What are the two main procurement methods under federal rules for grants?

• A. Micro-purchases (universal threshold) and competitive bidding
• B. Sole-source procurement only
• C. Micro-purchases and sole-source when justified
• D. Only competitive bidding

Answer: (A)

In federal grant procurement, two main paths cover most purchases: micro-purchases up to a universal threshold, and competitive procurement for larger needs. Micro-purchases are designed to be simple and fast, requiring minimal formalities and competition, which is suitable for routine, small-dollar buys. When the purchase amount goes beyond that threshold, the rule is to seek competition to the greatest extent practicable to ensure fair pricing and good value, typically through competitive bidding or competitive proposals. Sole-source procurement exists, but only with proper justification and approvals in specific circumstances, not as the default approach. So the two main methods are micro-purchases and competitive procurement.