Audit 44975

PROCUREMENT AND SUSPENSION AND DEBARMENT Criteria ? When procuring and executing contracts for WIFIA funded projects, procurement documents must include language to ensure compliance with federal requirements. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must also verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. ?Covered transactions? include those contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. Condition ?NBC did not include in the professional service procurement and contract documents selected for testing, the language to ensure compliance with federal requirements. Other than for construction contractors, NBC does not have specific procedures in place for procurement contracts for goods and services that are subject to the suspension and debarment requirements. Cause - NBC has only established policies and procedures for construction contractors to include the language in procurement documents to ensure compliance with federal requirements and for compliance with suspension and debarment requirements. NBC was unaware that these requirements apply to all WIFIA funded contracts for goods and services. Effect - NBC did not include in the professional service procurement and contract documents selected for testing, the language to ensure compliance with federal requirements. NBC also awarded the professional service contracts selected for testing, prior to verifying that the entity was not debarred, suspended, or otherwise excluded. Questioned Costs ? None. Recommendation ? We recommend that NBC implement procedures over compliance with procurement and suspension and debarment requirements for all WIFIA funded contracts. The procedures should ensure that the language related to compliance with federal requirements is included in the procurement documents and contracts and that a process is in place to verify that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded.

PROCUREMENT AND SUSPENSION AND DEBARMENT Criteria ? When procuring and executing contracts for WIFIA funded projects, procurement documents must include language to ensure compliance with federal requirements. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must also verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. ?Covered transactions? include those contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. Condition ?NBC did not include in the professional service procurement and contract documents selected for testing, the language to ensure compliance with federal requirements. Other than for construction contractors, NBC does not have specific procedures in place for procurement contracts for goods and services that are subject to the suspension and debarment requirements. Cause - NBC has only established policies and procedures for construction contractors to include the language in procurement documents to ensure compliance with federal requirements and for compliance with suspension and debarment requirements. NBC was unaware that these requirements apply to all WIFIA funded contracts for goods and services. Effect - NBC did not include in the professional service procurement and contract documents selected for testing, the language to ensure compliance with federal requirements. NBC also awarded the professional service contracts selected for testing, prior to verifying that the entity was not debarred, suspended, or otherwise excluded. Questioned Costs ? None. Recommendation ? We recommend that NBC implement procedures over compliance with procurement and suspension and debarment requirements for all WIFIA funded contracts. The procedures should ensure that the language related to compliance with federal requirements is included in the procurement documents and contracts and that a process is in place to verify that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded.