CONDITION: The School District of the City of Monessen contracted with a third-party vendor (TRANE)
for the performance of a construction project at the District. The contract with the third-party vendor, which
was procured through a cooperative purchasing group, exceeded the threshold for competiti...
CONDITION: The School District of the City of Monessen contracted with a third-party vendor (TRANE)
for the performance of a construction project at the District. The contract with the third-party vendor, which
was procured through a cooperative purchasing group, exceeded the threshold for competitive
procurement. The District was unable to provide documentation to verify that the third-party procurement
contract was competitively procured, such as a bid evaluation and public solicitation. This is a repeat
finding from the 2021-2022 fiscal year – Finding 2022-001. In addition, the District did not conduct a cost
or price analysis for this procurement, which was in excess of the Simplified Acquisition Threshold of
$250,000.
CRITERIA: 24 Pa. Statutes 751 of the Public School Code and Section 2 CFR 200.318(i) of the Uniform
Guidance prescribes the bidding requirements for equipment, supplies, and work of any nature made by
a school district whereby the cost exceeds certain dollar thresholds as adjusted annually for an inflation
index. The construction project exceeded the simplified acquisition threshold of $250,000. As specified
in 2 CFR 200. 318(i) of the Uniform Guidance, the District must maintain records sufficient to detail the
history of procurement. These records will include, but are not necessarily limited to, the following:
rationale for the method of procurement, selection of contract type, contractor selection or rejection, and
the basis for the contract price.CRITERIA (Continued): In addition, Section 2 CFR 200.324(a) of the Uniform Guidance requires the performance of a cost or price analysis in connection with every procurement in excess of the Simplified Acquisition Threshold.
MANAGEMENT’S CORRECTIVE ACTION PLAN: Management will review and update as necessary, it’s current procurement policies and procedures to ensure compliance with all applicable sections of the Uniform Guidance, in specifically, Section 2 CFR 200.318(i) of the Uniform Guidance. The timeframe for completion of this process will commence immediately with an anticipated completion date during the 2024-2025 fiscal year and will continue on an ongoing basis as required by new policy directives from oversight agencies. All future procurements will involve a collaboration between the District’s business office and federal programs department to ensure compliance with the District’s updated procurement policies.