Finding 1147933 (2024-002)

Finding 2024-002: Buy America, build America preference provisions Type of Finding: Significant Deficiency Criteria: 2 CFR 200.322(A) requires buy america, build america (BABA), preference provisions be included in subawards, contracts and purchase orders under federal awards. Condition: The City failed to include BABA preference provisions in contract with vendor. Cause: The City vetted the vendor ensuring manufacturing was occuring in the United States of America, but failed to include the required preference provisions in the contract with the vendor. Effect: The City does not have controls ensuring BABA preferences are included in all required contracts. Questioned Costs: None Further Information: There were 2 possible contracts to review for inclusion of BABA preference provisions. We reviewed both contracts, noting the other contract reviewed included BABA provisions. Repeat Finding: No Recommendation: Implement review of contracts prior to execution ensuring BABA provisions are included. Views of Responsible Officals: The City concurs with this audit finding and will implement controls to ensure required provisions are included in all contracts.