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(2) All procurement transactions regardless of whether negoti- ated or advertised and without regard to dollar value shall be conducted in a m~nner so as to provide maximum open and free competi- tion. The recipient should be alert to organizational conflicts of interest or noncompetitive practices among subcontractors which may restrict or eliminate competition or otherwise restrain trade. (3) The recipient shall establish procurement procedures which provide for, as a minimum, the following procedural requirements: (al Proposed procurement actions shall be reviewed by recipient officials to avoid purchasing unnecessary or duplicative items. Where appropriate, an analysis shall be made of lease and purchase alternatives to determine which would be the most economical, practical procurement. (b) Invitations for bids or requests for proposals shall be based upon a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. "Brand name or equal" description may be used as a means to define the performance or other slient requirements of a procurement, and when so used the specific features of the named brand which must be met by offerors should be Clearly specified. (c) Positive efforts shall be made by the recipients to utili4e small business and minority-owned business sources of supplies and services. Such efforts should allow these sources the maximum feasible opportunity to compete for subcontracts to be performed utilizing Federal funds. (d) The type of procuring instruments used (i.e., fixed price contracts, cost reimbursable contracts, purchase orders, incentive contracts, etc.), shall be appropriate for the particular procurement and for promoting the best interest of the cooperative agreement program involved. The "cost-plus-a-percentage-of-cost" method of contracting shall not be used. (e) Formal advertising, with adequate purChase description, sealed bids, and public openings shall be the required method of procurement unless negotiation pursuant to paragraph (f) below is necessary to accomplish sound procurement. However, procurements of $10,000 or less need not be so advertised unless otherwise required by State or local law or regulations. Where such advertised bids are obtained the awards shall be made to the responSible bidder whose bid is responsive to the invitation and is most advantageous to the recipient, price, and other factors considered. (Factors such as discounts, transportation costs, and taxes may be considered in determining the lowest bid.) Invitations for bids shall clearly set forth all requirements which the bidder must fulfill 11