---
kind: "section"
citation: "45 C.F.R. § 1631.7"
title: "45"
number: "1631.7"
heading: "Procurement policies and procedures."
url: "https://uscodex.org/cfr/45/1631.7"
---

# §1631.7. Procurement policies and procedures.


Recipients must have written procurement policies and procedures. These policies must:

- (a) Identify competition thresholds that establish the basis (for example, price, risk level, or type of purchase) for the level of competition required at each threshold (for example, certification that a purchase reflects the best value to the recipient; a price comparison for alternatives that the recipient considered; or requests for information, quotes, or proposals);
- (b) Establish the grounds for non-competitive purchases;
- (c) **Establish the level of documentation necessary to justify procurements.** The level of documentation needed may be proportional to the nature of the purchase or tied to competition thresholds;
- (d) Establish internal controls that, at a minimum, provide for segregation of duties in the procurement process, identify which employees, officers, or directors who have authority to make purchases for the recipient, and identify procedures for approving purchases;
- (e) Establish procedures to ensure quality and cost control in purchasing, including procedures for selecting sources, fair and objective criteria for selecting sources; and
- (f) **Establish procedures for identifying and preventing conflicts of interest in the purchasing process.**

## Notes

### Authority

Authority: 42 U.S.C. 2996g(e).

### Source

Source: 82 FR 37341, Aug. 10, 2017, unless otherwise noted.