Third Party Contracting Guidance
Published Date: 1/16/2025
Notice
Summary
The Federal Transit Administration just dropped an updated guide for third-party contracts, replacing the old one with fresh rules and tips based on new laws. If you work with FTA funds or contracts, this affects you and kicks in on February 18, 2025. It’s designed to make managing contracts smoother and clearer, with no surprise costs but better clarity on what’s expected.
Analyzed Economic Effects
8 provisions identified: 3 benefits, 3 costs, 2 mixed.
Updated FTA contracting rules take effect
The Federal Transit Administration published a new Third-Party Contracting Guidance Circular (C 4220.1G) that replaces C 4220.1F. The new circular becomes applicable on February 18, 2025 and incorporates recent statutory and regulatory changes including provisions from the Infrastructure Investment and Jobs Act and updates to 2 CFR and USDOT rules.
Micro-purchase threshold: $10,000 baseline; up to $50,000 by self-certification
The Federal micro-purchase threshold remains $10,000, but as of October 1, 2024 recipients may self-certify a higher micro-purchase threshold up to $50,000 in certain instances. The Circular discusses how recipients can document and apply that self-certification (see Chapter VI, Section 4).
Security for rolling stock tied to advance/progress payments
FTA affirms that it requires security for rolling stock procurements only when advance or progress payments are used. The Circular also notes recipients may require security in excess of FTA minimums and that recipients retain discretion on bonding and security terms.
SAM.gov registration not required to bid
The Circular clarifies that contractors are not required to be registered in SAM.gov to do business with FTA recipients. FTA also says checking SAM is strongly recommended but is only one of several methods recipients may use to verify exclusion (suspension/debarment) status.
Reverse auctions limited to at-or-below SAT purchases
FTA declined to expand the use of reverse auctions above the Simplified Acquisition Threshold (SAT). The Circular notes that sealed bidding is the required method for procurements above the SAT under 2 CFR 200.320(b)(1).
Geographic preference prohibition removed
The Circular reflects that the prohibition on geographic preferences in 2 CFR 200.319 has been removed. FTA explains current status of geographic preferences across procurement types and how recipients should read statutes and regulations together when considering geographic preferences.
DBE program rules and goals remain governed elsewhere
FTA declined to change DBE program requirements in the Circular and directs readers to 49 CFR part 26 and 2 CFR 200.321(b)(3) for specifics. The Circular notes recipients set their own DBE percentage goals based on local DBE availability, and FTA will separately update flow-down clause guidance on its website.
Force account limited to recipient's own workforce
FTA declined to expand the definition of Force Account to include contractor-performed activities. The Circular maintains that 'force account' work refers specifically to the recipient's own non-contracted workforce.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-17668, Self-Regulatory Organizations; MX2 LLC; Notice of Filing and Immediate Effectiveness of a Proposal To Amend Rule 20.6 (Nullification and Adjustment of Options Transactions Including Obvious Errors) Regarding the Roster Requirements for the Obvious Error Panel
MX2 LLC is changing its rules to stop requiring a minimum number of people on the Obvious Error Panel, which reviews and fixes obvious mistakes in options trades. This update affects traders and the Exchange by making the panel setup more flexible and should speed up error handling. The change took effect right away on August 24, 2026, with no extra costs involved.
2026-17694, Notice of Final Federal Agency Actions on Proposed Transportation Project in State Florida
The FHWA, on behalf of the State Department of Transportation (FDOT), is issuing this notice to announce actions taken by FDOT and other Federal agencies that are final agency actions. These actions relate to the proposed highway project known as the State Road (S.R.) 524 from Friday Road (south) to Industry Road (Financial Project Identification 437983-1), which will widen the existing two-lane roadway to a four-lane divided urban roadway. Roundabouts are proposed at the S.R. 524 intersections of Cox Road and London Boulevard, and shared use paths are proposed on both sides of S.R. 524. Additionally, the S.R. 524 interchange at Interstate 95 will be reconfigured to a diverging diamond interchange.
2026-17666, Self-Regulatory Organizations; CME Securities Clearing Inc.; Notice of Filing of Proposed Rule Change To Adopt Standards for Establishing Cross-Margin Arrangements and Adopt a Cross-Margin Arrangement With Chicago Mercantile Exchange Inc.
2026-17665, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Options Regulatory Fee (“ORF”)
2026-17654, Notice of Request To Release Airport Property
The FAA proposes to rule and invites public comment on the release and sale of eleven parcels of land at the Liberal Mid-America Regional Airport (LBL), Liberal, Kansas, under the provisions of 49 U.S.C. 47107(h)(2).
2026-17765, Information Collection Being Reviewed by the Federal Communications Commission
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act of 1995 (PRA), the Federal Communications Commission (FCC or Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collections. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
Previous / Next Documents
Previous: 2025-00991, Non-Malleable Cast Iron Pipe Fittings From the People's Republic of China: Continuation of Antidumping Duty Order
The U.S. is keeping extra taxes on non-malleable cast iron pipe fittings from China because removing them could hurt American businesses and let unfair pricing continue. This decision affects importers and manufacturers and started on January 16, 2025. So, if you deal with these pipe fittings, expect the current rules and costs to stay in place for now.
Next: 2025-00993, Information Collection; Transfer Order-Surplus Personal Property and Continuation Sheet, Standard Form (SF) 123
The government wants to keep using the Transfer Order form (SF 123) that helps track extra stuff from federal agencies being passed on to state agencies. They’re asking for your thoughts by March 17, 2025, to make sure the form still works well and isn’t a hassle. This keeps the process smooth for everyone handling surplus property, with no new costs or big changes coming.