18469_Authority_June

municipalauthorities.org | 63 • Community engagement and public participation: The updated guidance encourages federal agencies and recipients to conduct community engagement activities and permits the use of federal funds for public participation and community engagement when related to an award. • Labor Standards: The revisions address labor standards for federal grant awards, emphasizing the importance of supporting job growth in local communities. The Uniform Guidance revisions also include noteworthy updates to procurement standards: • Removal of geographic preferences prohibition: The previous prohibition against using geographic preferences in procurement evaluations has been eliminated. This change provides recipients with greater flexibility in their procurement processes. • Emphasis on contracting with diverse businesses: The updated guidance continues to encourage recipients to provide opportunities for small businesses, minority-owned firms, women's business enterprises, and labor surplus area firms. Recipients are urged to take affirmative steps to ensure these entities are utilized when possible. Organizations should consider updating their procurement policies to ensure compliance and improve efficiency. Some key policy updates to consider: • De minimis indirect cost rate: ƒ If applicable, update procurement policies to reflect the increase in the de minimis indirect cost rate from 10 to 15 percent. • Geographic preferences: ƒ Remove references to the prior prohibition on geographic preferences in procurement evaluations. ƒ If geographic preferences are to be used, update policies to ensure that they comply with other federal and state laws. • Fixed amount awards and subawards: ƒ Update procurement policies to reflect the increase in the fixed amount subaward threshold from $250,000 to $500,000. ƒ Ensure subaward monitoring procedures align with updated federal requirements. • Sustainability and labor standards: ƒ Integrate updated federal labor standards, especially if contracts involve job creation or economic development projects. ƒ Include sustainability considerations in procurement evaluation criteria. • Small, minority, and women-owned businesses: ƒ Strengthen policies that encourage contracting with small businesses, minority-owned firms, women’s business enterprises, and labor surplus area firms. ƒ Include “veteran-owned businesses” in contract considerations of disadvantaged businesses ƒ Require affirmative steps, such as outreach efforts and subcontracting opportunities, to increase diversity in procurement. Ultimately the Uniform Guidance updates are designed to streamline processes, reduce administrative burdens, and enhance the management and transparency of federal financial assistance. HBK is here to help. Let us be your trusted advisor and resource as you navigate these changes and all the complexities of federal grants. S OMB article continued from page 55.