EDGAR Compliance

The Region 6 Education Service Center (ESC6) is a Texas Education Service Center which operates EPIC6, a purchasing cooperative and department of the ESC6. The ESC6 and EPIC6 has made every effort to comply with the most restrictive requirements of 2 CFR 200, identified for educational purposes as the Education Department General Administrative Regulations (EDGAR). EPIC6 certifies that it procures all awarded agreements/contracts pursuant to § 44.031 of the Texas Education Code, or Texas Government Code § 2269, as applicable, the most restrictive procurement method, and performs the most restrictive procurement method required by law and regulation, including all of the necessary steps outlined in 2 CFR 200, except the Price or Cost Analysis for purchases of $250,000 and greater.

EPIC6 Information on Member Entities Purchasing Goods and Services using Federal Funds

EPIC6 is often asked if our agreements/contracts are compliant with the Code of Federal Regulations procurement requirements (2 CFR Part 200). These regulations are created by the federal government to regulate the procurement processes of federal agencies, the pass-through state agencies, and the individual local government entities receiving federal funds through the agencies responsible for the distribution of those funds for the benefit of the end-user entities. The funds are commonly granted to the local entities by the Cares Act and ESSER, US Dept. of Education, Housing and Urban Development, FEMA, US Dept. or Agriculture (school child nutrition) and other federal agencies. The funds are typically sent to the state agencies that act as pass-through agencies to distribute the funds to local governmental entities such as school districts (EDGAR), cities, counties, etc. and monitor the use of the funds for compliance with the federal regulations. When a school, city, county or other entity purchases goods and services with the respective funds, there are steps, certifications, contract clauses and other accountability issues that go into the proper use of the funds. EPIC6 can provide documentation of the awarded vendor’s responses to our solicitations that will provide evidence of the scope of the vendor’s agreement with the federal requirements included in the EPIC6 solicitation.

Although EPIC6 follows extensive practices to ensure federal compliance, EPIC6 will not certify that any EPIC6 vendor Agreement is fully compliant for a specific purchase by a EPIC6 Member entity. It is always up to the EPIC6 Member entity to ensure that EPIC6 practices meet their needs for any procurement. A few of the reasons for our position are listed below.

Multiple Regulations and Rules

The various federal agencies that grant and distribute funds to entities eligible to use EPIC6 vendor agreements all interpret the 2 CFR Part 200 differently and the federal agencies distributing the funds have the authority to add additional, more restrictive requirements, as they deem appropriate. Also, the pass-through state agencies that distribute and monitor the use of the funds may add additional, more restrictive rules, on the funds use and the processes that the end-user entity must follow when expending those funds. Then, the local EPIC6 Member entity may add their own additional more restrictive procurement rules or policies. Thus the rules for use quite literally, can be different for each end-user entity.

Dollar threshold of the purchases

The next criterion for the purchases includes whether or not the purchase is “allowable” under the specific federal funds grant. Also, depending on the dollar amount of the purchase, different federal requirements apply to the individual purchases.

Micro-Purchase Procedures

Typically, micro purchases are purchases under $10,000. Depending on the federal or state agency that dollar threshold may include a requirement to “aggregate” the dollar amount of the purchases for the fiscal year of the entity and others do not aggregate those purchases and allow all purchases under $10,000 to be made according to the regulations so long as the purchases are not divided into small parts for the purpose of not complying with the larger threshold amounts. Purchasing entities must distribute micro-purchases with multiple vendors throughout the year, if multiple vendors are available for the desired goods and services.

Small Purchase Procedures

Small purchase procedures are for amounts from $10,000 to a maximum of $250,000 or less if the pass through agency or local entity has a more restrictive rules or regulations. Example: Texas requires formal procurement at the $50,000 threshold. Typically, the end user, EPIC6 Member entity can get three quotes from qualified suppliers for Small Purchases, as defined. They should seek out disadvantaged type businesses for at least one of the quotes, but local or state regulations may require more.

Formal Purchase Procedures

The CFR formal procurement threshold is $250,000 and it requires a very formal solicitation process with various additional steps required to comply with the CFR. This method requires cost or price analysis before and after the purchase by the EPIC6 Member entity and other formal processes and permitted types of purchasing models in 2 CFR Part 200. The cost/price analysis is based on the specific individual purchase by the EPIC6 Member entity and cannot be done by EPIC6 because of the multiple award and discount off catalog or fixed price contracts that make up EPIC6 contracts.

Please consult with your legal counsel if any questions regarding EPIC6 positions or its compliance with 2 CFR part 200, more commonly known as EDGAR.

EPIC6 cannot provide legal guidance to a purchasing entity. 

It is always the responsibility of the individual Member entity considering making purchases through an EPIC6 vendor agreement/contract to determine whether a EPIC6 cooperative procurement is appropriate when purchasing with federal or other funds of any type or source.