COVID-19, FLOOD, WIND, FIRE, & FEMA FUNDING AVAILABLE!

FEMA Federal Procurement Policies: Key Updates for 2024

FEMA’s federal procurement policies are vital for municipal entities navigating disaster recovery. As of October 1, 2024, new revisions by the Office of Management and Budget (OMB) will impact how these entities manage purchasing under FEMA awards. Here’s a summary of the critical changes:

Background

On April 22, 2024, OMB updated its guidance for grants and agreements in Title 2 of the Code of Federal Regulations for FEMA procurement. These updates affect all FEMA awards dated on or after October 1, 2024. The revisions specifically target federal procurement standards, ensuring consistent and fair practices across various entities.

Forklift stacking pallets containing cases of bottled beverages.

Key Procurement Standards

States, Territories, & Indian Tribes:

These entities must follow their own documented procurement policies per 2 C.F.R. § 200.317. They must comply with domestic preference requirements and federal contract provisions. While they are encouraged to implement socioeconomic affirmative steps, only states and territories must adhere to rules regarding recovered materials.

Local Governments & Nonprofits:

Required to have documented procurement policies reflecting state, local, or tribal laws, these entities must also comply with federal standards outlined in 2 C.F.R. §§ 200.318-200.327. Noncompliance may result in remedies as per 2 C.F.R. § 200.339.
Person counting cash over a wooden desktop.
Stacks of lumber inside of a warehouse.

Key Revisions to Note

Geographic Preferences:

The previous prohibition on geographic preferences in evaluating bids or proposals has been removed, allowing more flexibility as long as it aligns with other governing laws.

Socioeconomic Affirmative Steps:

Required to have documented procurement policies reflecting state, local, or tribal laws, these entities must also comply with federal standards outlined in 2 C.F.R. §§ 200.318-200.327. Noncompliance may result in remedies as per 2 C.F.R. § 200.339.

Veteran-Owned Businesses:

These are now specifically listed as target firms to consider during procurement.

Recovered Materials:

There’s a new emphasis on using products and services that are sustainable, recyclable, or energy-efficient, although this does not apply to Indian Tribes and nonprofits.

Conclusion

For municipal entities, understanding these updated procurement standards is crucial for ensuring compliance and optimizing disaster recovery efforts. For further details and resources, including training and checklists, visit FEMA’s procurement webpage.

By staying informed and compliant with these updated standards, municipal entities can effectively manage FEMA awards and contribute to more efficient and sustainable disaster recovery processes.

Berquist Recovery Consulting is here to assist you in navigating these changes and ensuring your disaster recovery efforts are both compliant and effective.

Use this information at your own discretion. Additional resources: