Dear Program Operator,
The U.S. Department of Agriculture (USDA) recently published Policy Memo CACFP 03-2021: Updates to the Federal Micropurchase Threshold in Title 2, Code of Federal Regulations, Section 200.320(a)(1). The policy memo notifies the Child Nutrition Program (CNP) operators of the changes made by the Office of Management and Budget (OMB) to the informal procurement method, micropurchase, and the threshold guidance in federal regulations.
The changes include, but are not limited to, the following items:
- Micropurchase Distribution: The guidance set forth in Title 2, Code of Federal Regulations (CFR), Section 200.320(a) previously stated that agencies must distribute micropurchases equitably among all qualified suppliers. The language is now updated to state that program operators should distribute the micropurchases equitably and to the maximum extent practicable.
- Competition: The guidance set forth in Title 2, CFR, Section 200.320(a) previously stated that micropurchases may be awarded without soliciting competitive quotations if the overseeing agency or program operator considers the price to be reasonable. The language is now updated to state that consideration of a reasonable price is based on research, experience, purchase history or other information and supporting documentation filed and maintained accordingly.
- Micropurchase Thresholds: The guidance set forth in Title 2, CFR, Part 200 was updated to provide flexibility to state agencies and program operators. Per Title 2, CFR, Section 200.320(a)(1)(iii), the state agency and program operator must determine and document an appropriate micropurchase threshold based on internal controls, an evaluation of risk, and the corresponding procurement procedures. The guidance set forth also provides additional clarification stating the micropurchase threshold that is used must be authorized or not prohibited under state, local, or tribal laws or regulations. Please note that it is acceptable for an agency to implement a more restrictive threshold; however, agencies are not permitted to implement a more permissive threshold.
- Increase of Threshold and Self-Certification: Per Title 2, CFR, Section 200.320(a)(iv), the state agency and program operator may self-certify a threshold up to $50,000 dollars on an annual basis and must appropriately maintain documentation of the self-certification, which includes but is not limited to a qualification as a low-risk auditee, in accordance with the criteria set forth in Title 2, CFR, Section 200.520; an annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or for public institutions, a higher threshold consistent with state law.
The California Department of Social Services (CDSS) and the California Department of Education (CDE) are working together to review and interpret the updated guidance.
The CDSS will issue additional guidance in the coming weeks.
Contact Information
If you have any questions regarding this subject, please contact the Community Procurement Unit by email at ProcurementCACFP@dss.ca.gov.
Thank you.
Family Engagement and Empowerment Division
California Department of Social Services
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