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Page 26 of 52 <br />qualified sources to ensure maximum open and free competition. Also, the non -Federal <br />entity must not preclude potential bidders from qualifying during the solicitation period. <br />[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014] <br />200.320 Methods of procurement to be followed. <br />The non -Federal entity must use one of the following methods of procurement. <br />(a) Procurement by micro -purchases. Procurement by micro -purchase is the acquisition of <br />supplies or services, the aggregate dollar amount of which does not exceed the micro - <br />purchase threshold (200.67 Micro -purchase). To the extent practicable, the non -Federal <br />entity must distribute micro -purchases equitably among qualified suppliers. Micro - <br />purchases may be awarded without soliciting competitive quotations if the non -Federal <br />entity considers the price to be reasonable. <br />(b) Procurement by small purchase procedures. Small purchase procedures are those <br />relatively simple and informal procurement methods for securing services, supplies, or <br />other property that do not cost more than the Simplified Acquisition Threshold. If small <br />purchase procedures are used, price or rate quotations must be obtained from an adequate <br />number of qualified sources. <br />(c) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm <br />fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose <br />bid, conforming with all the material terms and conditions of the invitation for bids, is the <br />lowest in price. The sealed bid method is the preferred method for procuring <br />construction, if the conditions in paragraph (e)(1) of this section apply. <br />(1) In order for sealed bidding to be feasible, the following conditions should be present: <br />(i) A complete, adequate, and realistic specification or purchase description is <br />available; <br />(ii) Two or more responsible bidders are willing and able to compete effectively for <br />the business; and <br />(iii) The procurement lends itself to a firm fixed price contract and the selection of the <br />successful bidder can be made principally on the basis of price. <br />(2) If sealed bids are used, the following requirements apply: <br />(i) Bids must be solicited from an adequate number of known suppliers, providing <br />them sufficient response time prior to the date set for opening the bids, for state, <br />local, and tribal governments, the invitation for bids must be publically <br />advertised; <br />Agreement No. R20AP00113 <br />Agreement Template <br />(03/2019) <br />