Uniform Guidance

Bonding Requirements

§ 200.326

Charging Administrative/Clerical and Programmatic Salary Costs

§ 200.413 (c)
§ 200.430

The UG states administrative salaries are allowable and can be direct charges if all of the following requirements are met:

• Administrative and clerical salaries are integral to a project or activity, and
• Individuals involved can be specifically identified with the project or activity, and
• Such costs are explicitly included in the budget or have prior written approval of the federal awarding agency, and
• The costs are not also recovered as indirect costs

The ‘major project’ requirement in A-21 is eliminated, but the allowable, allocable and reasonable standards still apply. Administrative salaries may be considered integral to a project when the level of service needed is identifiably above and beyond that which is provided on a routine basis by the department.

Competition

§ 200.319

All procurement transactions must be conducted in a manner providing full and open competition consistent with standards in this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals (bids) must be excluded from competing for such procurements.

Situations considered restrictive to competition include but are not limited to:

• Placing unreasonable requirements on firms in order for them to qualify to do business
• Specifications cannot place unreasonable requirements on firms to qualify, nor require unnecessary experience
• Noncompetitive pricing practices between firms or between affiliated companies
• Noncompetitive contracts to consultants that are on retainer contracts
• 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
• Any arbitrary action in the procurement process. Procurements must be conducted 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. Nothing in this section preempts state licensing laws.

GSSC maintains written policies and procedures for all types of procurement transactions. These policies and procedures include taking into consideration the items listed below for all applicable procurement transactions.

• Requests for procurements must incorporate a clear and accurate description of the technical requirements for the material, product or service to be procured. Such descriptions must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated
• GSSC, in conjunction with requestors, must identify all requirements that the offers must fulfill and all other factors to be used in evaluating bids or proposals
• GSSC will ensure that all prequalified lists of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. In addition, GSSC ensures that potential bidders are not precluded from qualifying during the solicitation period.

Contract Cost and Price

§ 200.324

Uniform Guidance requires extensive supporting documentation on procurements of $250,000 or more. PIs must contact GSSC for any proposed procurement of $250,000 or more prior to communication with potential suppliers. GSSC will obtain competitive proposals and perform the required cost or price analysis as described below:

• A cost or price analysis must be performed for every procurement action of $250,000 or more, including modifications to existing contracts. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the requestor or PI must make independent estimates before receiving bids or proposals.
• Profit must be negotiated as a separate element of the price for all Sole Source (noncompetitive proposal) procurements and in each case where a cost analysis is performed in order to establish a fair and reasonable profit for the procurements. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance and industry profit rates in the surrounding geographical area for similar work.
• Costs or prices based on estimated costs are allowable only to the extent that costs incurred or included in the cost estimate would be allowable under Uniform Guidance Part 200 Subpart E-Cost Principles
• Cost plus a percentage of cost and percentage of proposals must not be used in establishing Purchase Order (PO) contracts

Contract Provisions

§ 200.327

As required by Uniform Guidance § 200.327, the Office of Research Purchase Order Terms and Conditions have been updated to include applicable provisions by incorporation of Appendix II to Part 200—Contract Provisions for non-Federal Entity Contracts Under Federal Awards for all procurements funded by federal grants. Note that procurement of recovered materials, section § 200.323, is included in Appendix II to Part 200.

• GSSC recommends that when requesting informal verbal or written price quotations (offers), you inform potential vendors that any subsequent purchase will be conditioned upon the vendor’s acceptance of the Office of Research Purchase Order Terms and Conditions.

Contracting with Small and Minority Businesses, Women’s Business Enterprises and Labor Surplus Area Firms

§ 200.321

Uniform Guidance requires us to take “affirmative steps” to use small businesses (and socioeconomic subsets of small businesses) whenever possible. It is university policy to promote the procurement of goods and services from small, small-disadvantaged and woman-owned businesses and vendors located in labor surplus areas whenever possible. It is the responsibility of both the PI and GSSC to direct purchases toward these types of businesses. GSSC will take the following affirmative steps:

• Review small business lists prior to soliciting competitive proposals (see § 200.319 & § 200.320) and solicit quotes from small businesses and place qualified small businesses on solicitation lists as appropriate
• Review requisitions and work with PIs to determine if requirements can be divided into smaller tasks or quantities, or delivery schedules can be modified to allow increased opportunities for small businesses

OSP’s small business subcontracting administrator will provide guidance and serve as a liaison to organizations such as the Small Business Administration and Minority Business Development Agency.

Cost Sharing or Matching

§ 200.306

The Uniform Guidance clarifies cost share requirements as follows:

• Funding announcements must state whether there is required cost sharing, matching, or cost participation without which an application would be ineligible
• If cost sharing is not required, the announcement must explicitly say so
• Voluntary committed cost sharing (institutional cost share proposed but not required) is not expected in federal research proposals and cannot be used as a factor during the merit review of applications or proposals, but may be considered if it is in accordance with Federal awarding agency regulations and specified in a notice of funding opportunity. Criteria for considering voluntary committed cost sharing and any other program policy factors that may be used to determine who may receive a Federal award must be explicitly described in the notice of funding opportunity.

Direct Charging Computing Devices

§ 200.453 (c)

Computing devices are allowable as a direct cost if the devices are essential and allocable, but not solely dedicated, to the performance of a federal award:

• Computing device must be necessary and reasonable for the performance of the work, but it need no longer be used exclusively for the project
• The device must be charged to the project in some manner that reasonably relates to its use on the project
• PI/department should retain documentation as to how the purchase met these criteria

F&A Rates to be used

§ 200.414

The Uniform Guidance clarifies that an entity’s negotiated F&A rates must be accepted by all Federal awarding agencies:

• A Federal awarding agency may use a rate different from the negotiated rate for a class of Federal awards or a single Federal award only when required by Federal statute or regulation, or when approved by a Federal awarding agency head or delegate based on documented justification
• Notices of funding opportunities must include the policies relating to indirect cost rate reimbursement
• Pass-thru entities must honor subrecipients’ approved F&A rates. If subrecipient doesn’t have a federally negotiated rate, a 10% MTDC de minimus rate can be used.

Federal Awarding Agency or Pass-Through Entity Review

§ 200.325

General Procurement Standards

§ 200.318

Uniform Guidance outlines general procurement standards for purchases using federal funds. GSSC has adopted policies and procedures to ensure compliance with all standards outlined in the Uniform Guidance.

These standards include the following:

• Standards covering conflict of interest. Access The Ohio State University policies on conflict of interest:
  • Conflict of Interest
• GSSC cannot issue a Purchase Order (PO) contract to a vendor or individual consultant where an organizational conflict of interest exists
• PIs must avoid requesting the acquisition of unnecessary or duplicative items
• PIs should review federal excess and surplus property inventory before issuing a request to purchase equipment or property. PIs are encouraged to contact the GSSC for assistance in searching for federal excess and surplus property
• Purchase Orders may be issued only to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement
• The GSSC is required to maintain records sufficient to detail the history of each procurement and files the issued purchase order with all associated documents. PIs are required to submit all applicable supporting documentation with each request for procurement (e.g., vendor price quotations, vendor ancillary contact agreements, product specifications, the “Request for Sole Source” form, the “Competition Determination Requirements” form, scope of work, etc.).
• A “Time and Materials” type contract may be used 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
• The GSSC, in conjunction with the PI, are responsible for the settlement of all contractual and administrative issues arising out of procurements

Participant Support Costs

§ 200.1
§ 200.456

Participant support costs means direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects.

• Participant support costs are allowed on projects with an educational component, if included in the proposal budget or with subsequent sponsor approval.
• Sponsor approval is also required to rebudget funds from participant support costs into another category
• Participant support costs are excluded from the F&A base

Prior Written Approval

§ 200.407

Section 200.407 collects all of the references to prior approval. Agencies may choose to implement or waive some, or all, of these, as the Uniform Guidance sets out a broad framework within which federal agencies must operate. In general, agencies differ in their implementation of the Uniform Guidance: consult individual agency guidelines to find out about a particular agency. Most generally important are the need for sponsor approval (if not included in the approved proposal) to:

• Issue an unbudgeted subaward
• Use unrecovered indirect costs, including indirect costs on cost sharing or matching as part of cost sharing or matching only with the prior approval of the Federal awarding agency. (Section § 200.306)
• Use Program Income (Section § 200.307)
• Revise budget and program plans, including changes in key personnel or their level of effort (by more than 25%); disengagement of the PI (the new term for absence of PI, to acknowledge that a PI can be absent from campus but still engaged in the project) (§ 200.308)
• Transfer of funds budgeted for participant support costs to other categories of expense. (Section § 200.456)
• Incur unbudgeted participant support costs (Section § 200.456)
• Pay of supplemental compensation (Section § 200.430 (h)(ii))
• Purchase capital equipment (cost >$5,000) (Section § 200.439)

Procurement Methods to be Followed 

§ 200.320

On July 1, 2018, OSP Procurement began using the five procurement methods specified in the Uniform Guidance and listed below. In the Final Guidance, issued August 13, 2020, OMB consolidated Micro-purchases and Small purchases into Informal procurement methods and Sealed bids, Proposals and Noncompetitive procurements into Formal procurement methods.  Each of the five methods has its own proof of competition requirements, as described below. Effective July, 1, 2023 OSP Procurement has a federal audit agency-approved micro-purchase threshold increase from $25,000 to $75,000.

 The five procurement methods are: 

• Micro-Purchases: Purchasing of supplies, equipment or services where the aggregate total is less than $75,000. If the purchase is subject to Davis-Bacon Act or Service Contract Act, the aggregate total may not exceed $2,000.
  • Micro-purchases may be awarded without soliciting competitive quotations if the GSSC can defend the price as reasonable
  • One quote/proposal is needed
  • Micro-purchases must be distributed equitably among qualified suppliers, when practicable
• Small Purchases: Aggregate total is between $75,000 and $250,000 for procurements of supplies, equipment or services
  • If more than one supplier exists, two or more informal quotes/proposals must be obtained (to be used as the basis for the required determination of the reasonableness of cost). The same specifications must be provided to all solicited vendors to ensure quotes are comparable (see Competition: Section § 200.319)
  • If only one supplier exists, the Noncompetitive Procurement guidelines (item 5 below) must be followed
• Sealed Bids: Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to 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. The following procedures and requirements apply:
  • GSSC, in conjunction with the requestor, will determine if the procurement request lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price
  • Requestors must complete and submit the OSP “Competition Determination Requirements” form with their purchase request
  • Using the information provided on the OSP “Competition Determination Requirements” form, GSSC, in accordance with applicable requirements in Uniform Guidance Sections § 200.319 and § 200.320, initiates the competitive bidding process by preparing and issuing the appropriate formal request for competitive proposals (RFIs and/or RFPs or RFQs). GSSC also determines how and where to publicize the request for competitive proposals. (View current bid opportunities.)
  • GSSC conducts the public bid opening at the time and place prescribed in the invitation for bids
  • A firm fixed price PO contract award will be made to the lowest responsive and responsible bidder
• Competitive Proposals: The aggregate total is $250,000 (Simplified Acquisition Threshold) or more, and more than one potential supplier exists. Suppliers submit offers, and either a fixed price or cost-reimbursement type PO contract can be awarded. This method is generally used when conditions are not appropriate for the use of sealed bids. The GSSC will determine whether a competitive proposal or sealed bidding procurement method will be performed. If the Competitive Proposals procurement method is used, the following procedures and requirements apply:
  • Requestors must complete and submit the OSP “Competition Determination Requirements” form with their purchase request
  • Using the information provided on the OSP “Competition Determination Requirements” form the GSSC, in accordance with applicable requirements in Uniform Guidance Sections § 200.319 and § 200.320), initiates the competitive bidding process by preparing and issuing the appropriate formal requests for competitive proposals (RFIs and or RFPs or RFQs) and determines how and where to publicized the request for competitive proposals. (View current bid opportunities.)
  • Principal investigators must select the responsible bidder whose proposal is most advantageous (see Competition: Section § 200.319)
• Noncompetitive Procurement: Limited circumstances, as specified in the Uniform Guidance, must apply. This method is applicable to any dollar amount, but must be documented on procurements over $75,000. It may be used only when one or more of the following applies: item is available only from a single source; public exigency or emergency (as defined by FAR Subpart 6.302-2:7) exists; sponsor expressly authorizes noncompetitive proposals in response to written request; or when after solicitation from multiple sources it is determined that competition is inadequate.
  • PIs requesting a sole source (Noncompetitive Procurement) for procurements of $75,000 up to $250,000 must complete and submit a “Request for Sole Source” form with their purchase request
  • If the procurement is estimated to be $250,000 or more, PIs must submit both a “Request for Sole Source” form and the OSP “Competition Determination Requirements” form with their purchase request

Procurement of Recovered Materials  

§ 200.323

As required by Uniform Guidance 200.326, the Office of Research Purchase Order Terms and Conditions have been updated to include applicable provisions by incorporation of  “Appendix II to Part 200—Contract Provisions for non-Federal Entity Contracts Under Federal Awards” for all procurements funded by federal grants. Procurement of Recovered Materials § 200.323 is included in Appendix II to Part 200.

• PIs should search for and request procurement of items that contain the highest percentage of recovered materials practical, consistent with maintaining satisfactory levels of competition, when the purchase price exceeds $75,000 or the value of the quantity procured by the project in the preceding fiscal year exceeded $75,000. GSSC will ensure compliance with the standards and requirements identified in section § 200.323.
• Other requirements include procuring solid waste services in a manner that maximizes energy and resource recovery
• Establishing an affirmative procurement program for recovered materials. Search Ohio State's list of suppliers.

Prohibition on certain telecommunications and video surveillance services or equipment.

§ 200.216

This section was added on August 13, 2020, to implement Section 889(b) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, which prohibits federal award recipients from using loan or grant funds to enter into contracts (or to extend or renew contracts) with entities that use covered telecommunications equipment or services. Specifically, recipients and subrecipients of federal grants may not

1. Procure or obtain;
2. Extend or renew a contract to procure or obtain; or
3. Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).
   1. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).
   2. Telecommunications or video surveillance services provided by such entities or using such equipment.
   3. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

The university is developing procedures to ensure compliance with this requirement. Contact ExportControl@osu.edu with questions.

Project Closeout

§ 200.344

Project closeout guidance was revised in August 2020 to increase the number of days for recipients to submit closeout reports and liquidate all financial obligations from 90 days to 120 days. This change takes into consideration the challenges faced by pass-through entities with respect to awards that contain a large number of subawards. These recipients must reconcile subawards and submit final reports to Federal awarding agencies within the same 90 day period. Recognizing the need for pass-through entities to receive timely reports from subrecipients to report back to Federal awarding agencies, OMB will continue to require subrecipients to submit their reports to the pass-through entity within 90 days. The intent of this change is to support financial reconciliation, help ease the burden associated with submitting reports for closeout, and promote improved accuracy.  Specific directions include:

• The recipient must submit, no later than 120 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. A subrecipient must submit to the pass-through entity, no later than 90 calendar days (or an earlier date as agreed upon by the pass-through entity and subrecipient) after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. The Federal awarding agency or pass-through entity may approve extensions when requested and justified by the non-Federal entity, as applicable.
• Unless the Federal awarding agency or pass-through entity authorizes an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award no later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award.

Subaward Management

§ 200.331
§ 200.332

The Uniform Guidance included a number of changes pertaining to subawards with other entities. As a result, a pass-through entity:

• Must make and document a case-by-case determination as to whether the funding recipient should be a subrecipient or a contractor (formerly known as vendor). OSP staff can help with these determinations (Section § 200.331)
• Must use an approved federally recognized indirect cost rate negotiated between the subrecipient and the Federal government or, if no such rate exists, use either a rate negotiated between the pass-through entity and the subrecipient (in compliance with this part), or a de minimus indirect cost rate of 10% MTDC (Section § 200.332)
• Must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include reviewing financial and programmatic reports required by the pass-through entity (Section § 200.332)
• Must pay subrecipient’s invoice within 30 calendar days after receipt of the billing, unless the pass through entity reasonably believes the request to be improper (Section § 200.305).
• Subaward agreements incorporate these changes