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Page 20 of 49 <br />3. PROCUREMENT STANDARDS (2 CFR 200.317 through 200.327) <br />§200.317 Procurements by States. <br />When procuring property and services under a Federal award, a State must follow the same <br />policies and procedures it uses for procurements from its non -Federal funds. The State will <br />comply with §§200.321, 200.322, and 200.323 and ensure that every purchase order or other <br />contract includes any clauses required by §200.327. All other non -Federal entities, including <br />subrecipients of a State, must follow the procurement standards in §§200.318 through 200.327. <br />§200.318 General procurement standards. <br />(a) The non -Federal entity must use its own documented procurement procedures which <br />reflect applicable State, local, and tribal laws and regulations, provided that the <br />procurements conform to applicable Federal law and the standards identified in this part. <br />(b) Non -Federal entities must maintain oversight to ensure that contractors perform in <br />accordance with the terms, conditions, and specifications of their contracts or purchase <br />orders. <br />(c) <br />(1) The non -Federal entity must maintain written standards of conduct covering conflicts <br />of interest and governing the actions of its employees engaged in the selection, award <br />and administration of contracts. No employee, officer, or agent may participate in the <br />selection, award, or administration of a contract supported by a Federal award if he or <br />she has a real or apparent conflict of interest. Such a conflict of interest would arise <br />when the employee, officer, or agent, any member of his or her immediate family, his <br />or her partner, or an organization which employs or is about to employ any of the <br />parties indicated herein, has a financial or other interest in or a tangible personal <br />benefit from a firm considered for a contract. The officers, employees, and agents of <br />the non -Federal entity may neither solicit nor accept gratuities, favors, or anything of <br />monetary value from contractors or parties to subcontracts. However, non -Federal <br />entities may set standards for situations in which the financial interest is not <br />substantial or the gift is an unsolicited item of nominal value. The standards of <br />conduct must provide for disciplinary actions to be applied for violations of such <br />standards by officers, employees, or agents of the non -Federal entity. <br />(2) If the non -Federal entity has a parent, affiliate, or subsidiary organization that is not a <br />state, local government, or Indian tribe, the non -Federal entity must also maintain <br />written standards of conduct covering organizational conflicts of interest. <br />Organizational conflicts of interest means that because of relationships with a parent <br />company, affiliate, or subsidiary organization, the non -Federal entity is unable or <br />appears to be unable to be impartial in conducting a procurement action involving a <br />related organization. <br />Agreement No. R22AP00352 Agreement Template <br />Recipient Name: City of Santa Ana (0112021) <br />