HomeMy WebLinkAboutResolution 2025-13_Purchasing with Federal Grant FundsRESOLUTION 2025-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS,
ADOPTING PROCEDURES FOR PURCHASING WITH FEDERAL GRANT FUNDS;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF
WHEREAS, the City of La Porte, Texas, pursues and engages in projects that necessitate the adoption of
procurement policies and procedures applicable to procurements made with Federal Fonds;
and
WHEREAS, the City Council of the City of La Porte, Texas, finds that it is in the best interest of the
citizens of La Porte to adopt Procedures for Purchasing with Federal Grant Funds
applicable to all procurements made with Federal Funds, in addition to existing City
purchasing policies.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, TEXAS, THAT:
Section 1. The City of La Porte hereby adopts the Procedures for Purchasing with Federal Grant Funds
document attached hereto, applicable to all procurements made with Federal Funds.
Section 2. All resolutions or parts of resolutions of the City of LaPorte, Texas, in conflict with any
provision contained herein is hereby repealed to the extent of any conflict.
Section 3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause,
of this resolution shall, for any reason, be held invalid, such invalidity shall not affect the
remaining portions of this resolution; and it is hereby declared to be the intention of this City
Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of
the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared
invalid.
Section 4. The City Council officially finds, determines, recites, and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of the City Council was posted at a
place convenient to the public at the City Hall of the City for the time required by law preceding
this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code;
and that this meeting has been open to the public as required by law at all times during which
this resolution and the subject matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 5. This resolution shall be in effect from and after its passage and approval.
PASSED and APPROVED this, the 10 day of April 2025.
CITY OF LA
ATTEST:
APPROVED AS TO FORM:
Clark T. Askins, City Attorney
CITY OF LA PORTE
PROCEDURES FOR PURCHASING WITH
FEDERAL GRANT FUNDS
Updated March 2025
INTRODUCTION
The purpose of this procedure manual for federal grant funding is to ensure the City of La Porte is
following the required procedures when spending federal funds. As of January 2025,
Government grantees must follow the procurement regulations set forth in the Uniform Grant
Guidance 2 CFR 200.318-200.327, General Procurement Standards. If these regulations are not
followed the City could be requested to pay back the grant money they were awarded. Some
examples of federal funding are giants awarded through GLO, HUD, CDBG and FEMA. If
procuring goods and services with federal grant funds the Purchasing Department must be notified
to ensure compliance with 2 CFR 200.
200.318 PROCUREMENT STANDARDS
CFR 200 has established procurement methods for certain threshold, a local government
may be more stringent to follow their own policies. The procurement thresholds and
requirements will be the same as listed in the Purchasing Policy.
$0 to $2,999.99— Primary source of procurement is city -issued procurement card (p-
card). If selected vendor does not accept p-cards, a check requisition may be used for
expenditures up to $99.99. Expenditures $100.00 and above should be procured using a
purchase requisition if a vendor does not allow use of the p-card.
$3,000.00 to $24,999.99 — Requires a minimum of three (3) written quotes be obtained by
the department or through purchasing, utilizing standardized quote fors. End -users
should issue a purchase requisition and attach the quotes to the requisition. At least one
(1) quote should be from a minority vendor or historically underutilized vendor (HUB), if
available.
$25,000.00 to $49,999.99 — Requires Purchasing create an informal solicitation to send
to potential bidders. Once awarded, end -users shall issue a purchase requisition and
reference the informal solicitation number.
$50,000 and above — Requires all state statues listed in the TX LGC Sections 252 and 271
be followed, including prior approval by La Porte City Council. This is supported by
Ordinance No. 2004-2736-A. Legal statutes and ramifications as provided in Texas Local
Government Code (TX LGC) and Texas Penal Code. If funded by federal grants all
requirements of the Uniform Grant Guidance 2 CFR 200.318-200.327 must be
followed.
The City of La Porte must maintain oversight to ensure that contractors perform in accordance
with the terms, conditions, and specifications of their contracts or purchase orders. This will be a
joint effort between the Project Manager and the Purchasing staff.
200.318 CONFLICT OF INTEREST 200.318
Any employee, officer or agent that is involved with the selection of a contract or the
administration of a contract must disclose any real or apparent conflict of interest as stated
below
Such a conflict of interest will arise when the employee, officer or agent or any member of his or
her immediate family, his or her partner, or an organization which employs or is about to employ
any of the parties indicated here in, has a financial interest in or a tangible personal benefit from a
fir considered for a contract.
No employee, officer or agent must neither solicit nor accept gratuities, favors, or anything of
monetary value from contractors or parties to subcontracts except for promotional items
of
negligible value, in the form of notepads, pens, calendars, etc. which may be accepted and used in
normal City business operations.
As stated in the Employee Policies Handbook, 3.04 Violations of Policies/Acts of Misconduct:
Employees may be disciplined or terminated for misconduct depending on the severity, including
but not limited to violation of any City or department rule, regulation, policy or procedure.
200.318 (d-1) PROCUREMENT STANDARDS
Before procuring goods or services utilizing federal grant funds the below must be
considered:
(d) The City must avoid acquisition of unnecessary or duplicative items. When appropriate,
an analysis should be made between leasing and purchasing property or equipment to
determine the most economical approach.
(e) Procurement arrangements using strategic sourcing. When appropriate for the
procurement of use of common or shared goods and services, recipients and
subrecipients are encouraged to enter into State and local intergovernmental
agreements or inter -entity agreements for procurement transactions.
(t) Grantees are encouraged to use Federal excess and surplus property in lieu of
new equipment and property.
200318) (g-k) PROCUREMENT STANDARDS
(g) When appropriate it is encouraged to use value engineering clauses in construction
contracts of sufficient size. Value engineering is a systematic and creative analysis of
each contract item or task to ensure that its essential function is provided at the overall
cost.
(h) The City must award contracts only to responsible contractors possessing the ability
to perform successfully. Consideration will be given to contractor integrity,
compliance with public policy, past performance and financial and technical
resources.
(i) Records must be maintained to document the rational for the following but not limited
to:
Procurement method
Selection of contract type,
Contractor selection or rejection, and
Basis for contract price
Records will be maintained by the Purchasing Department
(j) Time and materials contracts can only he used after a determination that no other
contract is suitable and if the contract includes a ceiling price that the contractor
exceeds at his own risk. Time -and materials type contract means a contract whose cost
to a recipient of subrecipient is the sum of:
• The actual cost of materials; and
• Direct labor hours charged at fixed hourly rates that reflect wages, general and
administrative expenses and profit.
(k) The City alone must be responsible, in accordance with good administrative practice
and sound business judgement, for the settlement of all contractual and administrative
issues arising out of procurements. These issues include, but are not limited to, source
evaluation, protests, disputes, and claims. These standards do not relive the city of any
contractual responsibilities under its contracts. The Federal awarding agency will not
substitute its judgement for that of the city unless the matter is primarily a Federal
concern. Violations of law will be referred to the local, state or Federal authority
having properjurisdiction.
200.319 (a-g) COMPETITION
(a) All procurement transactions under Federal award must be conducted in a
manner that provides full and open competition and is consistent with the
standards of this section and 200.320.
(b) To ensure objective contractor performance and eliminate unfair competitive
advantage, contractors that develop or draft specifications, requirements, statements of
work, or invitations for bids must be excluded from competing on those procurements.
(c) Examples of situations that may restrict competition include, but are not limited to:
(1) Placing unreasonable qualifying requirements on firms
(2) Requiring unnecessary experience and excessive bonding requirements
(3) Noncompetitive pricing practices between firms or affiliated companies
(4) Noncompetitive contracts to consultants that are on retainer
(5) Organization conflicts of interest
(6) Specifying on a "brand name" instead of allowing for "an equal' product
(9) Arbitrary actions
(d) The recipient or sub recipient must have written procedures for procurement transactions.
These procedures must ensure all solicitations:
(1) Are made in accordance with 200.319(b);
(2) Clear and accurate description of the technical requirements for material, product or
services.
(3) Identify any additional requirements which the offerors must fulfill and all other
factors that will be used in evaluating bids or proposals.
(e) The recipient or subrecipient must ensure all prequalified lists of persons, firms or products
used in procurement transactions are current and include enough qualified sources to
ensure maximum open competition. When establishing or amending prequalified lists, the
recipient or subrecipient must consider objective factors that evaluate the price and cost to
maximum competition. The recipient or subrecipient must not preclude potential bidders
from qualifying during the solicitation period.
(f) To the extent consistent with established practices and legal requirements applicable to the
recipient or sub recipient, this subpart does not prohibit recipients or subrecipients from
developing written procedures for procurement transactions that incorporate a scoring
mechanism that rewards bidders that commit to specific numbers and types of U.S. jobs,
minimum compensations, benefits, on-the-job training for employees making work
products or providing services on a contract, and other worker protections. This subpart
also does not prohibit recipients and subrecipients from making inquiries of bidders about
these subjects and assessing the responses. Any scoring mechanism must be consistent with
the U.S. Constitution, applicable Federal statutes and regulations, and the terns and
conditions of the Federal award.
(g) Noncompetitive procurements can only be awarded in accordance with 200.320(c).
200320 (a-t) PROCUREMENT METHODS
(a) Micro -Purchases, $2,000 or less, do not require competition or a cost/price analysis, but must
be distributed equitability among qualified suppliers (to the extent practicable).
Construction over $2,000 is subject to the Davis -Bacon Act. Micro -purchases may be awarded
without soliciting competitive quotation if the entity considers the price to be reasonable.
(b) Simplified acquisition, The aggregate dollar amount of the procurement transaction is higher
than the micro -purchase threshold but does not exceed the simplified acquisition threshold. If
simplified acquisition procedures are used, price or rate quotations must be obtained from an
adequate number of qualified sources. Unless specified by the Federal agency, the recipient or
subrecipient may exercise judgement in determining what number is adequate.
(c) Small Purchases, $3,000-$49,999, price and rate quotes must he obtained from an adequate
number of qualified sources, no cost/price analysis is required
(d) Sealed Bid, $50,000 and above using firm price contract. 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. In order for
sealed bidding to be feasible, the following requirements should apply
o A complete, adequate and realistic specification or purchase description is
available
o Two or more responsible bidders participate
o The invitation for bids will be publicly advertised and bids must be solicited from
an adequate number of known suppliers
o The invitation for bids, which will include any specifications and pertinent
attachments, must define the items or services in order for the bidder to properly
respond
o All bids will be publicly opened at the time and place prescribed in the invitation
to bid.
o Any and all bids may be rejected if there is a sound documented reason.
(e) Competitive Proposal, $50,000 and above, used when sealed bids are not appropriate. Is
normally conducted when more than one source submitting an offer, and either a fixed price or
cost reimbursement type contract is awarded. The following requirements should apply:
o Request for proposals must be publicized and identify all evaluation factor and
there relative importance
o Proposals must be solicited from an adequate number of qualified sources
o Must have a written method for conducting technical evaluations of the proposals
received and for selecting recipients
o Contracts must be awarded to the responsible firm whose proposal is most
advantageous to the program, with price and other factors considered
Competitive proposals may be used for qualification based procurement such as engineering and
architectural services.
(f) Noncompetitive Proposal, $50,000 and above, is used when the items are only available from
a single source. One or more of the following must apply:
o Available only through a single source
o Public exigency or emergency will not permit delay required for the competition
o Awarding agency has expressly authorized a noncompetitive process, or after
solicitation of a number of sources
o After solicitation of a number of sources, competition is deemed inadequate
200.321 Contracting with small businesses, minority businesses, women's business
enterprises, veteran -owned businesses, and labor surplus area arms
Grantees must take all necessary affirmative steps to ensure minority businesses, women's
business enterprises and labor surplus area firms are used when possible.
Affirmative steps must include:
o Place qualified small, minority, and women —owned business on solicitation lists
o Assure that such business are solicited when they are potential sources
o Divide total requirement, when economically feasible, into smaller tasks or
quantities to permit maximum participation by such businesses
o Establish delivery schedules, where requirements permits, which encourage such
business to respond
o Use services and assistance from such organizations as SBA, Minority Business
Development Agency, Department of Commerce
o Requiring a contractor under a Federal award to apply this section to subcontracts.
200.322 DOMESTIC PREFERENCES FOR PROCUREMENTS
(a) The recipient or subrecipient should, to the greatest extent practicable and consistent with
law, provide a preference for the purchase, acquisition, or use of goods, products, or materials
produced in the United States (including but not limited to iron, aluminum, steel, cement, and
other manufactured products).
(b) Federal agencies providing Federal financial assistance for infrastructure projects must
implement the Buy America preference set forth in 2 CFR 184.
200.323 PROCUREMENT OF RECOVERED MATERIALS
(a) A recipient or subrecipient that is a State agency or agency of a political subdivision of a
State and it contractors must comply with section 6002 of the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act of 1976 as amended, 42 U.S>C. 6962.
The requirements of Section 6002 include procuring only item designated in the guidelines of the
Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage
of recovered materials practicable, consistent with maintaining a satisfactory level of
competition, where the purchase price of the item exceeds $10,000 or the value of the quantity
acquired during the preceding price of the fiscal year exceeded $10,000; procuring solid waste
management services in a manner that maximizes energy and resource recovery; and establishing
an affirmative procurement program for procurement of recovered materials identified in the
EPA guidelines.
(b) The recipient or subrecipient should, to the greatest extent practicable and consistent with
law, purchase, acquire, or use products and services that can be reused, refurbished, or recycled;
contain recycled content, are biobased, or are energy and water efficient; and are sustainable.
This may include purchasing compostable items and other products and service that reduce the
use of single -use plastic products. See Executive Order 14057, section 101, Policy.
200.324 CONTRACT COST AND PRICE
(a) Every procurement more than $150,000 must have a cost or price analysis performed (must be
completed before the bids are opened) this includes any contract modifications or change orders.
The engineer's cost estimate will meet this requirement for construction projects. This must be a
detailed cost breakdown for the overall estimate providing the elements, such as labor and
materials, of the total cost.
(b) Cost analysis are used when there is no competition or when price competition is not the
only evaluation factor, as in a RFP or RFQ. A cost analysis must be completed before awarding
the contract. To prepare a cost analysis obtain a detailed breakdown of the contractor's proposed
cost and verify the accuracy of the cost and pricing information submitted and evaluate. An
analysis contains the following elements:
1. Is the cost reasonable, which by means is it allowable under the grant; is it allocable
(are cost logically related to, or required in the performance of the contract); and is the
cost reasonable.
2. Compare costs proposed by the offeror with actual costs previously incurred by the
same contractor for the same or similar work; compare costs of the same or similar work
performed by other contractors.
(c) The recipient or sub recipient must not use the "cost plus a percentage of cost" and
"percentage of construction cost" methods of contracting.
CONTRACT REVIEW 200.325
Recipient or subrecipient must make available, upon request, technical specifications on
proposed procurements to ensure the item or service is the one being proposed for acquisition.
Typically, the review takes place prior to procurement but can occur post solicitation.
Recipient or subrecipient must make available for the awarding agency procurement documents
when:
Procurement processes or standards fail to comply to 2 CFR 200
Procurement are expected to exceed $150,000 and is to be awarded without
competition or is awarded under sealed bid to entities other than the low bidder,
specifies a "brand name", or is a contract modification that changes the scope or
increases the scope by more than $150,000
Grantees may also request that its procurement process be reviewed by the
awarding agency to determine whether its process meets these standards
BONDING REQUIREMENTS 200.326
Bonding is required for construction/facility improvements exceeding $50,000. This is to ensure
that the Federal interest in the procurement is adequately protected.
o A bid guarantee equal to 5% of the bid price to ensure that post bid selection that
the successful bidder will enter into a binding agreement for the work
o A performance bond to secure fulfillment of the contractor's obligations for 100%
of the contract price
o A 100% payment bond to ensure payment as required by law of all persons
supplying labor and materials in performance of work specified in the contract.
CONTRACT PROVISIONS 200.327
The recipient's or subrecipient's contracts must contain the applicable provisions in Appendix 11.
See Exhibit attached.
EXHIBIT A
Appendix II to Part 200
Contract Provisions for Non -Federal Entity Contracts Under
Federal Awards
The following provisions are adopted by reference and form part of the parties Contract
for (hereinafter the "AGREEMENT"). For purposes of the
provisions below, the City of La Porte, shall be referenced as "OWNER" and
shall be referenced as "CONTRACTOR".
In addition to other provisions required by the Federal agency or non -Federal entity, all
contracts made by the non -Federal entity under the Federal award must contain
provisions covering the following, as applicable.
(A) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted
amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative,
contractual, or legal remedies in instances where contractors violate or breach contract terms,
and provide for such sanctions and penalties as appropriate.
(B) All contracts in excess of $10,000 must address termination for cause and for convenience
by the non-Fedeml entity including the manner by which it will be effected and the basis for
settlement.
(C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60 all
contracts that meet the definition of"federally assisted construction contract' in 41 CFR Part
60 1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b). in
accordance with Executive Order 11246 "Equal Employment Opportunity" (30 FIR 12319,
12935 3 CFR Part 1964-1965 Comp., p. 339), as amended by Executive Order 11375.
"Amending Executive Order 11246 Relating to Equal Employment Opportunity," and
implementing regulations at 41 CFR part 60, "Office of Federal Contract Compliance
Programs, Equal Employment Opportunity, Department of Labor."
(D) Davis -Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program
legislation, all prime construction contracts in excess of $2,000 awarded by non -Federal
entities must include a provision for compliance with the Davis -Bacon Act (40 U.S.C. 3141-
3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5,
"Labor Standards Provisions Applicable to Contracts Covering Federally Financed and
Assisted Construction'). In accordance with the statute, contractors must be required to pay
wages to laborers and mechanics at a rate not less than the prevailing wages specified in a
wage determination made by the Secretary of Labor. In addition, contractors must be required
to pay wages not less than once a week. The non -Federal entity must place a copy of the
current prevailing wage determination issued by the Department of Labor in each solicitation.
The decision to award a contract or subcontract must be conditioned upon the acceptance of the
wage determination. The non -Federal entity must report all suspected or reported violations to
the Federal awarding agency. The contracts must also include a provision for compliance with
the Copeland "Anti -Kickback" Act (40 U.S.C. 3145), as supplemented by Department of
Labor regulations (29 CFR Part 3, "Contractors and Subcontractors on Public Building or
Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The
Act provides that each contractor or subrecipient must be prohibited from inducing, by any
means, any person employed in the construction, completion, or repair of public work, to give
up any part of the compensation to which he or she is otherwise entitled. The non -Federal
entity must report all suspected or reported violations to the Federal awarding agency.
(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable,
all contracts awarded by the non -Federal entity in excess of $100,000 that involve the
employment of mechanics or laborers must include a provision for compliance with 40 U.S.C.
3702 and 3704, w supplemented by Department of Labor regulations (29 CFR Part 5). Under
40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every
mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the
standard work week is permissible provided that the worker is compensated at a rate of not less
than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the
work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and
provide that no laborer or mechanic must be required to work in surroundings or under
working conditions which are unsanitary, hazardous or dangerous. These requirements do not
apply to the purchases of supplies or materials or articles ordinarily available on the open
market, or contracts for transportation or transmission of intelligence.
(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the
definition of"funding agreement" under 37 CFR & 401.2 (a) and the recipient or subrecipient
wishes to enter into a contract with a small business firm or nonprofit organization regarding
the substitution of parties, assignment or performance of experimental, developmental, or
research work under that "funding agreement," the recipient or subrecipient must comply with
the requirements of 37 CFR Part 401, `Rights to Inventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants, Contracts and Cooperative
Agreements," and any implementing regulations issued by the awarding agency.
(G) Clean Air Act (42 U.S.C. 7401-76710.) and the Federal Water Pollution Control Act 33
US.C. 125 L 1387), as amended --Contracts and subgrants of amounts in excess of $150,000
must contain a provision that requires the non -Federal award to agree to comply with all
applicable standards, orders or regulations issued pursuant to the Clean Air Act 42( U.S.C.
7401-7671 u) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387).
Violations must be reported to the Federal awarding agency and the Regional Office of the
Environmental Protection Agency (EPA).
(H) Debarment and Suspension (Executive Orders 12549 and 12689)--A contract award (see 2
CFR 180.220) must not be made to parties listed on the govemmentwide exclusions in the
System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180
that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR
part 1989 Comp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names
of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared
ineligible under statutory or regulatory authority other than Executive Order 12549.
(1) Byrd Anti -Lobbying Amendment 31 U.S�V-Contractors that apply or bid for an
award exceeding $100,000 must file the required certification. Each tier certifies to the tier
above that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency, a
member of Congress, officer or employee of Congress, or an employee of a member of
Congress in connection with obtaining any Federal contract, grant or any other award covered
by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non -Federal funds that takes
place in connection with obtaining any Federal award. Such disclosures are forwarded from
tier to tier up to the non -Federal award.
(J) Procurement of Recovered Material 200.323- A recipient or subrecipient that is a State
agency or agency of a political subdivision of a State and its contractors must comply with
section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 as amended, 42 U.S.C. 6962. The requirements of Section 6002 include
procuring only items designated in the guidelines of the Environmental Protection Agency
(EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials
practicable, consistent with maintaining a satisfactory level of competition, where the purchase
price of the item exceeds $10,000 or the value of the quantity acquired during the preceding
fiscal year exceeded $10,000; procuring solid waste management services in a manner that
maximizes energy and resource recovery; and establishing an affirmative procurement program
for procurement of recovered materials identified in the EPA guidelines.
(b) The recipient or subrecipient should, to the greatest extent practicable and consistent with
law, purchase, acquire, or use products and services that can be reused, refurbished, or
recycled; contain recycled content, are biobased, or are energy and water efficient; and are
sustainable. This may include purchasing compostable items and other products and services
that reduce the use of single -use plastic products. See Executive Order 14057, section 101,
Policy.
(K) Prohibition on certain telecommunications and video surveillance equipment or services.
200.216-
(a) Recipients and subrecipients are prohibited from obligating or expending loan or grant
funds to:
1) Procure or obtain covered telecommunications equipment or services;
(2) Extend or renew a contract to procure or obtain covered telecommunications equipment or
services; or
(3) Enter into a contract (or extend or renew a contract) to procure or obtain covered
Telecommunications equipment or services
(b) As described in section 889 of Public Law 115-232. "covered telecommunications
(1) Telecommunications equipment produced by Huawei Technologies Company or ZTE
Corporation (or any subsidiary or affiliate of such entities);
(2) For the purpose of public safety, security of government facilities, physical security
surveillance of critical infmstmcture, 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);
(3) Telecommunications or video surveillance services provided by such entities or using
such equipment;
(4) 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;
(c) For the purposes of this section, "covered telecommunications equipment or services" also
include systems that use covered telecommunications equipment or services as a substantial or
essential component of any system, or as critical technology as part of any system.
(d) In implementing the prohibition under section 889 of Public Law 1 15-232, heads of
executive agencies administering loan, grant, or subsidy programs must prioritize available
funding and technical support to assist affected businesses, institutions, and organizations as is
reasonably necessary for those affected entities to transition from covered telecommunications
equipment or services, to procure replacement equipment or services, and to ensure that
communications service to users and customers is sustained.
(e) When the recipient or subrecipient accepts a loan or gran[, it is certifying that it will comply
with the prohibition on covered telecommunications equipment and services in this section.
The recipient or subrecipient is not required to certify that funds will not be expended on
covered telecommunications equipment or services beyond the certification provided upon
accepting the loan or grant and those provided upon submitting payment requests and financial
reports.
(f) For additional information, see section 889 of Public Law 115-232 and 2& 00.471.
(L) Domestic Preferences for Procurement 200.322-
(a) The recipient or subrceipient should, to the greatest extent practicable and consistent with
law, provide a preference for the purchase, acquisition, or use of goods, products, or materials
produced in the United States (including but not limited to iron, aluminum, steel, cement, and
other manufactured products). The requirements of this section must be included in all
subawards, contracts, and purchase orders under Federal awards.
(b) For purposes of this section:
(1) "Produced in the United States" means, for iron and steel products, that all manufacturing
processes, from the initial melting stage through the application of coatings, occurred in the
United States.
(2) "Manufactured products" means items and construction materials composed in whole or
in part of non-ferrous metals such as aluminum; plastics and polymer -based products such as
polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and
lumber.
(c) Federal agencies providing Federal financial assistance for infrastructure projects must
implement the Buy America preferences set forth in 2 CFR part 184.
CorbN Anoinder , City Manager
Print Name and Title of Contractor's Authorized Official
Signaturf f Contractor's Autho ked Official Date