Finding 1140018 (2024-002)

Capital Fund-CDFA#14.872 Finding 2024-002-Procurement Policy and Federal Regulations Not Followed-Procurement Context The authority spent a minimum of $145,992 in the audit year for air conditioning/heating services. It appears that no effort was made to obtain other quotes. Federal regulations 200.320 require price quotations be obtained from an adequate number of qualified sources for this level of expenditures. Louisiana State Bid law, R.S. 38.2212.1 requires three or more quotes be obtained. Effect The authority did not exercise due diligence to assure that the most favorable prices were obtained for these services. The authority should note in the advertisement that price is only one factor to be considered in the award. Cause In February 2018, the authority performed the necessary steps to advertise, obtain and evaluate the quotes for air conditioning/heating work. This RFP extended services for multiple years. However, for the 2023-2024 year, the time was past due for the authority to re-perform procedures to obtain other quotes for these services. Questioned Costs None Recommendation The authority’s Procurement Policy, federal and state regulations should be complied with. View of Responsible Official We will comply with the auditor’s recommendation. Criteria and Condition The Procurement Policy and federal regulations should be complied with when procuring goods and services.