Finding Text
2022 - 001 – PROCUREMENT AND SUSPENSION AND DEBARMENT
Federal Transit Administration Formula Grants
Assistance Listing No. 20.507
U.S. Department of Transportation
Criteria
Non-federal entities are prohibited from contracting with or making subawards under covered
transactions to parties that are suspended or debarred or whose principals are suspended or
debarred. Covered transactions include procurement contracts for goods or services that are
expected to equal or exceed $25,000 and all non-procurement transactions (e.g., subawards to
subrecipients).
Condition and Context
We performed testwork on 40 vendors and noted that for one out of 40 vendors tested, there was
no Suspension & Debarment certification in the files or any evidence that a review had been
performed to verify that the vendor or the vendor’s principals had not been suspended or
debarred. Upon discussion with MTA, they obtained the required signed certifications from the
vendor prior to the issuance of the fiscal year 2022 audit report.
Questioned Costs
The cost associated with the one item selected for testing was for one month’s lease payment of
$11,333. MTA paid this vendor for six months from a federal grant during fiscal year 2022;
therefore, the total questioned cost for the six months totaled $67,988. Federal Transit Administration Formula Grants
Assistance Listing No. 20.507
U.S. Department of Transportation
Cause
The amounts paid to the vendor in question were related to a land lease. MTA was unaware that
payments for a land lease fell under the federal suspension and debarment requirements.
Effect
MTA may have entered into an agreement with a vendor that has been suspended or debarred.
Recommendation
We recommend that MTA ensure compliance with this regulation as it relates to federal
programs for all vendors and should include a requirement that suspension/debarment
certifications be obtained and placed in all contract files for all vendors regardless of the type of
goods or services provided.
Views of Responsible Officials and Planned Corrective Actions
See management’s corrective action plan.