Section IX: Federal Procurement


9.1000: Procedures

All goods and service needs required under Federal Contracts and Grants must be procured in compliance with all Federal and State of Utah Procurement regulations.

Deans, Department Heads, Principal Investigators and all other University personnel can receive assistance and clarification on their Federal Government contracts through Sponsored Programs (formerly Contracts and Grants), and Purchasing Services.

9.1010: Advanced Procurement Planning

Procurement planning is to be initiated by the Principal Investigator at the time the need is recognized. When the proposal is submitted to the prospective funding agency, the Principal Investigator can then work with Purchasing Services in starting the Procurement process.

9.1020: Specific Terms and Conditions

Federal Government funds have specific terms and conditions normally not required by other contracts. Contact Purchasing Services for these terms and conditions.

9.1030: Small and Disadvantaged Firms:

Principal Investigators must be aware of the procurement goals outlined and specified in all Federal contracts dealing with small and disadvantaged companies.

Principal Investigators must contact Purchasing Services up front to determine how the University can best meet the requirements of a contract.

All University personnel are encouraged to purchase from small business, minority owned, and firms employing challenged employees whenever possible and feasible. All University employees are encouraged to help Purchasing Services expand the list of these vendors.

9.1040: Approval required:

Contracting Officer of the Federal Government and the University's Sponsored Programs Office must approve the following items:

  • All consulting arrangements
  • All capital equipment exceeding $5000.00, and all materials purchased from a particular vendor with a cumulative total amount in excess of $25,000 or 5% of the total prime contract.
  • Any agreement which would be interpreted to mean a subcontract whereby a part of the work is identified within the prime contract is delegated to another contractor for performance.

9.1050: Restrictions

Federal contract funds normally do not allow for the purchase of the following, unless specifically outlined in the contract:

  • Advertising
  • Buildings, remodeling, or repairs
  • Rent
  • Entertainment
  • Capital equipment
    • Permanent
    • General Purpose
    • Research
    • In house consultants
  • Commercial printing
  • Outside consultants, honorariums, scholarships, etc.
  • Foreign travel

9.1060: Sole Source/Emergency purchases

Please see University rules for Sole Source and Emergency procurement of goods and services (section 3.300) Emergency purchases are for items to protect against the loss of life or property.

9.1070: Availability of Existing Capital Equipment

  • When a capital item is needed in excess of $5000.00, it should first be determined through the inventory department if the equipment is available at Utah State University and can be utilized in the project.
  • Capital items should be cleared through the granting agency and coordinated with the University Sponsored Programs Office to determine if capital items are available as government furnished property and in case of DOD and NASA property might be available through the Federal agency entitled Defense Industrial Equipment Center (DIPEC). DIPEC screening must be done on equipment costing over $10,000. DOD Form 1419 applies to DOD and NASA and should be completed and submitted to DIPEC for DOD and the NASA contracting officer for NASA through the University Sponsored Programs Office.

The screening level for NASA is $5,000. Automated Data Processing Equipment (DARO) costing $25,000 or more must be screened with DD Form 1851. The DD Form 1851 should be submitted to the contracting officer through the University Sponsored Programs Office. It is the University policy that these steps be followed before purchasing procedures are undertaken to obtain equipment through contract funds on the open market.

  • Presently, all requisitions for capital items in excess of $5,000 that are to be purchased by contract or grant funds are sent to the Sponsored Programs Office at Utah State University so that verification can be made that such a purchase is authorized either by the contract or the contracting agency.

For all capital requisitions less than $5,000, it is permissible through evidence of agency approval in writing to be attached to the requisition or written authority given by the Director of the Sponsored Programs Office.

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