ALCOAST 261/17 - SEP 2017 INCREASED THRESHOLDS FOR PROCUREMENTS SUPPORTING THE HURRICANE HARVEY RESPONSE

R 051551 SEP 17
FM COMDT COGARD WASHINGTON DC//CG-91//
TO ALCOAST
UNCLAS//N16000//
ALCOAST 261/17
COMDTNOTE 16000
SUBJ:  INCREASED THRESHOLDS FOR PROCUREMENTS SUPPORTING THE HURRICANE HARVEY RESPONSE
A. Head of Contracting Activity (HCA) Governance Memorandum 91.4-0 (HCA-GM 91.4-0)
Increased Thresholds for Procurements Supporting the Hurricane Harvey Response.
B. FAR 26.2, Disaster or Emergency Assistance Activities
C. HSAM 3026.2, Disaster or Emergency Assistance Activities
1. Background – A major disaster was declared by the President on 25 August 2017, as a
result of Hurricane Harvey. To facilitate the response to this major disaster, the Chief
Procurement Officer, in memorandum dated 27 August 2017, increased procurement authority
thresholds. The authorities for these increased thresholds apply to procurements
supporting the major disaster response and recovery efforts only.
2. REF (A) was released on 28 August 2017 to document and authorize the use of special
emergency procurement authorities (DHS Federal Acquisition Regulation Deviation 17-02 -
Implementing Revised Statutory Conditions for the Exercise of Special Emergency Procurement
Authorities) to increase certain thresholds for Department of Homeland Security (DHS)/Coast
Guard procurements in support of the Hurricane Harvey major disaster response.
3. Effective 27 August 2017, the HCA authorized the increases in the micro-purchase
threshold, simplified acquisition threshold and threshold for the use of simplified
procedures for commercial items for Coast Guard procurements. This authority applies only
to procurements supporting Hurricane Harvey in the major disaster area, as defined in the
Presidential declaration, which may be subsequently amended. All purchases under this
authority must have a clear and direct relationship to the support of this major disaster.
All contract or purchase order files must clearly document the connection to Hurricane
Harvey response/recovery in the disaster area when using these increased thresholds:
   a. The micro-purchase threshold is increased to $20,000 for all cardholders and any
contract to be awarded and performed, or purchase to be made inside the United States;
   b. The simplified acquisition threshold is increased to $750,000 for any contract to
be awarded and performed, or purchase to be made inside the United States; and
   c. The use of simplified procedures for certain commercial items is increased to
$13 million.
4. REFs (B) and (C) require Procurement Officials to give preference to local firms in
the disaster area under the Stafford Act. Procurement officials should take into account
local area set-asides, giving first consideration to small business, local area set-asides
when feasible.
5. Procurement personnel are reminded to review HSAM 3018.2, Emergency Acquisition
Flexibilities, and FAR 18.2, Emergency Acquisition Flexibilities, for acquisition
flexibilities present without the presence of an emergency declaration, including sole
source awards to various socio-economic programs (i.e., 8(a), Service-Disabled Veteran-Owned,
Woman-Owned, Economically Disadvantaged Woman-Owned, and HUBZone small businesses).
6. It is expected that the major disaster area may be revised as the storm moves along the
Gulf Coast. As the geographic area applicable to the threshold increases, the HCA-GM is
simultaneously revised without the need to issue a revision.
7. The threshold increases will remain in effect until 31 December 2017, unless otherwise
modified.
8. Please direct questions regarding this ALCOAST to Ms. Helen Dawson, COMDT (CG-9131),
(202)475-3271, Helen.F.Dawson@uscg.mil.
9. Mr. Michael W. Derrios, Head of Contracting Activity, sends.
10. Internet release authorized.