Finding Text
Criteria Under 2 CFR 200.319, all procurement transactions must provide full and open competition and avoid restrictive practices. Additionally, 2 CFR 200.318 requires entities to maintain oversight of contractor performance and document procurement history in accordance with written standards. Condition From a sample of sixty-eight (68) Title V disbursements reviewed, three (3) instances were identified in which the procurement method applied and related supporting documentation were not adequately aligned with federal procurement standards. Specifically, the University utilized sole-source providers for certain purchases where the rationale provided was unsuitable since it did not sufficiently explain why alternative vendors were not considered. Cause The condition resulted from inadequate procurement documentation and insufficient enforcement of competitive procurement practices. While procurement activities were conducted, the University did not consistently document the justification for sole-source selections or demonstrate that full and open competition was considered. Additionally, procurement review and oversight controls were not consistently applied, leading to incomplete procurement histories and insufficient support for vendor selection decisions. Effect The procurement transactions identified resulted in noncompliance with federal requirements. While the procurement methods used did not fully comply with federal competition requirements, no evidence indicates that the related costs were unreasonable or unallowable. However, continued noncompliance could result in disallowed costs or increased administrative oversight by the U.S. Department of Education, including potential reconsideration of the University’s eligibility to operate under the advance payment. Questioned Costs None. Recommendation We recommend that the University update its procurement policies and related procedures to clearly and further define federal procurement methods, thresholds, and required documentation, and to consistently enforce them. Additionally, the evidence to document the use of sole provider justification must clearly state the unique nature of the source, any urgent circumstances, specific authorizations, and efforts to solicit competition in accordance with 2 CFR Part 200. Views of Responsible Officials Refer to Management's unaudited corrective action plan.