Title III Administrative and Financial Requirements Policy #7: Procurement Process Requirements and Exceptions for Single and Sole Source Contracts and Grants
This content is part of a public comment period. For more information, refer to Minnesota Board on Aging – State Plan on Aging.
Authority Reference | Minn. Stat. §16B.97 and §16B.98 Minnesota Office of Grants Management Policies: 08-02: Policy on Rating 08-03: Policy on Writing and Publicizing Grants Notices and Requests for Proposal 08-07: Policy on Single and Sole Source Grants |
Operating Category | Title III Administrative and Financial Requirements |
Policies
1. It is the policy of the federal government and the State of Minnesota that grants and contracts are to be competitively awarded as much as possible. This policy applies to all grants and contracts, including for direct services, professional/technical contracts, and other agreements. With limited exceptions described elsewhere in this policy, AAA grants and contracts for over $5,000 shall be awarded through competitive contract and grant review processes.
2. AAAs may generally determine how frequently to conduct their procurement processes, but must conduct a competitive process at least every five years. AAAs are strongly encouraged to facilitate more frequent opportunities for potential service providers to offer Title III services.
3. AAAs must issue Requests for Proposals as part of the competitive process and promote the RFP to ensure as many potential respondents are aware of the opportunity as possible. RFPs shall include information about the grant program, application criteria, application and proposal requirements, AAA contacts and grant reporting requirements. This is essential so that potential applicants may make informed decisions about applying for and managing Title III grants and contracts.
4. In developing the RFP, AAAs must develop review criteria that are identified in the notice of grant opportunity or request for proposal and a standardized scoring system to rate each application against the chosen criteria.
A. Competitive grant review criteria and standardized scoring systems must include and identify how an AAA’s grant process will implement diversity in grant-making, which is defined as “a process that intentionally identifies how a grant program serves diverse populations, and especially populations experiencing inequities and/or disparities.”
5. A competitive contract or grant is awarded through an application process in which multiple applications are reviewed and grants are awarded to those applicants that most closely meet the selection criteria identified by the AAA. Procedurally, in a competitive grants process, an AAA issues a grant or contract opportunity notice or request for proposal and eligible grant-seekers submit a response. Contracts or grants are awarded to the applicants that are rated the highest against the selection criteria, based on the availability of funds.
6. A standardized scoring system is a rating system that assesses how well each response aligns with each of the selected criterion. As AAAs create a scoring system, the most important criteria to the success of the grant program should be weighted to count more toward to the total score as compared to other factors that are less important. If weights are not published, it is assumed the criteria have equal weight.
7. Responses are assigned a score for each criterion, based upon the extent to which they meet the standard. Scores for each criterion are tallied to arrive at a cumulative score for each application. The scoring system must include weighted criteria that identifies verifiable and measurable diversity, equity, and inclusion in grant-making outcomes and/or grantee performance. The applicant’s past performance as a grantee of that state agency should also be considered when evaluating a grant application.
8. Criteria recommended include:
A. Proposed service plan
B. Past performance
C. Unit cost
D. Geographic coverage
E. Knowledge of the community being served.
F. Coordination with other service providers
G. Quality of service and quality assurance plan
9. In addition to the recommended criterion listed above, AAAs shall consider:
A. How the potential grantee or contractor proposes to prioritize services to individuals with greatest social needs and greatest economic needs.
B. A budget that reflects the full cost of the service including the nonfederal share, when required. Third party in-kind donations shall be determined according to 45 CFR Part 75.306.
C. Minority ownership of the agency or business.
10. Limited Exceptions for Required Procurement Processes
A. Grants and contracts up to $5,000
B. Use of Targeted Group (TG), Economically Disadvantaged (ED) and Veteran Owned (VO) businesses for up to $100,000. See the State of Minnesota's Certified TG/ED/VO Business Directory for more information.
C. Use of the State of Minnesota’s Cooperative Purchasing Venture process for goods, certain services, and utilities. See the State of Minnesota's Cooperative Purchasing Venture website for more information.
D. Single and Sole Source Grants and Contracts as described under Policy #11 below.
11. Sole and Single Source Grants and Contracts
A. For purposes of this policy, a sole source grant or contract is defined as a type of non-competitive grant or contract that is awarded to an entity because it is the only provider of a particular service.
B. For purposes of this policy, a single source grant or contract is a type of non-competitive grant or contract that is awarded to an entity that is selected due to specific reasons, such as a geographic location or community knowledge and relationships that make that entity uniquely able to fulfill the intent of the grant or contract.
C. Single and sole source grants and contracts are to be used when only one entity is reasonably able to meet a grant’s intended purpose and objectives, due to their geographic location, specialized equipment, specialized knowledge and/or community relationships, or as a funder designated sub-recipient.
D. If more than one entity is reasonably able to meet the contract or grant’s purpose and objectives, a competitive process must be used.
E. A single/sole source grant or contract may not be based solely on an AAA’s convenience and/or on prior relationships with a potential service provider.
F. If a single or sole source grant or contract of over $5,000 is made, AAAs must document why a single/sole source process was the only reasonable option by completing the Single and Sole Source Grant Justification Form and submitting it to MBA for approval prior to entering into the single/sole source contract or grant or obligating funds to the service provider.
Procedures
1. AAAs determine which Title III services need to be procured and develop a Request for Proposals.
2. As part of the process to develop the RFP, review criteria are selected, ranked, and weighted relative to their importance. These criteria must be finalized prior to issuing the RFP and included in the RFP.
3. Essential elements of a notice of a grant opportunity or RFP include:
A. A description of the services being procured
B. The AAA’s goals and priorities in making the grants
C. How services provided under the grant or contract will serve individuals with greatest social needs and greatest economic needs
D. Eligibility requirements for applicants
E. A statement on whether a multi-organization collaboration is required, welcome or not allowed for this grant program
F. Grant or contract outcome expectations and reporting requirements
G. Deadlines and timelines for each step in the application and award process
H. Amount of money for distribution and how it will be allocated
I. A description of the selection criteria and their relative weight in the ranking system (see #2 above)
J. Detailed application formatting instructions or an application template
K. General information about the review process and a general overview of the composition of the review committee
L. Requirements for in-kind or matching funds
M. Core program requirements, such as solicitation of voluntary contributions
N. The name and contact information of a contact person at the state agency
O. A statement about when information in their response becomes public data
4. At a minimum, the RFP must be posted on the granting agency’s website per M.S. 15.994. AAAs should pursue additional methods to reach potential applicants that may include: promotion through social media, identifying communities that have not historically participated in the grant application process, culturally-specific and community-based organizations, e-mail, AAA distribution lists, targeted newspapers, notifying prior applicants and recipients and the Minnesota State Register.
5. Notices of grant opportunities and RFPs must clearly communicate grants program information that will help potential applicants determine whether and how to submit an application. AAAs should pursue additional methods to provide clear instructions to potential applicants such as conducting webinars or conference calls.
6. AAA staff develop a grant application scoring sheet that facilitates the scoring process and the scoring sheet is used by all reviewers. To score responses with the highest degree of precision, AAAs must use a numeric (quantitative) scoring system rather than qualitative rating or ranking systems.
7. AAAs must assemble a review team that includes at least a member of a community with greatest social needs and/or greatest economic need to review responses to the Request for Proposals. AAAs should recruit and utilize community-based grant reviewers.
8. Review team members should review each response and assign preliminary scores for each criterion in advance of the review meeting.
9. Review teams meet to conduct a review meeting in person, virtually, or by phone to discuss each application and its score.
10. After the review team has met and the scores have been finalized, AAAs may incorporate the scores into final funding recommendations that may also be based on geographic distribution, services to special populations, and the applicant’s history as an AAA’s grantee or contractor and their capacity to perform the work.
Single and Sole Source Procedures
1. AAAs determine the purpose and objectives of each grant and contract they wish to establish as part of the Area Plan development or annual update process.
2. If the AAA is concerned there may only be a single service provider capable of delivering the needed service, the AAA shall conduct a search by using established contacts in the field, the internet, or other directories to determine whether there are multiple service providers that are reasonably able to provide needed services under the grant or contract. If there is more than one provider that is reasonably able to meet the purpose and objectives of the grant or contract, a competitive process must be used.
3. If, after conducting the search, the AAA determines that there is only one entity that is reasonably able to meet the purpose and objectives of the grant or contract, the AAA may begin the process to make a single or sole source grant or contract to that entity.
4. The research and justification for this decision must be documented in a Single and Sole Source Grant Justification Form signed by the AAA’s financial management director and Executive Director as well as by MBA prior to encumbrance.
5. Completed Single and Sole Source Grant Justification Forms should be maintained in the corresponding grant or contract file. If the contract or grant is randomly selected for review during an MBA site visit, MBA would expect to see this documentation as part of the site review process.
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