How Is Procurement Defined and Implemented?
Procurement – an entity’s purchasing procedures – is a critical component of federal cost principle requirements. All procurement procedures must be fair, open, and well documented; they may require NOFAs, RFQs, proposals or formal sealed bids; and they must assure market price or better. All purchases must follow specific written procedures and require the use of an appropriate federal procurement method. In addition, all program expenditures should be approved by an appropriate responsible party.
Following proper procurement protocols is important not only to promote cost reasonableness, but also to ensure that goods and services are purchased in a way that is fair and transparent. We encourage you to learn about and follow federal requirements, as well as state and local requirements. Remember, the strictest rule that applies to your situation is the one you must follow.