I. Introduction Executive Summary of the Acquisition Guidelines Attachment 7 into The attached Acquisition Guidelines, to be incorporatec the Bank's Planning and Control Manual, establish a basic framework for the procurement of supplies, equipment, construction and services. The Guidelines are intended to standardize the procurement process; facilitate the acquisition of quality products and services at competitive prices; and minimize cisputes with venacrs. Although discretion and subjective judgment cannot be totally avoided, these standards are furnished to ensure that materials and services are obtained efficiently and economically as a result of fair dealing with qualified vendors. The new Guidelines also embody the Federal Reserve System's continuing commitment to contracting with small and cisadvantaged business firms, and are consistent with the policies of the Small Business Act and regulations thereunder. Accordingly, affirmative steps must and will be taken in compliance with the Guidelines to ensure that these covered companies are utilized when possible as sources of goods and services. II. Background The Acquisition Guidelines have been developed as a result of issues raised in litigation involving the award of certain Reserve Bank contracts. This litigation focused on the applicability of the Federal Procurement Regulations to the Reserve Banks and the fairness of the Reserve Banks' procedures in the evaluation of bios and the justification of contract awards. Although the Reserve Banks cia not believe the Federal Procurements Regulations were applicable to them, there was a consensus among the Reserve Banks, especially in light of their public responsibility, that a ة ceveloped. At the request of the Conference of Presicents, tre Subcommittee of Legal Counsel in 1984 undertook a review of the procurement policies and procedures followed by the Reserve Banks and, in turn, appointed task force to formulate set cf proposed uniform guidelines fur use by the Reserve Banks. This task force also undertook a review of the Small Business Act of 1953 (Act) and the regulations thereunder for the purpose cf implementing the Congressional policy of protecting and fostering the interests of small business concerns and of socially and economically disadvantageo ("minority") small business concerns. while the Act does not now apply to the Board of Governors or the Reserve Banks, legislation has been proposed in Congress bring the Federal Reserve within the coverage of the Act. to to Subsequently, in June and July of 1985, the Conference of Presicents gave its final approval to the Subcommittee of Legal Counsel's recommendations for the incorporation of "Reserve Bank Uniform Acquisition Guidelines" and "Small ano Disadvantagec Business Acquisition Procedures" into the general acquisition policies of each Federal Reserve Bank. The recommended guidelines and procedures follow the principles contained in the Federal Acquisition Regulations, the American Bar Association's Model Procurement Code for State and Local Governments, and the Small Business Act of 1953, but permit the Reserve Banks somewhat greater flexibility and discretion in the exercise of procurement responsibilities. The Acquisition Guidelines of the Federal Reserve Bank c Boston are substantially similar to the guidelines recommended by the Subcommittee of Legal Counsel and also incorporate a number of explanatory and procedural comments contained in the craft procurement guidelines of the New York and Minneapolis Reserve Banks. As a result, the Boston Reserve Bank's Acquisition Guidelines reflect the procurement policies and procedures currently in place at other Reserve Banks, also strike balance between uniformity and flexibility. but a The Acquisition Guicelines ате limited == as accuisition prccecures LC :: and including the contract awa:c. They == nct ceal with issues cf contract managemer: afte: mccifications, terminations, 0: coscute resolution poccecures. The cecision not :: access such considerations is casec Cr the views of the Subcommittee of Legal Counsel that inclusion of unifcom contract terms and concitions in the Guicelines might ́unculy innibi: a Reserve Bank's ability to ceal with its suppliers without materially improving its position should litigation ensue. III. Accuisition Planning The cepartments are hencefcath encouraged to anticipate their needs and to coorcinate and communicate thei: requirements to the Bank's Purchasing Unit. Timely notification is ceemec essential, particularly for major accuisitions, for the purposes of selecting the appropriate methcc of procurement, establisning the specifications anc assuring the selection of the most responsive vencor. Sufficient leac time, preferably a minimum of sixty (60) cays acvance notice, is also neecec prior to the renewal or execution of service contracts subject to the Service Contract Act, so that applicable wage and fringe benefit determinations can be obtained from the Department of Labor. IV. Methods of Acquisition The Acquisition Guidelines prcvice for four separate methocs of acquisition: competitive bicaing, competitive proposals, small purchases and "other acquisitions". The first two methods are generally utilized for acquisitions over $50,000, although purchases below this amount may be formally solicited. Unces both competitive bidding and competitive proposal methods, awarc must be made on the basis of criteria specified in the solicitation. Competitive biccing involves the issuance of an Invitation for Bic (IFB). Specifications must be stated precisely |