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Page 25 of 49 <br />controls, an evaluation of risk and its documented procurement procedures which <br />must not exceed the threshold established in the FAR. When applicable, a lower <br />simplified acquisition threshold used by the non -Federal entity must be <br />authorized or not prohibited under State, local, or tribal laws or regulations. <br />(b) Formal procurement methods. When the value of the procurement for property or services <br />under a Federal financial assistance award exceeds the SAT, or a lower threshold <br />established by a non -Federal entity, formal procurement methods are required. Formal <br />procurement methods require following documented procedures. Formal procurement <br />methods also require public advertising unless a non-competitive procurement can be <br />used in accordance with §200.319 or paragraph (c) of this section. The following formal <br />methods of procurement are used for procurement of property or services above the <br />simplified acquisition threshold or a value below the simplified acquisition threshold the <br />non -Federal entity determines to be appropriate: <br />(1) Sealed bids. A procurement method in which bids are publicly solicited and a firm <br />fixed -price contract (lump sum or unit price) is awarded to the responsible bidder <br />whose bid, conforming with all the material terms and conditions of the invitation for <br />bids, is the lowest in price. The sealed bids method is the preferred method for <br />procuring construction, if the conditions. <br />(i) In order for sealed bidding to be feasible, the following conditions should be <br />present: <br />(A) A complete, adequate, and realistic specification or purchase description is <br />available; <br />(B) Two or more responsible bidders are willing and able to compete effectively for <br />the business; and <br />(C) The procurement lends itself to a firm fixed price contract and the selection of <br />the successful bidder can be made principally on the basis of price. <br />(ii) If sealed bids are used, the following requirements apply: <br />(A) Bids must be solicited from an adequate number of qualified sources, <br />providing them sufficient response time prior to the date set for opening the <br />bids, for local, and tribal governments, the invitation for bids must be publicly <br />advertised; <br />(B) The invitation for bids, which will include any specifications and pertinent <br />attachments, must define the items or services in order for the bidder to <br />properly respond; <br />(C) All bids will be opened at the time and place prescribed in the invitation for <br />bids, and for local and tribal governments, the bids must be opened publicly; <br />(D) A firm fixed price contract award will be made in writing to the lowest <br />responsive and responsible bidder. Where specified in bidding documents, <br />Agreement No. R22AP00352 Agreement Template <br />Recipient Name: City of Santa Ana (0112021) <br />