Are service contracts funded through ARRA exempt from bidding?
Although local governments are usually not required to bid out service contracts, the Grants Management Common Rule requires grant recipients (including local governments) to solicit competition whenever possible. The Rule does allow for something called “competitive proposals,” which allows grant recipients (including local governments) to use a request for proposal (RFP) process and award to the “responsible firm whose proposal is most advantageous to the program, with price and other factors considered” (rather than to the lowest responsive, responsible bidder). Before using an RFP process to solicit services, however, local governments should get approval—in writing—from the funding agency (state or federal). If your local government is receiving ARRA funding through a bond or other non-grant funding, check the information provided by the funding agency to determine if the agency will require you to bid service contracts, and ask the funding agency if the information provided to yo
