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Federal Procurement Requirements
When an agency has a procurement need that is funded in any part with federal funds, the agency must identify the source of the funding to Procurement & Payables (P&P) when submitting the initial Service Request. This information is imperative to ensure that the procurement is conducted per the federal rules as outlined in CON 7-8-2-EP as well as the funding source requirement documents.
For more detailed questions please work with your P&P Buyer or Contract Specialist to ensure the procurement follows all federal requirements set forth in 2 CFR 200 Sections 318-326.
- King County P&P Buyers have standard work that require evaluators on all Requests for Proposals to sign a conflict of interest determination before reviewing proposals. If the King County employee fails to sign the conflict of interest and non-disclosure documents they are removed from the evaluation panel. 2 CFR 200.318 (c) (1)
- P&P will maintain records sufficient to detail the history of the procurement. These records will include, but is not limited to, the following; rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. 2 CFR 200.318 (i)
- King County may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. King County must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. 2 CFR 200.318 (j) (1)(2)
- All procurement transactions shall be conducted in a manner providing full and open competition. In order to ensure objective contractor performance and eliminate unfair competition advantage, contractors that develop or draft specifications, requirements, statements of work, or invitation for bids or requests for proposals must be excluded from competing for such procurements. 2 CFR 200.319 (a)
- King County shall not restrict competition by placing unreasonable requirements on firms in order for them to qualify to do business, requiring unnecessary experience and excessive bonding, allow noncompetitive pricing practices between firms or between affiliated companies, award noncompetitive contracts to consultants that are on retainer contracts, not preventing organizational conflicts of interest, specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement, or taking any arbitrary action in the procurement process. 2 CFR 200.319 (a) (1-7)
- King County shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. 2 CFR 200.319 (b)
- King County may use sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. 2 CFR 200.320 (c)
- If sealed bids are used the following requirements apply; bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening bids and the bids must be opened publicly. The invitation for bids, which will include any technical specifications, plans, and pertinent attachments, must define the items or services in order for the bidder to properly respond. All bids will be opened at the time and place prescribed in the bid documents. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Any or all bids may be rejected if there is sound documented reason. 2 CFR 200.320 (c) (2)
- King County may conduct competitive proposals as a procurement type when conditions are not appropriate for the use of sealed bids. When this method is used, the following requirements apply: Requests for proposals are publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals shall be considered to the maximum extent practical. Proposals are solicited from an adequate number of qualified sources. King County has a written method for conducting technical evaluations of the proposals received and for selecting recipients. Contracts shall be awarded to the responsible firm whose proposal is most advantageous to King County, with price and other factors considered. 2 CFR 200.320 (d)
- King County will perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold ($250,000) including contract modifications. 2 CFR 200.323 (a)
- King County will negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. CFR 200.323 (b)
- Costs or prices based on estimated costs for contracts under a Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for King County. 2 CFR 200.323 (c)
- King County P&P Contract Specialists have standard work that require evaluators on all AE procurements to sign a conflict of interest determination before reviewing proposals. If the King County employee fails to sign the conflict of interest and non-disclosure documents they are removed from the evaluation panel. 2 CFR 200.318 (c) (1).
- The P&P Contract Specialist will review the scope of work and will encourage value engineering scope of work activities for all engineering contracts that will be federally funded. 2 CFR 200.318 (g).
- P&P will maintain records sufficient to detail the history of the procurement. These records will include, but is not limited to the following; rationale for the method of procurement, selection of contract type, consultant selection or rejection, and the basis for the contract price. 2 CFR 200.318 (i).
- All procurement transactions must be conducted in a manner providing full and open competition. In order to ensure objective consultant performance and eliminate unfair competition advantage, consultants that develop or draft specifications, requirements, statements of work, or invitation for bids or requests for proposals must be excluded from competing for such procurements. 2 CFR 200.319 (a).
- When contracting for A/E services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. 2 CFR 200.19 (a) (7).
- 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 used as a selection factor, can only be used in procurement of professional services. 2 CFR 200.320 (d) (5).
- Procurement by noncompetitive proposals is through solicitation of a proposal from only one source and may only be used after a number of sources have been solicited and competition is determined to be inadequate. 2 CFR 200.320 (f).
- King County must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold ($250,000) including all contract odifications. Profit must be negotiated as separate element of the price for all contracts. 2 CFR 200.323 (a) (b).
- The P&P Contract Specialist will review the technical specifications and will encourage value engineering activities for all construction contracts that will be Federally funded. 2 CFR 200.318 (g).
- P&P will maintain records sufficient to detail the history of the procurement. These records will include, but is not limited to the following; rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. 2 CFR 200.318 (i).
- King County may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. King County must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. 2 CFR 200.318 (j) (1)(2)
- King County must use sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction as long as the following conditions are met: 2 CFR 200.320 (c )
- A set of general technical specifications is included in the ITB, solicitation is advertised to the general public for bids, 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 the low responsive and responsible bidder. 2 CFR 200.320 (c ) (1)
- If sealed bids are used the following requirements apply; bids must be solicited from an adequate number of known suppliers , providing them sufficient response time prior to the date set for opening bids- and the bids must be opened publicly. 2 CFR 200.320 (c ) (2).
- The invitation for bids, which will include any technical specifications, plans, and pertinent attachments, must define the items or services in order for the bidder to properly respond; 2 CFR 200.320 (c ) (2).
- All bids will be opened at the time and place prescribed in the bid documents. 2 CFR 200.320 (c ) (2).
- A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. 2 CFR 200.320 (c ) (2).
- Any or all bids may be rejected if there is sound documented reason. 2 CFR 200.320 (c ) (2).
- The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. 2 CFR 200.323 (d).
- For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition threshold ($250,000) King County may accept bonding policy and requirements that King County has made a determination that the Federal interest is adequately protected. The minimum requirements are: 2 CFR 200.325
- A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. 2 CFR 200.325 (a).
- A performance bond on the part of the contractor for 100 percent of the contract price. 2 CFR 200.325 (b).
- A payment bond on the part of the contractor for 100 percent of the contract price. 2 CFR 200.325 (c).
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