Capitol Corner February 2020

[vc_row][vc_column][vc_column_text]

Senate Majority Leader Mitch McConnell (R-KY) has developed a short list of priorities that focuses on a group of energy measures that are being put together in committee, a highway reauthorization bill, and a package of health care measures that have to be done before May 22. These measures, which were prioritized during meetings with GOP chairmen, are said to be bipartisan and therefore have a good chance of being passed over the next few months. They will require 60 votes to advance in the Senate, so Republicans will need some Democratic support.

The White House backs McConnell’s plan and is working with the Senate GOP on details. An immediate focus is how to finance the $287 billion, five-year surface transportation reauthorization bill (S. 2302). House Democrats have proposed a $760 billion infrastructure blueprint called Moving Forward, found here, that would cover highways, rail, wastewater, and broadband over five years, but also without a plan to pay for it.

The House and Senate have also reached an agreement on a five-year reauthorization of the Older Americans Act (OAA). The agreement, entitled the Supporting Older Americans Act of 2020, is now on a fast track for action by Congress and is expected to be signed into law by the President.

The FY20 Appropriations Act has been signed into law and federal agencies are busy announcing the next rounds of competitions for federal grants.

Federal funds are commonly passed through state agencies in North Carolina before being awarded to local governments, which can make the original funding source less obvious. Before proceeding with a procurement, local governments should verify whether an award originates from a federal source. This determination affects compliance obligations, including procurement standards, reporting, and audit requirements.

When a construction or repair contract over $300,000 involves a building, the procurement and contract are subject to additional requirements under N.C.G.S. 143-128. Therefore, this question must be answered to determine whether the additional statutory requirements apply to this procurement scenario.

The micro-purchase threshold is a federal procurement threshold under which competitive procurement is not required. The default micro-purchase threshold is $15,000, but local governments may increase the micro-purchase threshold up to $50,000. An explanation of increasing the micro-purchase threshold and a template for the required annual self-certification is available here.