EDA explains procurement, subaward vs. contractor distinctions and competition rules for AI grant applicants

Nancy Isle, a program attorney at the Economic Development Administration, told webinar attendees that all procurements under EDA awards must meet federal procurement regulations and an agency's own written procedures. "All procurements need to be done with full and open competition," she said, citing 2 CFR procurement requirements.

Isle outlined key differences between subawards and contractors under 2 CFR 200.331: subrecipients typically carry programmatic responsibility, are measured by program performance metrics and make program decisions, while contractors supply goods or services competitively and provide ancillary support. She told applicants to label proposed contractual costs clearly as either subawards or contractor procurements.

Isle also reviewed acquisition thresholds applicants should know: the micro-purchase threshold is currently $15,000, and the simplified acquisition threshold for small-purchase procedures is $350,000; procurements must reflect reasonableness and appropriate competition regardless of the threshold.

She cautioned against procurement practices that could restrict competition, including allowing a contractor who helped draft specifications to compete on the resulting solicitation, and noted that non-competitive procurements are rarely approved and require written EDA approval.

Isle added that for-profit entities may participate in projects as contractors or employers, but they are not eligible for direct award funding as recipients under this NOFO; funds also may not be paid to contractors that are simultaneously providing match to the same award.

The presentation reminded applicants that contractor names are not generally included in the budget narrative and that proposed procurements should follow the procurement methods that best fit the dollar thresholds and regulatory requirements.