Procurement Procedures

(a) All subgrantees shall establish written procurement procedures. These procedures shall provide, at a minimum, that the conditions in paragraphs (a) (1), (2), and (3) of this section apply.
  • (1) Subgrantees avoid purchasing unnecessary or duplicate items.
  • (2) Where appropriate, an analysis is made of lease and purchase alternatives, and any other appropriate analysis, to determine which would be the most economical and practical procurement for the use of federal funds.
  • (3) Solicitations for goods and services provide for all of the following: A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition.
    • (i) Requirements which the bidder must fulfill and all other factors to be used in evaluating bids or proposals.
    • (ii) A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards.
    • (iii) The specific features of “brand name or equal” descriptions that bidders are required to meet when such items are included in the solicitation.
    • (iv) The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement.
    • (v) Preference, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient.
(b) Positive efforts shall be made by subgrantees to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible. Subgrantees of federal awards shall take all of the following steps to further this goal.
  • (1) Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable.
  • (2) Make information on forthcoming opportunities available and arrange time frames for purchases and subcontracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises.
  • (3) Consider in the subcontract process whether firms competing for larger subcontracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises.
  • (4) Encourage subcontracting with consortiums of small businesses, minority-owned firms and women's business enterprises when a subcontract is too large for one of these firms to handle individually.
  • (5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority-owned firms, and women's business enterprises.
(c) The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) shall be determined by the subgrantee, but shall be appropriate for the particular procurement and for promoting the best interest of the Traffic Safety Program or project involved. The “cost-plus-a-percentage-of-cost” or “percentage of construction cost” methods of contracting shall not be used.
(d) Subcontracts shall be made only with responsible subcontractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as subcontractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources.