ALCOAST 263/17 - SEP 2017 INCREASED THRESHOLDS FOR PROCUREMENTS SUPPORTING THE HURRICANE IRMA RESPONSE

R 071613 SEP 17
FM COMDT COGARD WASHINGTON DC//CG-91//
TO ALCOAST
UNCLAS//N16000//
ALCOAST 263/17
COMDTNOTE 16000
SUBJ:  INCREASED THRESHOLDS FOR PROCUREMENTS SUPPORTING THE HURRICANE IRMA RESPONSE
A. Head of Contracting Activity (HCA) Governance Memorandum 91.5-0 (HCA-GM 91.5-0)
Increased Thresholds for Procurements Supporting the Hurricane Irma Response.
B. FAR 26.2, Disaster or Emergency Assistance Activities
C. HSAM 3026.2, Disaster or Emergency Assistance Activities
1. Background – An emergency was declared by the President on 5 SEP 2017, as a result of
Hurricane Irma for the territory of the U.S. Virgin Islands, all of the Commonwealth of
Puerto Rico, and the State of Florida. To facilitate the response to this emergency, the
Acting Chief Procurement Officer, in memorandum dated 6 SEP 2017, increased procurement
authority thresholds. The authorities for these increased thresholds apply to procurements
supporting the Hurricane Irma response and recovery efforts in the emergency area, as
defined in, and as may be subsequently amended in a Presidential emergency/major disaster
declaration only.
2. REF (A) was released on 7 SEP 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 Irma emergency response.
3. Effective 6 SEP 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 Irma in the emergency 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 emergency. All contract or purchase order files
must clearly document the connection to Hurricane Irma response/recovery in the emergency
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; and
$30,000 in the case of any contract to be awarded and performed, or purchase to be made,
outside the United States for all cardholders;
   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 U.S., and $1.5 million
for any contract to be awarded and performed, or purchase to be made, outside the U.S.; 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
emergency area under the Stafford Act. Procurement officials should take into account local
area set-asides, giving first consideration to small business and 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. As the President’s Hurricane Irma declarations are revised (as shown on the FEMA website:
https://www.fema.gov/disasters), the geographic area applicable to the threshold increases,
this HCA-GM is simultaneously revised without the need to issue a revision. It is expected
that the emergency 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 DEC 2017, unless otherwise modified.
8. Please direct questions regarding this ALCOAST to POC: 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.