Finding Text
Criteria – When procuring and executing contracts for WIFIA funded projects, procurement documents and contracts must include language to ensure compliance with federal requirements. Condition – During our test of controls and compliance with procurement requirements, we noted the following:
• Eight professional service contracts and related contract amendments did not include all the applicable language to ensure compliance with federal WIFIA requirements. Specifically, language related to federal lobbying restrictions was not included in the contracts and related amendments.
• One construction contract did not include the required language to ensure compliance with federal WIFIA requirements.
• Certain construction contracts tested included an older version of the WIFIA Borrower’s Guide to Federal Requirements Appendix, which outlines the Specification Package and Bid Contract Language. Cause –
• NBC was not aware that certain language was required to be included in professional service contracts.
• NBC did not adhere to established policies and procedures.
• NBC had not updated the construction contracts to include the most current WIFIA contract language.
Effect - NBC did not include in all the contract procurement documents selected for testing the required language to ensure compliance with federal program requirements. Questioned Costs – None. Recommendation – We recommend that NBC follow established procedures for all WIFIA funded contracts to ensure compliance with procurement requirements. The procedures should ensure that the applicable language related to compliance with federal program requirements is included in the contracts and procurement documents. We also recommend that NBC confirm that the most current WIFIA guidance is utilized when preparing WIFIA funded contracts and procurement documents. Corrective Action Plan/Auditee Views –- NBC will implement procedures for all WIFIA funded contracts to ensure compliance with applicable procurement requirements. Specifically, the procedures will ensure that the applicable language related to compliance with federal program requirements is included in the contracts and procurement documents. NBC will also confirm that the most current WIFIA guidance is utilized when preparing WIFIA funded contracts and procurement documents moving forward. NBC will also amend previously executed, but still active, professional service contracts to include the required contract language. Anticipated Completion Date – March 30, 2025 Contact Person - David Bowen, Director of Construction and Engineering