Finding Number: 2024-001
Finding Type: Federal award finding
Federal Assistance Listing No.: 15.685
Program Name: National Fish Passage
Federal Agency: U.S. Department of the Interior
Federal Grant Number: F24C01411-00
Federal Award Year: 2024
Pass-through entity: Rogue River Watershed Council
Grant Number: 205
Control Deficiency Type: Significant deficiency in internal controls and instances of non-compliance
Instances of Noncompliance: Yes
Compliance Requirement: Procurement, suspension and debarment
Questioned Costs: None
Repeat Finding: No
Criteria: A non-federal organization must follow its own documented procurement procedures, provided they comply with applicable state and local laws and align with the federal standards outlined in 2 CFR 200.318–200.327 (“Uniform Guidance”). Specifically, 2 CFR 200.318(i) requires entities to maintain records sufficient to detail the history of the procurement, including but not limited to the rationale for the procurement method chosen, the basis for selecting or rejecting contractors, and the justification for the contract price. In addition, all procurement transactions must be conducted in a manner providing full and open competition.
Furthermore, federal requirements prohibit grant recipients from contracting with, or purchasing from, contractors who are suspended and debarred from doing business with the federal government. Whenever the organization enters into contracts or purchases goods or services with federal funds that it expects to equal or exceed $25,000, it must verify that the contractor or vendor has not been suspended, debarred or otherwise excluded.
Finally, the organization must ensure that all federal programs comply with Section 70914 of the Build America, Buy America (BABA) Act for infrastructure projects.
Condition: The organization has enacted a written procurement policy and management believed that it met all the standards required under 2 CFR 200.318 through 200.326. However, the policy failed to include some of the most stringent requirements included in the Uniform Guidance, and the organization did not comply with all the documentation requirements laid out in its procurement policy. More specifically, the organization did not maintain written thorough documentation of the procurement process as stated in 2 CFR 200.318(i), nor publicized the request for proposal in accordance with 2 CFR 200.319. Finally, the contract funded under the major program did not incorporate the mandatory BABA Act compliance language.
Cause: As this was the entity’s first federal audit, WaterWatch was unaware of some procurement requirements outlined in the Uniform Guidance that needed to be incorporated into its procurement policies and procedures. Furthermore, the entity was new to the federal procurement environment. Regarding suspension and debarment, and the BABA Act, the organization was generally aware of these requirements and believed it had achieved compliance. However, WaterWatch was not aware of the need to perform documented formal verification regarding debarment beyond regularly sharing information in their existing networks of restoration agency and NGOs which rely on the same pool of experience contractors. Regarding BABA, WaterWatch was not aware of the specific documentation requirements. WaterWatch did not add the required contract language regarding BABA or debarment. In addition, due to the limited number of contractors performing this type of work, only four contractors responded to this particular request for proposal and only one submitted a bid. As a result, WaterWatch did not generate their comparison-based procurement process written documentation.
Effect: The organization did not comply with some of the procurement, suspension and debarment requirement as outline in the Uniform Guidance.
Audit Recommendation: We recommend that management review its current procurement policy to ensure that all procurement activities fully comply with the federal regulations, as well as establish additional procedure and oversight mechanism to ensure that procurement activities fully comply with the organization’s policies.
Management’s Response: The following corrective actions are being immediately implemented for contracts in WaterWatch’s restoration program in order to achieve compliance:
1. Language requiring all contractors to comply with the Build America, Buy America (BABA) Act is added to all new WaterWatch contracts and all current contracts via amendment.
2. Language requiring all contractors to comply with federal suspension and debarment contracting standards is added to all new WaterWatch contracts and all current contracts via amendment.
3. WaterWatch will keep formal documentation of debarment searches for all contractors.
4. WaterWatch will keep formal documentation of contractor procurement process in both Southern Oregon and Portland offices.
Finding Number: 2024-001
Finding Type: Federal award finding
Federal Assistance Listing No.: 15.685
Program Name: National Fish Passage
Federal Agency: U.S. Department of the Interior
Federal Grant Number: F24C01411-00
Federal Award Year: 2024
Pass-through entity: Rogue River Watershed Council
Grant Number: 205
Control Deficiency Type: Significant deficiency in internal controls and instances of non-compliance
Instances of Noncompliance: Yes
Compliance Requirement: Procurement, suspension and debarment
Questioned Costs: None
Repeat Finding: No
Criteria: A non-federal organization must follow its own documented procurement procedures, provided they comply with applicable state and local laws and align with the federal standards outlined in 2 CFR 200.318–200.327 (“Uniform Guidance”). Specifically, 2 CFR 200.318(i) requires entities to maintain records sufficient to detail the history of the procurement, including but not limited to the rationale for the procurement method chosen, the basis for selecting or rejecting contractors, and the justification for the contract price. In addition, all procurement transactions must be conducted in a manner providing full and open competition.
Furthermore, federal requirements prohibit grant recipients from contracting with, or purchasing from, contractors who are suspended and debarred from doing business with the federal government. Whenever the organization enters into contracts or purchases goods or services with federal funds that it expects to equal or exceed $25,000, it must verify that the contractor or vendor has not been suspended, debarred or otherwise excluded.
Finally, the organization must ensure that all federal programs comply with Section 70914 of the Build America, Buy America (BABA) Act for infrastructure projects.
Condition: The organization has enacted a written procurement policy and management believed that it met all the standards required under 2 CFR 200.318 through 200.326. However, the policy failed to include some of the most stringent requirements included in the Uniform Guidance, and the organization did not comply with all the documentation requirements laid out in its procurement policy. More specifically, the organization did not maintain written thorough documentation of the procurement process as stated in 2 CFR 200.318(i), nor publicized the request for proposal in accordance with 2 CFR 200.319. Finally, the contract funded under the major program did not incorporate the mandatory BABA Act compliance language.
Cause: As this was the entity’s first federal audit, WaterWatch was unaware of some procurement requirements outlined in the Uniform Guidance that needed to be incorporated into its procurement policies and procedures. Furthermore, the entity was new to the federal procurement environment. Regarding suspension and debarment, and the BABA Act, the organization was generally aware of these requirements and believed it had achieved compliance. However, WaterWatch was not aware of the need to perform documented formal verification regarding debarment beyond regularly sharing information in their existing networks of restoration agency and NGOs which rely on the same pool of experience contractors. Regarding BABA, WaterWatch was not aware of the specific documentation requirements. WaterWatch did not add the required contract language regarding BABA or debarment. In addition, due to the limited number of contractors performing this type of work, only four contractors responded to this particular request for proposal and only one submitted a bid. As a result, WaterWatch did not generate their comparison-based procurement process written documentation.
Effect: The organization did not comply with some of the procurement, suspension and debarment requirement as outline in the Uniform Guidance.
Audit Recommendation: We recommend that management review its current procurement policy to ensure that all procurement activities fully comply with the federal regulations, as well as establish additional procedure and oversight mechanism to ensure that procurement activities fully comply with the organization’s policies.
Management’s Response: The following corrective actions are being immediately implemented for contracts in WaterWatch’s restoration program in order to achieve compliance:
1. Language requiring all contractors to comply with the Build America, Buy America (BABA) Act is added to all new WaterWatch contracts and all current contracts via amendment.
2. Language requiring all contractors to comply with federal suspension and debarment contracting standards is added to all new WaterWatch contracts and all current contracts via amendment.
3. WaterWatch will keep formal documentation of debarment searches for all contractors.
4. WaterWatch will keep formal documentation of contractor procurement process in both Southern Oregon and Portland offices.
Finding Number: 2024-001
Finding Type: Federal award finding
Federal Assistance Listing No.: 15.685
Program Name: National Fish Passage
Federal Agency: U.S. Department of the Interior
Federal Grant Number: F24C01411-00
Federal Award Year: 2024
Pass-through entity: Rogue River Watershed Council
Grant Number: 205
Control Deficiency Type: Significant deficiency in internal controls and instances of non-compliance
Instances of Noncompliance: Yes
Compliance Requirement: Procurement, suspension and debarment
Questioned Costs: None
Repeat Finding: No
Criteria: A non-federal organization must follow its own documented procurement procedures, provided they comply with applicable state and local laws and align with the federal standards outlined in 2 CFR 200.318–200.327 (“Uniform Guidance”). Specifically, 2 CFR 200.318(i) requires entities to maintain records sufficient to detail the history of the procurement, including but not limited to the rationale for the procurement method chosen, the basis for selecting or rejecting contractors, and the justification for the contract price. In addition, all procurement transactions must be conducted in a manner providing full and open competition.
Furthermore, federal requirements prohibit grant recipients from contracting with, or purchasing from, contractors who are suspended and debarred from doing business with the federal government. Whenever the organization enters into contracts or purchases goods or services with federal funds that it expects to equal or exceed $25,000, it must verify that the contractor or vendor has not been suspended, debarred or otherwise excluded.
Finally, the organization must ensure that all federal programs comply with Section 70914 of the Build America, Buy America (BABA) Act for infrastructure projects.
Condition: The organization has enacted a written procurement policy and management believed that it met all the standards required under 2 CFR 200.318 through 200.326. However, the policy failed to include some of the most stringent requirements included in the Uniform Guidance, and the organization did not comply with all the documentation requirements laid out in its procurement policy. More specifically, the organization did not maintain written thorough documentation of the procurement process as stated in 2 CFR 200.318(i), nor publicized the request for proposal in accordance with 2 CFR 200.319. Finally, the contract funded under the major program did not incorporate the mandatory BABA Act compliance language.
Cause: As this was the entity’s first federal audit, WaterWatch was unaware of some procurement requirements outlined in the Uniform Guidance that needed to be incorporated into its procurement policies and procedures. Furthermore, the entity was new to the federal procurement environment. Regarding suspension and debarment, and the BABA Act, the organization was generally aware of these requirements and believed it had achieved compliance. However, WaterWatch was not aware of the need to perform documented formal verification regarding debarment beyond regularly sharing information in their existing networks of restoration agency and NGOs which rely on the same pool of experience contractors. Regarding BABA, WaterWatch was not aware of the specific documentation requirements. WaterWatch did not add the required contract language regarding BABA or debarment. In addition, due to the limited number of contractors performing this type of work, only four contractors responded to this particular request for proposal and only one submitted a bid. As a result, WaterWatch did not generate their comparison-based procurement process written documentation.
Effect: The organization did not comply with some of the procurement, suspension and debarment requirement as outline in the Uniform Guidance.
Audit Recommendation: We recommend that management review its current procurement policy to ensure that all procurement activities fully comply with the federal regulations, as well as establish additional procedure and oversight mechanism to ensure that procurement activities fully comply with the organization’s policies.
Management’s Response: The following corrective actions are being immediately implemented for contracts in WaterWatch’s restoration program in order to achieve compliance:
1. Language requiring all contractors to comply with the Build America, Buy America (BABA) Act is added to all new WaterWatch contracts and all current contracts via amendment.
2. Language requiring all contractors to comply with federal suspension and debarment contracting standards is added to all new WaterWatch contracts and all current contracts via amendment.
3. WaterWatch will keep formal documentation of debarment searches for all contractors.
4. WaterWatch will keep formal documentation of contractor procurement process in both Southern Oregon and Portland offices.
Finding Number: 2024-001
Finding Type: Federal award finding
Federal Assistance Listing No.: 15.685
Program Name: National Fish Passage
Federal Agency: U.S. Department of the Interior
Federal Grant Number: F24C01411-00
Federal Award Year: 2024
Pass-through entity: Rogue River Watershed Council
Grant Number: 205
Control Deficiency Type: Significant deficiency in internal controls and instances of non-compliance
Instances of Noncompliance: Yes
Compliance Requirement: Procurement, suspension and debarment
Questioned Costs: None
Repeat Finding: No
Criteria: A non-federal organization must follow its own documented procurement procedures, provided they comply with applicable state and local laws and align with the federal standards outlined in 2 CFR 200.318–200.327 (“Uniform Guidance”). Specifically, 2 CFR 200.318(i) requires entities to maintain records sufficient to detail the history of the procurement, including but not limited to the rationale for the procurement method chosen, the basis for selecting or rejecting contractors, and the justification for the contract price. In addition, all procurement transactions must be conducted in a manner providing full and open competition.
Furthermore, federal requirements prohibit grant recipients from contracting with, or purchasing from, contractors who are suspended and debarred from doing business with the federal government. Whenever the organization enters into contracts or purchases goods or services with federal funds that it expects to equal or exceed $25,000, it must verify that the contractor or vendor has not been suspended, debarred or otherwise excluded.
Finally, the organization must ensure that all federal programs comply with Section 70914 of the Build America, Buy America (BABA) Act for infrastructure projects.
Condition: The organization has enacted a written procurement policy and management believed that it met all the standards required under 2 CFR 200.318 through 200.326. However, the policy failed to include some of the most stringent requirements included in the Uniform Guidance, and the organization did not comply with all the documentation requirements laid out in its procurement policy. More specifically, the organization did not maintain written thorough documentation of the procurement process as stated in 2 CFR 200.318(i), nor publicized the request for proposal in accordance with 2 CFR 200.319. Finally, the contract funded under the major program did not incorporate the mandatory BABA Act compliance language.
Cause: As this was the entity’s first federal audit, WaterWatch was unaware of some procurement requirements outlined in the Uniform Guidance that needed to be incorporated into its procurement policies and procedures. Furthermore, the entity was new to the federal procurement environment. Regarding suspension and debarment, and the BABA Act, the organization was generally aware of these requirements and believed it had achieved compliance. However, WaterWatch was not aware of the need to perform documented formal verification regarding debarment beyond regularly sharing information in their existing networks of restoration agency and NGOs which rely on the same pool of experience contractors. Regarding BABA, WaterWatch was not aware of the specific documentation requirements. WaterWatch did not add the required contract language regarding BABA or debarment. In addition, due to the limited number of contractors performing this type of work, only four contractors responded to this particular request for proposal and only one submitted a bid. As a result, WaterWatch did not generate their comparison-based procurement process written documentation.
Effect: The organization did not comply with some of the procurement, suspension and debarment requirement as outline in the Uniform Guidance.
Audit Recommendation: We recommend that management review its current procurement policy to ensure that all procurement activities fully comply with the federal regulations, as well as establish additional procedure and oversight mechanism to ensure that procurement activities fully comply with the organization’s policies.
Management’s Response: The following corrective actions are being immediately implemented for contracts in WaterWatch’s restoration program in order to achieve compliance:
1. Language requiring all contractors to comply with the Build America, Buy America (BABA) Act is added to all new WaterWatch contracts and all current contracts via amendment.
2. Language requiring all contractors to comply with federal suspension and debarment contracting standards is added to all new WaterWatch contracts and all current contracts via amendment.
3. WaterWatch will keep formal documentation of debarment searches for all contractors.
4. WaterWatch will keep formal documentation of contractor procurement process in both Southern Oregon and Portland offices.