Finding Text
Finding 2024-001 Procurement
Information on the Federal Programs: 93.421
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2
U.S. Code of Federal Regulations (CFR) Part 200, paragraph 318 “General Procurement
Standards” states that the non-Federal entity must use its own documented procurement
procedures which reflect applicable State, local, and tribal laws and regulations, provided that the
procurements conform to applicable Federal law and the standards. Furthermore, paragraph 319
“Competition” states that all procurement transactions must be conducted in a manner providing
full and open competition consistent with these standards.
Condition: We noted that BCHC does not have a written procurement policy in accordance with 2
CFR 200. We also noted that although certain vendors were included in award proposals by
BCHC, full and open competition was not documented for certain purchases using Federal funds.
Cause: BCHC does not have a procurement policy in accordance with 2 CFR 200 and is therefore
not following the procedures required within 2 CFR 200.
Effect or Potential Effect: BCHC could incur disallowed costs for not properly procuring goods
and services.
Questioned Costs: $200,000
Context: BCHC is at risk of entering into contracts for goods or services under Federal awards
that were not adequately procured based on the regulations in the Uniform Guidance and the
awarding agency or pass-through entity could disallow the costs paid for the goods or services.
Identification as a Repeat Finding, if Applicable: Not applicable
Recommendation: We recommend that BCHC develop and implement a formal procurement
policy that complies with the Uniform Guidance (2 CFR 200.317–200.327), specifically addressing
requirements for full and open competition, documentation of procurement procedures, and
selection criteria for vendors. The policy should establish thresholds for the different procurement
methods (e.g., micro-purchases, small purchases, sealed bids, competitive proposals, and noncompetitive
proposals) and clearly outline the circumstances under which non-competitive
procurement is permissible. These exceptions include sole source availability, public exigency or
emergency, explicit authorization by the Federal awarding agency or pass-through entity, or
inadequate competition despite solicitation efforts should be defined in accordance with 2 CFR §
200.320(c). Additionally, the policy should require that all purchases using Federal funds are
supported by appropriate documentation of the procurement process and justification for the
selected method.