Finding Text
Finding # 2023-002 Procurement, Suspension and Debarment (Significant Deficiency)
Information on the Federal Programs: Assistance Listing #98.001 USAID Foreign Assistance for
Programs Overseas
Criteria or Specific Requirement: § 200.318 (i) General procurement standards, states that the
non-federal entity 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. Furthermore: §200.320 (f) Methods of procurement to be followed, states that
procurement by noncompetitive proposals is procurement through solicitation of a proposal from only
one source and may be used only when certain requirements have been met. Additionally, §200.213
Reporting a determination that a non-Federal entity is not qualified for a Federal award states that
non-federal entities are subject to the non-procurement debarment and suspension regulations
implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict
awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise
excluded from or ineligible for participation in federal assistance programs or activities. The nonfederal
entity must verify that the person with whom you intend to do business is not excluded or
disqualified, by (a) checking SAM Exclusions; (b) collecting a certification from that person; (c)
adding a clause or condition to the covered transaction with that person.
Condition: During our audit, we noted contractual relationships under the federal awards for which
evidence of procurement procedures and documentation of SAM Exclusion checks were unavailable
for our inspection. It is our understanding that some contracts were procured under noncompetitive
(sole source) justification. However, in certain instances we were unable to review documentation
(prepared at the time the contracts were executed) detailing the history and rationale of the
procurements.
Cause: The Institute's processes in place during 2023 did not provide for the formalization and
retention of procurement records and vendor screenings consistent with the expectations outlined in
2 CFR 200 and related guidance provided by USAID.
Effect or Potential Effect: Purchases of goods and services could be made above the prevailing
market rates if the prescribed procurement procedures are not adhered to. Additionally, the Institute
may have inadvertently selected noncompetitive proposals method when the circumstances did not
meet the requirements noted in § 200.320 (f) Methods of procurement to be followed, and thereby
failing to administer full and open competition as required by the regulations. Finally, the Institute
could inadvertently enter into a contractual relationship with an entity that is suspended, debarred or
otherwise included on the US Federal sanction list.
Questioned Costs: N/A
Context: Our audit sample consisted of transactions incurred by both JGI USA and JGI Tanzania.
The finding relates to a transaction incurred by both entities. Both entities have defined procurement
policies.
Identification as a Repeat Finding: N/A
Recommendation: We recommend that the Institute ensure its policy is distributed and
communicated in a formal manner to its employees, and that management properly enforce
compliance with its policy. All procurement actions should be clearly documented in writing and
maintained in the vendor or contractor files. Such documentation should include, but is not limited to;
(1) Bids (2) Bid Analysis with documentation of vendor selection and rationale (3) Minutes of
meetings of procurement committee (4) for sole source procurements, documentation of which of the
allowable sole source criteria the procurement was done under. Additionally, we recommend that the
procurement policies are enhanced to include compliance with §200.320 (f) Methods of procurement
to be followed and, §200.213 Reporting a determination that a non-Federal entity is not qualified for
a Federal award.