Understanding 2 CFR 200 Uniform Guidance: What Disaster Procurement Really Requires

When disaster strikes, whether it’s a hurricane, flood, or wildfire, public agencies often rely on federal funding to support response and recovery efforts. These funds come with strict rules, especially regarding procurement. For many local governments and agencies, navigating the layers of federal, state, and local procurement regulations can be complex. Missteps, often caused by common misunderstandings, can result in delays, disallowed costs, or even repayment of funds.

To make sense of it all, especially here in Florida, it’s important to start with the foundation: 2 CFR Part 200 Uniform Guidance. This regulation outlines how federal funds must be managed, including how goods and services are procured during and after disasters.

What Is 2 CFR 200 Uniform Guidance?

The Uniform Guidance is a federal regulation that provides consistent administrative, financial, and audit requirements for non-federal entities receiving federal grant funds. This includes cities, counties, school districts, state agencies, and nonprofits, whether they receive funds directly from the federal government or as a subrecipient through the State of Florida.

The guidance is structured into six sections:

· Subpart A – Acronyms and Definitions Establishes common terminology used throughout the regulation.

· Subpart B – General Provisions Explains the purpose, applicability, and scope of the Uniform Guidance.

· Subpart C – Pre-Federal Award Requirements Covers requirements such as eligibility and risk assessments that must be addressed before funding is awarded.

· Subpart D – Post-Federal Award Requirements Includes detailed guidance on financial management, procurement standards, contract monitoring, and more.

· Subpart E – Cost Principles Describes which costs are allowable, focusing on reasonableness, necessity, and connection to the award.

· Subpart F – Audit Requirements Specifies audit thresholds and expectations for accountability.

How Uniform Guidance Applies During Disasters

One of the most important things to understand is that Uniform Guidance applies to all federal disaster assistance, including FEMA Public Assistance grants. It doesn’t matter whether a local government receives funds directly or through the state, compliance with 2 CFR 200 is required.

FEMA disaster assistance is not exempt from procurement rules. While the urgency of emergencies can allow for some temporary flexibility (such as noncompetitive procurement in exigent circumstances), federal standards must still be followed as closely as possible. Documentation is required to justify any deviations, and entities are expected to return to compliant procurement practices as soon as practicable.

Key provisions related to procurement include:

· §200.317–§200.327 – General procurement standards

· §200.318 – Written procurement procedures

· §200.320 – Procurement methods and thresholds

Federal Rules vs. State and Local Rules

In Florida, procurement is also governed by state laws, such as Chapter 287 of the Florida Statutes, and additional local ordinances. When federal funding is involved, however, federal procurement rules generally take precedence. If there’s a conflict between requirements, the most restrictive rule should be followed.

For example, while Florida may allow piggybacking on another agency’s contract, FEMA may reject reimbursement if the original contract wasn’t procured in accordance with federal standards. This makes it critical for procurement teams to evaluate both sets of rules before making purchases tied to federal grants.

Documentation Is Key

Strong documentation is one of the most important parts of compliant disaster procurement. Even when time is limited, agencies must keep records that justify procurement decisions and demonstrate adherence to federal requirements. Missing documentation is one of the most common reasons FEMA denies reimbursement after the fact.

Critical documentation includes:

· Procurement procedures and selection criteria

· Solicitation and bid documents

· Justification for noncompetitive procurement (if applicable)

· Contracts that include all required federal clauses (see 2 CFR Part 200, Appendix II)

· Cost or price analysis

Monitoring and Oversight

Compliance doesn’t end once the contract is signed. Agencies must also monitor contractor performance and maintain full records throughout the grant lifecycle. Post-award monitoring helps reduce risk and prepares agencies for audits, which are common after federally declared disasters.

In Florida, the Florida Division of Emergency Management (FDEM) plays an active role in oversight as the pass-through entity for FEMA Public Assistance.

FDEM may issue additional guidance and conduct their own reviews, meaning that local governments must balance federal, state, and local expectations.

Key Procurement Tips for Disaster Recovery

1. Follow federally approved procurement methods, especially for large-dollar or competitive purchases.

2. Understand and apply both federal and state/local procurement rules, the most restrictive requirement usually prevails.

3. Include all contract provisions required by 2 CFR Part 200, Appendix II.

4. Document every step of the procurement process, especially in emergencies.

5. Engage legal and grants management staff early in the process, not after the fact.

6. Provide regular training to staff responsible for procurement and grants compliance.

Final Thought

In disaster recovery, fast action is critical, but so is compliance. The rules under 2 CFR 200 aren’t optional, even when circumstances are challenging. By fully understanding how federal procurement regulations apply during emergencies, and how they intersect with Florida’s state and local rules, public agencies can move quickly and responsibly, protecting both their communities and their funding. Contact us to learn more 2 CFR 200 Uniform Guidance to receive assistance with disaster policy reviews, or for assistance with the creation of policies that align with Uniform Guidance.