Arkansas Department of Education Change in Federal Micro and Small Purchase Threshold for School Food Authorities

Memo Information

Memo Number
CNU-19-009
Memo Date
8/17/2018
Memo Type
Regulatory
Unit
Child Nutrition
Regulatory Authority
2CFR 200.320 (a), 2CFR 200.320 (c), Arkansas Code Annotated 6-21-304-305
Response Required
NO
Attention
Superintendents; General Business Manager

Primary Contact Information

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Memo Text

Attention Superintendents, Business Managers, Child Nutrition Directors

 

 

Provisions of the National Defense Authorization Acts (NDAA) for Fiscal Year (FY) 2018, Pub L. No. 115-91 became law on December 12, 2017.  Section 806 raised the micro-purchase threshold from $3,500 to $10,000.  Section 805 raised the small purchase (simplified acquisition) threshold from $100,000 to $250,000.

 

The higher thresholds for micro-purchases and small purchases are not in effect until implemented by the Federal Acquisition Regulation (FAR). In order to allow maximum flexibility in light of the changes to the NDAA for FY2018, the Office of Management and Budget (OMB) is granting an exception allowing recipients to use the higher threshold of $10,000 for micro-purchases and $250,000 for small purchases in advance to revisions to FAR at 48 C.F.R. Subpart 2.1 and the Uniform Guidance.  This exception takes effect as of June 20, 2018.

 

The state small purchasing threshold for bidding under Ark. Code Ann. § 6-21-304 is $20,500 for the 2018-2019 school year.  School Food Authorities (SFAs) are reminded to follow the stricter state threshold unless the district has implemented procedures of a small purchase threshold lower than the state level.    

 

The Child Nutrition Unit will be completing Procurement Reviews during the 2018-19 school year for those districts scheduled for an Administrative Review.  Purchases during the 2017-18 school year will be reviewed; therefore the micro-purchase threshold of $3,500 and small purchase threshold of $20,000 will be used during these reviews.


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