40 CFR 35.936-18 - Negotiation of subagreements.
(a) Formal advertising, with adequate purchase descriptions, sealed bids, and public openings shall be the required method of procurement unless negotiation under paragraph (b) of this section is necessary to accomplish sound procurement.
(b) All negotiated procurement shall be conducted in a manner to provide to the maximum practicable extent open and free competition appropriate to the type of project work to be performed. The grantee is authorized to negotiate subagreements in accordance with the applicable procedures of this subchapter (see §§ 35.937 et seq. and 35.500 et seq.) if any of the following conditions exist:
(1) Public exigency will not permit the delay incident to formally advertised procurement (e.g., an emergency procurement).
(2) The aggregate amount involved does not exceed $10,000 (see § 35.936-19 for small purchases).
(3) The material or service to be procured is available from only one person or entity. If the procurement is expected to aggregate more than $10,000, the grantee must document its file with a justification of the need for noncompetitive procurement, and provide such documentation to the project officer on request.
(4) The procurement is for personal or professional services (including architectural or engineering services) or for any service that a university or other educational institution may render.
(5) No responsive, responsible bids at acceptable price levels have been received after formal advertising, and, with respect to procurement under § 35.938-4, the Regional Administrator's prior written approval has been obtained.
(7) The procurement is for technical items or equipment requiring standardization and interchangeability of parts with existing equipment.
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