Effective Feb. 1st, 2022
Notification sent by Evonne Pedawi, Executive Director of MSU’s Contract and Grant Administration on January 31st, 2022.
In accordance with 2 CFR 200.320, Michigan State University (MSU) is providing notification that the university will increase its micro-purchase threshold to $25,000 for federally funded procurements effective February 1st, 2022. MSU’s current micro-purchase threshold for federally funded procurements is $10,000, however MSU’s Request for Quotation process begins at $25,000 for all other university procurements. The federal micro-purchase threshold increase will create consistency with procurements across the university and reduce administrative burden. A current subset of Section 270.7.2 of MSU’s Manual of Business Procedures is below for reference.
https://upl.msu.edu/mbp/mbp-270/index.html
270.7.2 — COMPETITIVE SOLICITATION PROCESS
- In order for bids to be valid, competitive solicitations must be performed with Procurement staff involvement before any communication to suppliers on the potential bidding opportunity.
- A Request for Quotation (RFQ) process is required for acquisitions that are equal to or greater than $25,000 (but may also be used for purchases under $25,000, such as for federal programs with lower limit of $10,000) when the goods or services required can be clearly defined. These are typically used for commodity purchases with defined items and estimated quantities and for well-defined service requirements or equipment purchases.
To comply with the federal guidance for increasing the micro-purchase threshold set in 2 CFR 200.320 (a)(1)(iv) (below for reference), MSU is self-certifying a micro-purchase threshold of $25,000 and will annually self-certify, beginning in July 2022. In addition, MSU will continue to comply with the documentation retention requirements in 2 CFR 200.334. MSU’s most current Single Audit report (https://ctlr.msu.edu/download/fa/financialstatements/SingleAudit20192020.pdf), includes the qualification of MSU as a low-risk auditee on Page 42.
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.320#p-200.320(a)(1)(iv)
Non-Federal entity increase to the micro-purchase threshold up to $50,000. Non-Federal entities may establish a threshold higher than the micro-purchase threshold identified in the FAR in accordance with the requirements of this section. The non-Federal entity may self-certify a threshold up to $50,000 on an annual basis and must maintain documentation to be made available to the Federal awarding agency and auditors in accordance with § 200.334. The self-certification must include a justification, clear identification of the threshold, and supporting documentation of any of the following:
- A qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent audit;
- An annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or,
- For public institutions, a higher threshold consistent with State law.
With the information provided in this notification, MSU believes that it has met the necessary requirements to establish a $25,000 micro-purchase threshold effective February 1st, 2022.
MSU Self Certifications
Fiscal Year 2024
Per the requirements in 2 CFR 200.320, MSU is self-certifying a micro-purchase threshold of $25,000. The justification is the same as the initial notification and MSU’s most current Single Audit still reflects the university as a low-risk entity.
Certified on June 29th, 2023 by Evonne Pedawi, Executive Director, MSU Contract and Grant Administration.
Fiscal Year 2023
Per the requirements in 2 CFR 200.320, MSU is self-certifying a micro-purchase threshold of $25,000. The justification is the same as the initial notification and MSU’s most current Single Audit still reflects the university as a low-risk entity.
Certified on June 30th, 2022 by Evonne Pedawi, Executive Director, MSU Contract and Grant Administration.
