FAR as Guidance for Grantees

Q. Does the FAR Online Representations and Certifications Application (ORCA) requirement apply to a Grantee's proposal submission process? We received an email stating that beginning January 1, 2005 the FAR will require the use of ORCA in federal solicitations. We understand that the Best Practices Manual references FAR primarily as a guidance tool for Grantees. We want to confirm that this requirement does not apply to our procurement process. A. The FAR Online Representations and Certifications are not applicable to grantees. The only FAR requirements that grantees must adhere to are the cost principles in FAR Part 31 for determining allowable costs on grantee third party contracts. Grantees should continue to use the certs and assurances published annually by FTA and accessible through the TEAM system.

Q. Bids can be thrown out for good business reasons. What is your definition of good business reasons? A. The Federal Acquisition Regulations (FAR), Subpart 14.404-1, discuss the circumstances when all bids received may be rejected and the IFB cancelled. There are some ten reasons discussed and we think this guidance should cover all of the conceivable circumstances when rejection of bids may be the proper thing to do. The FAR may be accessed online at: http://www.arnet.gov/far. Q.  Are there any sections of FAR that address Design-Build Contracts specifically?  Our firm is working for the Metropolitan Washington Airports Authority on the Dulles Corridor Metrorail Project.  It is anticipated that the Design-Build approach will be used? A. FAR subpart 36.3—"Two Phase Design Build Selection Procedures" discusses the Federal approach to awarding Design Build contracts.

Q. The FTA Best Practices Procurement Manual refers to the FAR, but often states that the FAR provides additional information which is not binding on grantees. What is the relationship between FTA Circular 4220 and the FAR? How should the FAR be used as guidance for FTA procurements? A. FTA Circular 4220.1E* contains requirements that grantees must comply with in their third party contracting activities. The Best Practices Procurement Manual (BPPM)** is intended to give grantees a convenient insight into FTA requirements, such as those of Circular 4220.1E, the Code of Federal Regulations,*** etc., as well as transit industry "best practices" in different procurement contexts. It is never the intent of the BPPM, however, to impose new requirements on grantees. The BPPM often references the FAR**** for information only. Grantees are not required to comply with the FAR. When the FAR is cited in the BPPM, it is done so that grantees may see how the Federal government treats a given issue. Grantees may learn something that will be useful from the FAR, and if so, they may use the FAR technique or modify it to suit their own particular situation. Grantees may also review the FAR and find that it offers nothing helpful for their particular problem, in which case grantees are free to ignore the FAR approach. In other words, the FAR material included in the BPPM is just another data point for grantees to be aware of when they are structuring solutions to particular problems. But the FAR data points are no more important than other data points, such as the various industry "best practices" that are discussed in the BPPM. In addition to the FAR and industry "best practices," you will also find some references to the Model Procurement Code, or to various State codes. Here again the intent is to give the grantee information that may be useful in developing solutions to particular problems. ____________ *FTA Circular 4220.1E is available on the Internet. **The BPPM is available on the Internet. ***The Code of Federal Regulations is available on the Internet at: www.gpoaccess.gov/cfr/index.html ****The FAR is available on the Internet at: http://www.arnet.gov/far/.