable federal, state, local, and tribal laws regarding privacy and obligations of confidentiality.
  1. Effectiveness and efficiency of operations;
  2. Reliability of reporting for internal and external use; and
  3. Compliance with applicable laws and regulations.

Competition

Procurement Methods

Note: For information on the amounts of the micro-purchase threshold and the simplified acquisition threshold, see OMB Memorandum M-18-18, TEA's To the Administrator Addressed letter (August 28, 2018), and New TEA Guidance on Micro-Purchase Flexibility Under EDGAR. For information regarding these thresholds and school nutrition purchases, see the Texas Department of Agriculture (TDA) Food and Nutrition Division's Administrator's Reference Manual, Section 17.

Micro-Purchases
Small Purchases
Simplified Acquisition Threshold
Sealed Bids
  1. A complete, adequate, and realistic specification or purchase description is available;
  2. Two or more responsible bidders are willing and able to compete effectively for the business; and
  3. 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.
  1. Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids, for local governments, the invitation for bids must be publicly advertised;
  2. 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;
  3. All bids will be opened at the time and place prescribed in the invitation for bids, and for local governments, the bids must be opened publicly;
  4. 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
  5. Any or all bids may be rejected if there is a sound documented reason.
Competitive Proposals
  1. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;
  2. Proposals must be solicited from an adequate number of qualified sources;
  3. The district must have a written method for conducting technical evaluations of the proposals received and for selecting recipients;
  4. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and
  5. The district may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor 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 are a potential source to perform the proposed effort.
Sole Source
  1. The item is available only from a single source;
  2. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
  3. The federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-federal entity; or
  4. After solicitation of a number of sources, competition is determined inadequate.
Cooperative Purchasing

Affirmative Steps

  1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
  2. Assuring that small and minority businesses and women's business enterprises are solicited whenever they are potential sources;
  3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
  4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
  5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
  6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) above.

Pre-procurement Review

  1. The district's procurement procedures or operation fails to comply with the procurement standards in 2 C.F.R. Part 200;
  2. The procurement is expected to exceed the simplified acquisition threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation;
  3. The procurement, which is expected to exceed the simplified acquisition threshold, specifies a "brand name" product;
  4. The proposed contract is more than the simplified acquisition threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or
  5. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the simplified acquisition threshold.

Contract Cost and Price

Contract Provisions

Suspension and Debarment

Remedies for Noncompliance

  1. Temporarily withhold cash payments pending correction of the deficiency by the district or more severe enforcement action by the federal awarding agency or pass-through entity.
  2. Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.
  3. Wholly or partly suspend or terminate the federal award.
  4. Initiate suspension or debarment proceedings as authorized under 2 C.F.R. Part 180 and federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a federal awarding agency).
  5. Withhold further federal awards for the project or program.
  6. Take other remedies that may be legally available.

Travel Costs

Property Standards

Federally Owned Property
Property Trust Relationship
Real Property

Subject to the obligations and conditions set forth in 2 C.F.R. 200.311, title to real property acquired or improved under a federal award will vest upon acquisition in the district.

Except as otherwise provided by federal statutes or by the federal awarding agency, real property will be used for the originally authorized purpose as long as needed for that purpose, during which time the district must not dispose of or encumber its title or other interests.

  1. Retain title after compensating the federal awarding agency an amount determined under 2 C.F.R. 200.311(c)(1).

Sell the property and compensate the federal awarding agency an amount determined under 2 C.F.R. 200.311(c)(2).

Transfer title to the federal awarding agency or to a third party designated/approved by the federal awarding agency. The district is entitled to be paid an amount calculated by applying the district's percentage of participation in the purchase of the real property (and cost of any improvements) to the current fair market value of the property.

2 C.F.R. 200.311

Equipment
Title and Use
  1. Use the equipment for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project.
  2. Not encumber the property without approval of the federal awarding agency or pass-through entity.
  3. Use and dispose of the property in accordance with the provisions below.
Disposition
Supplies
Intangible Property

Direct Grant Programs

State-Administered Programs

General Education Provision Act

Calhoun County ISD

CBB(LEGAL)-P

UPDATE 113

DATE ISSUED: 6/4/2019