Finding Text
Procurement – Written Rate Quotes
Federal Agency: Department of the Treasury and Department of Health and Human Services
Federal Program: Coronavirus State and Local Fiscal Recovery Funds and the Health Center Cluster
Assistance Listing Number: 21.027, 93.224 and 93.527
Award Period: 01/01/2024 – 12/31/2024
Type: Significant Deficiency in Internal Controls over Compliance
Questioned Costs: None
Condition: At the start of a new project, no written rate quotes were obtained as required by the procurement policy. One of the vendors selected had worked on a previous project and proper procurement procedures were followed at that time, however, no new quotes were obtained for the new project.
Criteria: The procurement policy states that for expected small purchases between $10,000 and $250,000 rate quotes must be obtained from an adequate number of qualified sources in writing and documentation should be maintained on file, and vendors over $10,000 should have a signed contract.
Cause: The Clinic has a procurement policy, however, at the start of the new project quoted rates were not obtained for the existing vendor.
Effect: Possible overpayment for the project.
Repeat Finding: Yes.
Recommendation: CLA recommends the procurement policy is consistently followed.
View of Responsible Officials and Planned Corrective Actions: Management takes Partial Exception with this Finding. In an effort to be a good steward of Taxpayer/Federal Funding, Management consciousness chose to continue to work with a Construction Project Manager who had been previously vetted via the CCHC procurement process. CCHC had multiple projects in que and to ensure completion in the most expeditiously and fiscally responsible manner, Management chose to continue to work with a proven entity and monitor for spikes in cost and/or other outliers that may have caused a scintilla of concern. CCHC is currently in the process of revising the Procurement Policy to acknowledge potential future situations and may on occasion find the most cost effective/efficient option is a Sole Source award.