Finding 1148776 (2024-005)

U.S. DEPARTMENT OF TRANSPORTATION Highway Planning and Construction – 20.205 2024-005 Procurement and Suspension and Debarment Policies Condition: The County does not have written policies and procedures in place for the procurement of contractors per 2 CFR Part 200.318 – 200.327, 23 CFR Part 172, and 23 CFR Sections 635.104 & 635.114. The County does not have written standards of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection and administration of contracts per 2 CFR Section 200.318(c) and 48 CFR Sections 52.203-13 and 52.303-16. Criteria: Policies and procedures for the procurement of service providers should be documented and maintained to ensure the proper advertisement and selection of contractors and consultants. Policies should give all contractors and consultants (in-State and out-of-State) a fair opportunity to be considered for awards. Policies in place should also document standards to prevent conflicts of interest during the selection process. Cause: The County was not aware they were required to have written procurement policies and procedures. Effect: In the absence of procurement policies and procedures, conflicts of interest may exist, and bids may be inadequately obtained and awarded. Context: In a sample of three out of three highway planning and construction contracts the County followed procurement standards 2 CFR Part 200.318 – 200.327, 23 CFR Part 172, and 23 CFR Sections 635.104 & 635.114 when bidding and selecting contracts. Due to the estimated fee range, geographic location of the projects, and the Quality Based Selection Ranking for engineer services, the County does not believe the selection process would have changed if written policies and procedures for the procurement of contractors was in place. Therefore, there are no questioned costs. Recommendation: The County Board should draft and approve policies and procedures for the procurement of contractors per the Compliance Supplement, Code of Federal Regulations, United States Codes, and Federal Acquisition Regulations to ensure the proper advertisement and selection of contractors and consultants, and to prevent conflicts of interest during the selection of contractors and consultants. Views of Responsible Officials and Planned Corrective Actions: Management will draft and approve the recommended procurement policies and procedures and disseminate the information to department heads and County employees during the fall of 2025.