FEMA requires that all procurement transactions are conducted in a manner providing full and open competition, and discourages noncompetitive contracts. FEMA allows for noncompetitive procurement only when the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals. The Applicant did not substantiate that the award of a contract by competitive proposals was infeasible under the circumstances. Grantees and subgrantees are required to ensure that all pre-qualified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Grantees and subgrantees may not preclude potential bidders from qualifying during the solicitation period. The Applicant precluded potential bidders from qualifying for the award when it made a single-source selection from a pre-qualified list of contractors.

The Applicant did not meet the standards of federal procurement regulations when it made a single-source selection from a pre-qualified list of contractors. In doing so, it precluded other potential bidders from qualifying for the award. The award of a contract by competitive proposals was not infeasible under the circumstances, therefore, FEMA appropriately deobligated $1,239,567.68 in funds associated with an improperly procured contract.

Title 44 Code of Federal Regulations (C.F.R.) §§ 13.36(b)(1); (c)(1); (c)(4); (d)(4)(i)(A)-(D) (2013). Public Assistance Guide, FEMA 322, at 52 (June 2007). Second Appeal Analysis, City of Pierre, FEMA-1984-DR-SD, at 11 (May 27, 2015). Second Appeal Analysis, Martinsville CUSD #C-3, FEMA-1771-DR-IL, at 4 (Jul. 19, 2016).