Order of Precedence

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Oct 28, 2013 (3 years and 9 months ago)

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Order of Precedence

1)
Authorizing Legislation

̶
Congress

2)
Federal Agency Regulation

̶
Code
of Federal Regulation (CFR)

3)
Terms and Conditions of the Award

̶
Grant Award Document

4)
Federal Agency Policies

̶
OJP Financial Guide



18

Code of Federal Regulations

The Code of Federal Regulations (CFR)
is the codification of the general and
permanent rules published in the
Federal Register by the executive
departments and agencies of the Federal
Government.

19

Code of Federal Regulations

Department of Justice


28 CFR 66


Uniform Administrative
Requirements for Grants and Cooperative
Agreements to State and Local Governments

28 CFR 70


Uniform Administrative
Requirements for Grants and Agreements
(including
subawards
) with Institutions of
Higher Education, Hospitals, and other Non
-
Profit Organizations

20

4

Applies To

OMB

DOJ

Administrative
Requirements:

State & Local Units
of Government

Non
-
Profit

Organizations

OMB

A
-
102

OMB A
-
110

(2 CFR, Part 215)

28 CFR 66

28 CFR 70

Cost Principles:

Educational
Institutions

State &

Local Units
of Government

Non
-
Profit
Organizations

OMB A
-
21
(2 CFR, Part 220)

OMB A
-
87

(2 CFR, Part 225)

OMB A
-
122
(2 CFR, Part 230)

Included as
reference

in CFR

Audit
Requirements:

Educational

Institutions

Non
-
Profit
Organizations

State & Local Units
of Government

OMB A
-
133

Included

as
reference in CFR

Government
-
wide Common Rules

Common Rules:


Committee of Federal agency
representatives


“Uniform” requirements


Signed by Federal agencies


Limited exceptions granted by OMB


22

Government
-
wide Common Rules

1.
OMB A
-
102:

“Uniform Administrative Requirements for
Grants & Cooperative Agreements with
State & Local Governments”

Applicable to:

State & Local Units of Government

23

Government
-
wide Common Rules

2.
Suspension & Debarment (S&D)

-

Who is covered
? Direct recipients and


subrecipients


-
Exemption from certification
: Direct
recipients of a statutory entitlement
(BJA, OVC, OJJDP formula awards)

-
Subcontractors receiving $100K or less

-
Excluded Parties List System
:
http://www.sam.gov/

24

Government
-
wide Common Rules

3.
Drug
-
Free Workplace (DFW):

-

Who is covered
? Direct recipients and


subrecipients

who are state agencies.

-
Exemptions
: Subrecipients other than
state agencies

25

Government
-
wide Common Rules

4.
Lobbying:


-

Who is covered
? Direct recipients and
subrecipients


-
Note
: Any violation of the prohibition is
subject to a minimum $10,000 fine for each
occurrence

26

Lobbying Restrictions

Applicable to:


State & Local Units of Government


Non
-
Profit Organizations


Indian Tribes and Tribal Organizations


Commercial Entities


Individuals (direct or indirect)

27

Code of Federal Regulations

(2 CFE/Part


220/225/230)

also known as OMB Circular A21/87/122

Cost Principles for Educational
Institutions, State, Local and Indian
Tribal Governments, and Non
-
Profit
Organizations

28

Code of Federal Regulations

Major Provisions

Requires that a Cost be:


Allowable


Necessary to the performance of a project


Reasonable


Allocable to the project and consistently
treated


29

Code of Federal Regulations

Major Provisions

Requires that a Cost be:
(
cont
’)


Non
-
profitable


Claimed against only one award, and


Permissible under State & Federal laws
and regulations.

30

Classification of Costs

Direct Costs:


Costs identified specifically with an activity


Salaries and wages (including holidays,
sick leave, etc.) for direct labor employees


Other employee fringe benefits allocable to
direct labor employees

31

Classification of Costs

Direct Costs:
(cont.)


Consultant services contracted to
accomplish specific project objectives


Travel of direct labor employees


Materials/supplies purchased directly for
use on a specific project

32

33

Classification of Costs

Indirect costs generally are not readily
identifiable with a particular grant or
contract such as:


Maintenance of buildings


Telephone expense


Supplies


Depreciation


Rental expense

34

Classification of Costs

Indirect Costs Rates:


Provisional indirect costs rates adjusted to
actual (retroactive adjustment)


Predetermined rates (not normally subject
to adjustment)


Fixed rates (with roll or carry forward
adjustment in future period)


Cognizant Federal agency

35

Code of Federal Regulation
Major Provisions

The regulation DOES NOT:


Supersede limitation imposed by law


Dictate extent of Federal funds


Provide additional Federal funds for
indirect costs

37

Code of Federal Regulation
Major Provisions

The regulation DOES NOT:
(cont.)


Dictate how a government should use
funds


Relieve State & local governments of
stewardship responsibilities for Federal
funds

38

Selective Items of Costs


Accounting


Advertising


Alcoholic Beverages


Audit Services


Bad Debts


Contingencies

39

Selective Items of Costs


Contributions & Donations


Entertainment


Fines/Penalties


Fund Raising


Rental Costs


Under Recovery of Cost under
Federal Grants

40

Supplanting


To deliberately reduce State or local funds
because of the existence of Federal funds.


Example:


State funds are appropriated for a stated


purpose and Federal funds are awarded


for that same purpose. The State replaces


its State funds with Federal funds, thereby


reducing the total amount available for the


stated purpose.

41

How to Calculate
Match

42

Procurement Procedures /
General Guidance


State and locals have their own
regulations.


If State or local procedures offer more
efficient protection for the Federal Dollar
use them

IF NOT USE THE FEDERAL.


Documentation. Very important! Contract
files must establish an audit trail.
Documentation should be sufficient
enough to stand on its own.

43

General Guidance /
Competition


Both the Common Rule A
-
102 and OMB
Circular 2 CFR Part 215 require
competition ON CONTRACT AWARDS.


Bidders’ lists should be continually
updated.


Newspaper/other advertising of contract
requirement


very important.

44

General Guidance /
Competition


Local preference laws relative to contract
award


discouraged by Federal agencies.


Local preference should only be used
when a wider distribution is not possible
.

45

Sole Source Contract


Federal awarding agency’s approval of sole
source is required for procurements over
$100K.


Use when:


The item or service is available only from a single
source.


A true public exigency or emergency exists.


After competitive solicitation, competition is
considered inadequate.


A for
-
profit entity not eligible to be a direct recipient
may not be awarded a sole source contract.

46

Sole Source Justification /
Sample Outline

Paragraph

Content

1

Brief description

of program and what product or service is
being contracted for:

2

Explanation of why it is necessary to contract non
-
competitively,

to include:


Expertise of contractor


Management


Knowledge of the program


Responsiveness


Expertise of personnel

47

Sole Source Justification /
Sample
Outline

Paragraph

Content

3

When contractual

coverage is required and what impact on
the program, if dates are not met. How long would it take
another contractor to reach the same level of competence
(equate in $$).

4

Uniqueness.

48

Sole Source Justification /
Sample Outline

Paragraph

Content

5

Other points that

should be covered to “sell the case.”

6

A declaration that this action is in the “best interest” of the

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49

Contracting Do’s

1)
Compete

2)
Prepare IFB/RFP

3)
Maintain bidders list

4)
Conduct interviews

5)
Obtain prior approval

6)
Make documentation available

50

Contracting Don’ts

1)
Place unreasonable requirements

2)
Require unnecessary experience

3)
Engage in noncompetitive pricing

4)
Engage in organizational conflicts
of interest

5)
Require unreasonable timeframe

51

List of Parties Excluded From Federal
Procurement or Non
-
Procurement Programs

Frequently Asked Questions:
https://www.epls.gov/epls/jsp/FAQ.jsp

Electronic List of Parties
http://www.epls.gov
/

Federal Service Desk:

1
-
866
-
606
-
8220

52