Issue: The Organization split the HVAC project into two phases, avoiding the need for sealed bids, which violates procurement policies.
Impact: Not adhering to these policies increases the risk of overpaying for goods and services.
Next Steps: Ensure compliance with procurement policies to prevent similar issues in the future.
Finding Text
Criteria: The Organization should follow their policies related to procurement.
Condition: During our testing, we found that the Organization did not follow established
policies by splitting a project into two phases to refrain from obtaining sealed bids
for the Organization’s HVAC project.
Cause: Undetermined.
Effect: The Organization did not follow their policy for procurement which then allows for
the possibility of overpaying for the goods and services provided.
Recommendation: We recommend that the Organization follows their policies related to procurement.