Finding Text
Compliance Requirement: Procurement and Suspension and Debarment, Information on the Major Federal Program: Federal agency-U.S. Department of Justice Assistance listing number: 16.543, Assistance listing name: Missing Children’s Assistance Award numbers: 15PJDP-23-GK-04261-MECP, 15PJDP-24-GK-02959-MECP Award periods: October 1, 2023-September 30, 2025, October 1, 2024-September 30, 2025 Criteria – In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.310(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extensions) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition – During our testing of the procurement, suspension and debarment compliance requirement, we identified two samples (out of a total of nine samples tested) where NCMEC did not verify that the vendors were not excluded or disqualified prior to entering into the contracts with the vendors. NCMEC’s federal procurement policy, which aligns with U.S. Government policy, requires checking SAM.gov exclusions for all new vendors. In addition, for one of the nine procurement samples tested, NCMEC renewed/extended a contract with an existing vendor without verifying that this existing vendor was not excluded or disqualified prior to executing the contract amendment, as required under §180.310(b). Cause – NCMEC did not adhere to Uniform Guidance procurement requirements and its internal control policies and procedures for conducting SAM.gov checks on vendors in 2024. Effect – Noncompliance with Uniform Guidance requirements and NCMEC’s internal procurement policies increases the risk of engaging with excluded or disqualified persons and potential misuse of federal funds. Questioned Costs - None. Context–This is a condition identified per review of NCMEC’s compliance with requirements of procurement, suspension and debarment of the Uniform Guidance and its federal procurement policies using a non-statistical sample. Repeat Finding – This is not a repeat finding. Recommendation – NCMEC should strengthen its internal controls to ensure strict compliance with both Uniform Guidance procurement requirements and its internal procurement policies. Additionally, NCMEC should provide training to its procurement staff on the federal procurement policies and the procurement requirements outlined in the Uniform Guidance. Views of Responsible Officials – Management recognizes the finding and recommendation provided. In response, NCMEC conducted SAM.gov checks in 2025 for the three vendors mentioned in the finding to ensure they were not excluded or disqualified. NCMEC is dedicated to adhering to Uniform Guidance procurement requirements by consistently performing and retaining SAM.gov checks for all vendor agreements and contracts. Furthermore, NCMEC has included a clause in all vendor contracts to certify that vendors have not been suspended or debarred from Federal contracts and awards.