Finding Text
Assistance Listing, Federal Agency, and Program Name - 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning
Federal Award Identification Number and Year - FAIN not available, 2024
Pass through Entity - Colorado Parks and Wildlife/Land and Water Conservation Fund
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - Per 2 CFR 184.4(b), the Buy America Preference, which is to ensure none of the funds made available for a Federal award for an infrastructure project may be obligated unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States, must be included in all subawards, contracts, and purchase orders for the work performed under the Federal award. Per 2 CFR 200.318 (b), nonfederal entities "must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders."
Condition - The City did not have controls in place surrounding the review of contracts and bid documents and omitted the Build America Buy America clause.
Questioned Costs - None
If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable
Identification of How Questioned Costs Were Computed - Not applicable
Context - The City entered into one vendor contract during the year related to this federal award. The contract was for an infrastructure project, but the required Build America Buy America clauses were excluded from the contract.
Cause and Effect - The City did not have a process in place to review the contract to ensure it was in compliance with Uniform Guidance; therefore, the CIty omitted the required clauses and was not in compliance with 2 CFR 200.318(b).
Recommendation - We recommend the City review all contract and bid documents to ensure they are in compliance with all federal laws and regulations.
Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. The City did have internal policies in place to ensure compliance with federal procurement requirements. However, the project was bid and awarded prior to receipt of any grant funding, so the Buy America Preference was not included in the contracts. While unintentional, the contract requirement was not followed. The City will require an amendment to the contract to include the Build America, Buy America clause. See the corrective action plan.