Chapter 4: Planning Contract Administration

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Section 1: Procurements

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Standards

The MPO must maintain approved written procurement procedures that meet or exceed the requirements of 49 CFR Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements with State and Local Governments, as it may be revised or superseded. These procedures will be used for all acquisitions authorized in any UPWP.

According to OMB Circular A-87 the principles for determining allowable costs are:

  • OMB Circular A-87, 5. Policy: This circular establishes principles and standards to provide a uniform approach for determining costs and to promote effective program delivery, efficiency, and better relationships between governmental units and the federal Government.
  • OMB Circular A-87, Attachment B, Section15(a) states:
    • (1) Capital expenditure means the cost of the asset including the cost to put it in place. Capital expenditure for equipment means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protection in transit insurance, freight, and installation may be included in, or excluded from, capital expenditure cost in accordance with the governmental unit's regular accounting practices.
    • (2) Equipment means an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals the lesser of (a) the capitalization level established by the governmental unit for financial statement purposes, or (b) $5000.

According to OMB Circular A-133, internal control processes should be in place to ensure that transactions are properly recorded to:

  1. permit the preparation of reliable financial statements and federal reports,
  2. maintain accountability over assets, and
  3. demonstrate compliance with laws, regulations, and other compliance requirements.

The MPO also agrees to comply with applicable Buy America requirements set forth in 23 USC §313 and regulations found in 23 CFR §635.410 and FTA’s Buy America regulations in 49 CFR Part 661 through its planning contract with the department. The MPO also agrees to comply with the cargo preference requirements set forth in 46 USC §55305 and Maritime Administration regulations set forth in 46 CFR Part 381 through its planning contract with the department.

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Certification

An example Certification of Compliance for use by the MPO is provided in Appendix E of the UPWP example format. After the procurement procedures are approved, the MPO must submit the signed Certification of Compliance with the UPWP certifying the procurement procedures.

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Example Procurement Standards

An example of contract procurement standards has been developed to help address requirements of 49 CFR Part 18.

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