Procurement Standards for Illinois State Grant Recipients

Introduction

• Purpose: Training on procurement standards for grantees of Illinois state funds.

What is Procurement?

• Definition: Obtaining equipment, materials, or supplies.
• Requirements: Grantees must comply with state standards, usually involves competitive bidding.
• Key Regulations: 2 CFR 200.317-327, policy must be documented and not verbal.

Importance of Procurement Policy

• Efficiency: Ensures funds are used efficiently and transparently.
• Compliance: Avoids non-compliance and potential penalties.
• Documentation: Must be written and well-communicated within the organization.
• Risk: Verbal policies can lead to bending rules and inconsistencies.

Bid Stringing

• Definition: Deliberately breaking down purchases to evade formal bidding requirements.
• Legal Implications: Class IV felony.
• Example: Townville breaking a $150,000 purchase into three $50,000 parts.

Procurement Types

1. Micro Purchases

• Threshold: Below $10,000; can be increased up to $50,000 with documentation.
• Requirements: Must be reasonable; grantees encouraged to shop around.
• Example: Buying batteries for $14.99, knowing the reasonable price is below $18.

2. Small Purchases

• Threshold: More than micro purchases but below $250,000.
• Requirements: Requires quotes from multiple vendors (at least three suggested).
• Example: Comparing quotes from three dealerships for a specific car.

3. Sealed Bids

• Threshold: Above $250,000 or lower if set by grantee.
• Process: Public solicitation, bids opened at the same time, documented procedures.
• Requirements: At least two bidders; full documentation required.

4. Proposals

• When to Use: If exact needs can't be specified or other evaluation criteria are important.
• Evaluation: Based on quality and capability, not just cost.
• Requirements: Public solicitation, adequate time for submission, thorough review.

5. Non-Competitive Purchases

• When to Use: Emergency, single-source availability, or single bidder.
• Examples: Replacing a vital piece of equipment only available from one vendor.
• Action: Contact Grant manager for guidance.

General Guidelines

• Documentation: Keep all policies, solicitations, bids, receipts, invoices, etc.
• Compliance: Follow state procurement standards as stated in the Notice of Funding Opportunity and grant agreement.
• Transparency: Bigger the purchase, the more formal the policy.
• Avoiding Issues: Do not string purchases to evade thresholds.

Resources

• Federal Acquisition Regulations: Acquisition.gov
• DCEO Grant Training: Visit grantee resources page.
• Contact Information: CEO.GrantHelp@illinois.gov