EDGAR

Frequently Asked Questions

  1. What is EDGAR?
  2. Does DIR follow the new EDGAR regulations?
  3. Do DIR vendors comply with new EDGAR regulations?
  4. Does EDGAR allow for cooperative agreements?
  5. How do DIR customers verify that DIR Cooperative Contract Vendors complied with the most restrictive of the state or federal procurement rules?
  6. Which procurement rules are the most restrictive?
  7. What is the independent estimate requirement?
  8. What is the cost or price analysis requirement?
  9. When does DIR conduct the cost or price analysis?
  10. What is a cost analysis?
  11. What is a price analysis?
  12. Does the cost or price analysis requirement apply to DIR customers that use federal funds at or above 150K?


What is EDGAR?

The Education Department of General Administrative Regulations (EDGAR) are the federal regulations that govern all federal grants awarded by the U.S. Department of Education on or after December 26, 2014.

Does DIR follow the new EDGAR regulations?

DIR uses an open market competitive procurement process to award contracts as required by Texas Government Code 2054 and 2157, and believes that this process satisfies EDGAR regulations. Purchasing entities may make further inquiry if they have questions regarding specific transactions.

Do DIR vendors comply with new EDGAR regulations?

DIR intends to include EDGAR certification affirmation forms for future contracts, and vendors with existing contracts will receive EDGAR affirmation forms for inclusion as part of their current DIR Cooperative Contract. DIR Cooperative Contract Vendors are required to retain all records related to their DIR contract, for a period of seven years and therefore comply with EDGAR record retention requirements at the time of the contract.[1]

Does EDGAR allow for cooperative agreements?

Yes, EDGAR encourages the use of cooperative agreements for procurement or use of common or share goods and services in order to foster greater economy and efficiency.[2]

How do DIR customers verify that DIR Cooperative Contract Vendors complied with the most restrictive of the state or federal procurement rules?

DIR maintains records such as the rationale for the method of procurement, the selection of contract type, the recommendation for negotiation, evaluation, and negotiation documents to support the selection or rejection of a vendor as well as the benchmarking and cost analysis which supports the basis for the contract price.[3] DIR customers may use these records to verify DIR’s compliance with the most restrictive federal or state procurement rules. Documents related to the purchase history, evaluation and cost or price analysis are available upon request by emailing the DIR contract manager associated with the specific contract or by emailing EDGAR@dir.texas.gov.

Which procurement rules are the most restrictive?

The most restrictive rules vary according to the contract amounts as follows:

  • Micro-purchases below $3,000
  • Small purchases beneonate $3,001 and $49,999 – EDGAR
  • Purchases between $50,000 and 149,000 – FASRG
  • Purchases at or above $150,000 – EDGAR [4]

DIR competitively procures each contract awarded as well as conducts pricing analysis as each contract is established based on the vendor’s top selling list and then at a minimum of each renewal period based on the top selling items sold from the related DIR contract.

What is the independent estimate requirement?

DIR must make an independent estimate of the value of goods or services in the current market before receiving bids or proposals.[5] The independent estimate functions as a benchmark for evaluating the reasonableness of future bids and proposals and ensures that due diligence is completed to determine a fair and reasonable price range for goods and services before procurement commences.

What is the cost or price analysis requirement?

For procurement actions involving federal funds at or above $150,000, the new EDGAR regulations require DIR to conduct 1) an independent estimate of the value of goods and services before receiving bids or proposals; and 2) a cost or price analysis before awarding a contract. While EDGAR only requires an independent estimate/cost or price analysis for contracts at or above $150,000, DIR performs a pricing analysis for every contract awarded[6]

When does DIR conduct the cost or price analysis?

For procurement actions involving federal funds at or above $150,000, the new EDGAR regulations require DIR to conduct 1) an independent estimate of the value of goods and services before receiving bids or proposals; and 2) a cost or price analysis before awarding a contract. While EDGAR only requires an independent estimate/cost or price analysis for contracts at or above $150,000, DIR performs a pricing analysis for every contract awarded[7]

What is a cost analysis?

A cost analysis involves evaluating the separate cost elements such as labor and materials that make up the total price (including profit), to determine whether the costs are allowable, allocable, and ultimately, reasonable in accordance with federal cost principles. [8]

What is a price analysis?

A price analysis involves evaluation of the total price without analyzing separate cost elements to determine whether the lump sum is fair and reasonable based on current market value or comparable products or services. [9]

Does the cost or price analysis requirement apply to DIR customers that use federal funds at or above 150K?

Yes. For contracts at or above $150,000 of federal funds, DIR customers must verify that DIR followed EDGAR procurement rules, including the cost or price analysis requirement. According to the Texas Education Agency, upon verification, the customer may purchase goods or services from DIR vendors directly, “without any additional procurement activities or documentation.”[10].
DIR recommends that when using federal funds, at or above $150,000 for DIR contracts that customers conduct their own price or cost analysis before issuing a purchase order or entering into a contract with DIR vendors in order to comply with EDGAR.

[1] 2 C.F.R. § 200.333.

[2] 2.C.F.R. § 200.318(e).

[3] 2 C.F.R. § 200.318(i).

[4] See Texas Education Agency: March 2, 2015, training materials (PDF)

[5] 2 C.F.R. § 200.323 (a).

[6] 2 C.F.R. § 200.323

[7] 2 C.F.R. § 200.323

[8] See Texas Education Agency: March 2, 2015, training materials (PDF); see also 2 C.F.R. Part 200, Subpart E – Cost Principles; U.S. Dep’t of Housing and Urban Development; Quick Guide to Cost and Price Analysis for HUD Grantees and Funding Recipients (July 6, 2015)

[9] U.S. Dep’t of Housing and Urban Development: Quick to Cost and Price Analysis fur HUD Grantees and Funding Recipients; Texas Education Agency; March 2, 2015 training materials (PDF)

[10] Texas Education Agency: March 2, 2015, training materials (PDF)