Capitol Corner February 2022

Congress is still working to finalize full-year funding for the federal government by agreeing to a broad framework that will allow them to hash out details and pass a package that could reach $1.5 trillion in the coming weeks. The federal government is currently operating under a Continuing Resolution (CR) through February 18 that keeps programs at fiscal 2021 levels, but Congress is expected to pass another short-term CR through March 11 until a final deal can be reached. The goal is to pass a fiscal 2022 omnibus bill, which would increase funding for many domestic programs and unlock the spending created with passage of the Infrastructure Investment and Jobs Act (a.k.a. Bipartisan Infrastructure Law (BIL)). Many BIL programs, including new competitive grants considered “new starts” because they didn’t exist before the infrastructure law, as well as the 20 percent increase in highway formula money and 30 percent increase in transit formula dollars authorized by Congress in the BIL are not available until the fiscal 2022 spending bill passes. To learn more about all of the funding available under the BIL, including transportation, energy, water and the environment, see the Building A Better America Guidebook prepared by the White House.

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.