Finding Text
2024-007: Federal Transit Cluster – AL# 20.507, Procurement – Finding, Non-material Non-compliance
Condition
As award recipients of Federal Transit Administration (FTA) funds, the Company is required to include certain clauses in contracts funded by FTA funds. We noted that the Company did not include the required “prohibition on certain telecommunications and video surveillance services or equipment” clause and the “notification of legal matters” clause as required clauses in their procurement manual and did not contain these clauses in one contract tested.
Criteria
The FTA mandates that contracts funded with FTA awards must contain certain clauses related to prohibited vendors
under the Code of Federal Regulations section 200.216 and requires contractors to notify the Company and the FTA of any current legal matters.
Cause
Lack of compliance with FTA contract regulations.
Effect
Contracts do not meet FTA contract regulations and are non-compliant.
Recommendation
We recommend that the Company incorporate these required FTA clauses in their procurement manual and their standard contracts to properly incorporate in any future FTA funded contracts.
View of Responsible Officials
Missing FTA clauses will be addressed via revisions/updates to all of GRTC’s solicitation and contract templates. As
templates can often be edited by mistake, another tool to proof contracts is the “FTA Clause Matrix 2023 Applicability of Third Party Contract Provisions”. The current version of this matrix includes provision from 2 CFR 200, Master Agreement 30 (FY 23) and Circular 4220.1F. Procurement received this matrix during an NTI Procurement 101 training course December 2023. Referencing this matrix has been added as a step in project checklists.