ALCOAST 359/20 - SEP 2020 INCREASED THRESHOLDS FOR PROCUREMENTS SUPPORTING HURRICANE SALLY RESPONSE AND DEPARTMENT OF LABOR LIMITED EXEMPTION AND WAIVER

R 231606 SEP 20
FM COMDT COGARD WASHINGTON DC//CG-91//
TO ALCOAST
UNCLAS //N07500//
ALCOAST 359/20
COMDTNOTE 7500
SUBJ:  INCREASED THRESHOLDS FOR PROCUREMENTS SUPPORTING HURRICANE SALLY RESPONSE AND
DEPARTMENT OF LABOR LIMITED EXEMPTION AND WAIVER
A. CPO Memo Increased Thresholds for Procurements Supporting Hurricane Sally Response
Efforts, dated 15 September 2020
B. DHS Acquisition Alert 20-32, DOL-OFCCP Hurricane Sally Limited Exemption, dated 16
September 2020
C. Joint CPO and CFO Memo Increase in Micro-Purchase Threshold and the Use of DHS
Purchase and Fleet Card Transactions Supporting Hurricane Sally Response, dated 16
September 2020
1. Background – An emergency for Hurricane Sally was declared by the President on 14
September 2020 for the states of Alabama, Louisiana and Mississippi. To facilitate
response to this emergency, and in accordance with Federal Acquisition Regulation (FAR)
Subpart 13.201(g), the Chief Procurement Officer (CPO) issued REF (A), which increased
the micro-purchase threshold (MPT)(a) to $20,000 in the case of any contract to be
awarded and performed, or purchase to be made, inside the United States; and (b) to
$30,000 in the case of any contract to be awarded and performed, or purchase to be made,
outside the United States. Note that the portion of the FAR 2.101 MPT definition
relating to the thresholds for the Construction Wage Rate Requirements statutes
(commonly referred to as the Davis-Bacon Act, $2,000) and the Service Contract Labor
Standards statutes (commonly referred to as the Service Contract Act, $2,500) do not
change.
2. REF (A) also increased the FAR 2.101 simplified acquisition threshold to (a) $750,000
for any contract to be awarded and performed, or purchase to be made, inside the United
States; and (b) $1.5 million for any contract to be awarded and performed, or purchase
to be made, outside the United States. The threshold for the use of simplified procedures
for certain commercial items in FAR 13.500(c) is increased to $13 million for
procurements in support of this emergency.
3. The authority to use these increased thresholds applies only to procurements with
a clear and direct relationship to the support of this emergency.
4. For procurements with a clear and direct relationship in support of Hurricane Sally
response, the DHS purchase card is the preferred method to purchase and pay for goods
and services below the increased MPT.
5. All requests for cardholder increase to the MPT must have Field Organizational Program
Coordinator (FOPC) and Chief of the Contracting Office (COCO) concurrence, and be submitted
to the CGHQ Purchase Card Team identifying the cardholder, account number, and amount of
increase. The CGHQ Purchase Card Team will update the bank's system to reflect the increased
single purchase limit. The system should also be updated to reflect subsequent monthly
purchase limit increases.
6. All purchases must clearly document the direct connection to Hurricane Sally response
when using these increased thresholds for single purchases and all documentation (i.e.
receipts, invoices, etc.) must be maintained to support this effort.
7. As a reminder, CHs should make every effort to obtain three (3) quotes prior to making
purchases. CHs should obtain verification from vendors that commodities are readily available
prior to making the purchase and anticipate increased costs as a result of “price gouging.”
It is imperative that CHs appropriately document why paying more is justified and the
cost is considered fair and reasonable.
8. CHs deployed in response to any related relief effort should make every attempt to
ensure prior approval from their AO is obtained. CHs should contact their AOs and provide
all relevant information so that their AOs can then document the pre-approval by email.
In situations where communication channels are impaired and CHs are prevented from
contacting their AOs, the CHs should document all purchases on the DHS Form 1501. When
communications are resumed, CHs should contact their AOs immediately to obtain the
required approval. Please ensure all documentation is maintained and filed accordingly
for possible future audits/reviews.
9. Procurement officials should take into account local area set-asides, giving first
consideration to small business, local area set-asides when feasible. See Job Aid - Steps
to Comply with Local Area Preference AND Justification for Expenditures
to Other than Local Firms template on the Coast Guard Acquisition Road Map at
https://cg.portal.uscg.mil/units/cg9/Pages/CGArm.aspx.
10. Cardholders and Approving Officials must perform timely verification and
certification of statements in the Purchase Card Application (PCA) system. The CGHQ
Purchase Card Team is available to assist with hardcopy certification if there are
issues with accessing PCA.
11. The threshold increases will remain in effect until 31 December 2020 unless otherwise
amended.
12. Federal Procurement Data System-Next Generation (FPDS-NG) reporting requirements
are tied to the increased micro-purchase threshold.
13. There is not a National Interest Action (NIA) code related to Hurricane Sally in
FPDS-NG at the time of this ALCOAST development. If and when an NIA code is announced,
COMDT (CG-913) will announce it to the Contracting and Procurement Enterprise via email.
14. REF (B) shared U.S. Department of Labor’s Office of Federal Contract Compliance
Programs (DOL-OFCCP) limited exemption and waiver for new Federal contracts providing
Hurricane Sally relief efforts from 15 September 2020 – 15 December 2020. Applicable
contracts should contain the FAR clauses provided in REF (B) which exempt the contractor
from developing written affirmative action programs, preparing reports, or providing
notices required by some DOL-OFCCP administered laws.
15. The exemption and waiver do not exempt a covered contractor from their obligation
to comply with other federal, state and local civil rights laws.
16. Please email questions regarding your purchase card use to the Purchase Card team
at PURCHASE.CARD@USCG.MIL.
17. POC: Maroulla Dallas, COMDT (CG-9131), 410-562-9406 or Maroulla.P.Dallas@uscg.mil.
18. Mr. Michael W. Derrios, Head of Contracting Activity, sends.
19. Internet release is authorized.