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The statutory definition of procuring agency also includes any person contracting with
a defined Federal, state, or local agency. A contractor is a "procuring agency" and subject
to section 6002 when procuring designated items for work performed under a contract with a
Federal agency, or a contract with a state or local agencies where appropriated Federal funds
are used.
Because RCRA is explicit in identifying only government agencies and their
contractors as "procuring agencies," EPA concluded that private party recipients (e.g., non-
profit organizations, individuals) of Federal loans, grants, or funds under a cooperative
agreement are not procuring agencies. This is true whether the originator of the grant, loan,
or cooperative agreement is a Federal agency or a state or local agency recipient of Federal
funds. In new 247.2, EPA is including a new subparagraph (c)(2) regarding private party
recipients of Federal funds to reflect this revised interpretation of RCRA section 6002.
4. To Which Purchases Does Section 6002 Apply?
As previously noted, the following discussion is a consolidation of similar discussions
in the existing procurement guidelinesand is included for the convenience of the reader.
Purchases made as a result of a solicitation by procuring agencies for their own
general use or that of other agencies (e.g.;purchases by GSA's Federal Supply Service) are
"direct" purchases. Purchases of items as part of a contract are also "direct" purchases.
The definition of "procuring agency" makes it clear that the requirements of section
6002 also apply to indirect "purchases," i.e., purchases by a state or local agency using
appropriated Federal funds or, in some instances, its contractors. In other words, section
6002 applies to purchases of designated items meeting the $10,000 threshold made by states,
political subdivisions of states, or their con&actors.
However, the guideline does not apply to such purchases if they are unrelated to or
incidental to the Federal funding, i.e., not the direct result of the grant, loan, or funds
disbursement. For example, if an entity has a Federal grant or contract to do. research and
builds or expands a laboratory to conduct the research, the construction is incidental to the
grant or contract, as is the purchase of construction materials.
The guideline applies whenever Federal monies, including block grants, are used,
whether or not they are commingled with non-Federal funds.
5. What is the $10,000 Threshold?
As previously noted, the following discussion is a consolidation of similar discussions
in the existing procurement guidelines and is included for the convenience of the reader.

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