Finding Text
2023-002 Procurement
U.S. DEPARTMENT OF EDUCATION
passed through the Louisiana Department of Education
84.027A, 84.173A Special Education Cluster
2022-2023 Award Year
Grant No. 28-22-2C-39
Criteria: The Uniform Guidance federal regulations (200.320) require, among other things, that procedure for small purchases of goods and services in an amount between $10,000 to $250,000 follow the small purchase procedures and obtain an adequate number of prices/quotes.
The Uniform Guidance federal regulations require when a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.955, is not suspended or debarred or otherwise excluded from participating in covered transactions. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS), (2) collecting certification from entity, (3) adding a clause or condition within the contract with the entity.
In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal award entity must contain provisions that are outlined in Appendix II to Part 200, namely:
A.) All contracts > $10,000 must address termination for cause and convenience by the nonfederal entity including the manner by which it will be affected and the basis for settlement.
B.) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b ), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "'Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, '"Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor."
C.) Debarment and Suspension (Executive Orders 12549 and 12689)-A contract award (see 2 CFR 180.220) must not be made to parties listed on the government wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the 0MB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), "Debarment and Suspension." The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.
Condition: While testing compliance with the federal procurement regulations, 3 vendors were identified with expenditures greater than $10,000 and less than $250,000 and testing was performed relating to the documentation to support the procurement process. Of the 3 vendors, 1 provided professional services and 2 provided equipment and materials and supplies during the year ended June 30, 2023. Compliance testing focused on the proper renewing and awarding of the contracts to determine compliance with the procurement regulations. The 3 contracts totaled $62,620. There was no evidence provided to demonstrate that quotes and prices were obtained for 1 of the 3 vendors or providers as required by Federal procurement regulations. Also, no evidence was provided to demonstrate that 3 of the 3 vendors were appropriately checked for suspension and debarment. Lastly, provisions of Appendix II of the Uniform Guidance were not included in 3 of the 3 contracts with federal dollars.
Cause: Personnel administering the grants and those in the School Board purchasing department did not execute and enforce the revised purchasing policy containing the Uniform Guidance requirements.
Effect: The School Board is not in compliance with the requirements of the Uniform Guidance Procurement regulations with respect to these purchases.
Questioned Costs: None.
Recommendation: We recommend for the School Board to more fully implement and follow its revised policies and procedures for purchases made with federal awards so that these required federal procurement regulations are followed. We recommend that the School Board include Appendix II to Part II Summary as applicable in their future contracts.
Repeat Finding: No.