1. Implementing 2 CFR 200 Carrie Kronberg Housing Programs Manager

2. Implementing Uniform Guidance in Colorado
Colorado State Controller Guidance on 2 CFR 200
Advance Payment not applicable
Procurement implementation postponement
Challenges
Procurement
Issues to Address
Competition Clause
Working with HUD

3. State Controller (SCO) Guidance https://www. colorado

4. State Controller (SCO) Guidance
AVAILABLE NOW
Links to Federal publications
SCO Guidance and Interpretation of 2 CFR 200 for Colorado State Agencies
Contractor vs. Subrecipient Determination Tool
Risk Calculation Tool
Internal Control Policy
Link to Additional Guidance and Resources on Internal Controls
PENDING
SCO Policy on Conflict of Interest
Policy on Grants, Contracts, OMB Uniform Guidance, and Colorado Procurement Code

5. State Controller (SCO) Guidance Advance Payment Requirement Not Applicable
Department program staff were originally concerned about the Advance Payment requirement that was introduced in Part 200 consultant training in May 2014, and later re-iterated by regional HUD office
SCO confirmed that pursuant to 2 CFR (a), state payments are governed by Treasury-State CMIA agreements and subject to different regulations
State of Colorado Fiscal Rules generally prohibit advance payments, except under limited circumstances or by Fiscal Rule waiver granted by the SCO

6. State Controller (SCO) Guidance Procurement Implementation Postponed
SCO elected to postpone the new provisions of the Uniform Guidance applicable to the State’s Procurement Code and Rules until July 1, 2017
Issued guidance that State agencies should continue to follow existing procedures regarding grants
SCO policy on procurement for grants is pending

7. State Controller (SCO) Guidance Challenges
Blanket, statewide approach when the devil is in the details
Program staff need to communicate functional specifics and work with SCO for more detailed application guidance that applies to our department’s circumstances
SCO workload is a barrier
With delay in Procurement requirements implementation, conflict between State and local requirements, particularly for CDBG-DR

8. Procurement Issues to Address
Potential conflicts with SCO Guidance
States follow own procurement rules, all other non-Federal entities, including state subrecipients must follow Part 200 rules
Local CDBG Entitlements and PJs actively implementing Part 200 requirements
Frequent use of CDBG-DR for housing new construction means Division of Housing must monitor a higher volume of procurement activities

9. Procurement Competition Clause
“…In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements...”
Previously existed in Part 84, applicable to non-profits
Problematic given State’s role as gap funder
Many agencies want to hire GC during design phase to ensure buildable, cost-effective product

10. Procurement Competition Clause - Strategies
Educate public- and private-sector partners
Work Around: When General Contractor hired too early
Cost Reasonableness analysis
General Contractor as Construction Manager only
CDBG/CDBG-DR funds only support subcontracts that comply with procurement requirements

11. Working with HUD Office
2 CFR Part 200 is not HUD-specific, language does not always align with familiar HUD programs
Work with your HUD representative and other HUD staff to decipher requirements
Review regulations, determine interpretation, check with HUD staff
Best to ask early in decision-making process
Verify applicability for each subpart

12. Questions?