2024-002
Finding Subject: COVID 19: Coronavirus State and Local Fiscal Recovery Funds - IFA Grant - White Ditch– Procurement
and Suspension and Debarment
Contact Person Responsible for Corrective Action: Mary Lynn Wall
Contact Phone Number and Email Address: 219-873-1404 mlwall@emichigancity.com
Vie...
2024-002
Finding Subject: COVID 19: Coronavirus State and Local Fiscal Recovery Funds - IFA Grant - White Ditch– Procurement
and Suspension and Debarment
Contact Person Responsible for Corrective Action: Mary Lynn Wall
Contact Phone Number and Email Address: 219-873-1404 mlwall@emichigancity.com
Views of Responsible Officials:
We concur with the finding
Procurement
Federal regulaons allow for informal procurement methods when the value of the procurement for property or
services does not exceed the simplified acquision threshold, which is customarily set at $250,000. However,
Indiana Code 5-22-8 has a more restricve threshold of $150,000 or less for when small purchase procedures
may be used. This informal process allows for methods other than the formal bid process. Micro-purchases are
typically for those purchases $10,000 or under, and small purchase procedures are for those purchases above
the micro-purchase threshold, but below the simplified acquision threshold. Micro-purchases may be awarded
without solicing compeve price rate quotaons. If small purchase procedures are used, then price or rate
quotaons must be obtained from an adequate number of qualified sources.
Description of Corrective Action Plan:
All purchases need to be made in accordance with the Sanitary District of Michigan City Purchasing Policy. All
contracts will be supported by a written and signed contract document per Section 9.0 of the Sanitary District of
Michigan City Purchasing Policy. Suspension and Debarment
2 CFR 200.303 states in part:
"The non-Federal entity must:
(a) Establish and maintain effective internal control over Federal award that provides reasonable assurance
that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations,
and the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of
the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO)...."
2 CFR 200.320 states in part:
"The non-Federal entity must have and use documented procurement procedures, consistent with the
standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement
used for the acquisition of property or services required under a Federal award or sub-award.
(a) Informal procurement methods. When the value of the procurement for property or services under a
Federal award does not exceed the simplified acquisition threshold (SAT), as defined in § 200.1, or a lower
threshold established by a non-Federal entity, formal procurement methods are not required. The non-
Federal entity may use informal procurement methods to expedite the completion of its transactions and
minimize the associated administrative burden and cost. The informal methods used for procurement of
property or services at or below the SAT include: . . .
(b) Formal Procurement Methods. When the value of the procurement for property or services under a Federal
financial assistance award exceeds the SAT, or a lower threshold established by a non-Federal entity,
formal procurement methods are required. Formal procurement methods require following documented
procedures. Formal procurement methods also require public advertising unless a non-competitive
procurement can be used in accordance with § 200.319 or paragraph (c) of this section. The following
formal methods of procurement are used for procurement of property or services above the simplified
acquisition threshold or a value below the simplified acquisition threshold the non-Federal entity determines
to be appropriate: . . .
(1) Sealed bids. A procurement method in which bids are publicly solicited and a firm fixed-price
contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all
the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bids
method is the preferred method for procuring construction, if the conditions. . . .
(2) Proposals. A procurement method in which either a fixed price or cost-reimbursement type contract
is awarded. Proposals are generally used when conditions are not appropriate for the use of sealed
bids. . . ."
31 CFR 19.300 states:
"When you enter into a covered transaction with another person at the next lower tier, you must verify that
the person with whom you do business is not excluded or disqualified. You do this by: (a) Checking the EPLS; or
(b) Collecting a certification from that person if allowed by this rule; or
(c) Adding a clause or condition to the covered transaction with that person."
Description of Corrective Action Plan
For all federally funded contracts exceeding $25,000, the Vendor will submit a statement indicating they were not
suspended or debarred. For purchases not requiring a contract, the City Controller’s office will check the
Excluded Parties List System prior to payment to the vendor.
Anticipated Completion Date: 08/06/2025