Finding Text
Procurement and Suspension and Debarment Department of Transportation – 20.507 and 20.526 Federal Transit Cluster Grant No(s): LA-2017-025, LA-2018-016, LA-2019-008, LA-2020-010, LA-2020-020, LA-2021-011, LA-2021-023, LA-2021-032, LA-2022-023, LA-2022-024, LA-2023-022, LA-2024-012 Criteria: Title 2 CFR §200.327 requires that non Federal entities include applicable contract provisions described in Appendix II to 2 CFR Part 200 in all contracts and subcontracts funded with Federal awards. These provisions include, as applicable, clauses related to termination for cause and convenience, Equal Employment Opportunity, Davis Bacon Act (when applicable), Contract Work Hours and Safety Standards Act, Clean Air Act, debarment and suspension, Byrd Anti Lobbying Amendment, and other required federal provisions. Condition: The Parish did not include all required federal contract provisions as prescribed by 2 CFR §200.327 and Appendix II to Part 200 in 2 of 8 contracts selected for testing. Specifically, the contracts tested were missing one or more required federal provisions applicable to the nature and funding of the contracts. Universe/Population: The Parish identified 29 contracts subject to Uniform Guidance procurement requirements under the Federal Transit Cluster. From this population, 8 contracts were selected for testing. Cause: The Parish’s procurement review procedures did not include a sufficient control to ensure that all contracts funded with federal awards include the full set of applicable federal contract provisions required by Appendix II to 2 CFR Part 200 prior to execution. Effect: Failure to include required federal contract provisions increases the risk that vendors may not be contractually bound to comply with applicable federal requirements, which could result in noncompliance with Uniform Guidance procurement requirements and potential enforcement actions or repayment of federal funds. Questioned Costs: None determined. Identification of a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Parish strengthen procurement controls by implementing a standardized federal contract language checklist or template to ensure that all contracts funded with federal awards include the applicable provisions required by 2 CFR §200.327 and Appendix II to Part 200 prior to contract execution. View of Responsible Officials: Management acknowledges the finding and agrees that strengthening procurement controls is necessary to ensure full compliance with federal requirements. To address this issue, the Parish has implemented a standardized contract for use in federally funded procurements that incorporates all applicable requirements under 2 CFR §200.327 and Appendix II to Part 200. In this specific instance the two contracts noted were state contracts. When state contracts are utilized, the Parish will take the necessary steps to validate that such contracts include all required federal contract provisions prior to utilizing any state contracts. Guidance will also be provided to all procurement personnel involved in contracting to reinforce understanding and consistent application of federal requirements. Management expects these corrective actions to be implemented in the near term and will conduct ongoing monitoring to ensure compliance and effectiveness of the enhanced controls. Interim Finance Director Victor LaRocca, Purchasing Director Renny Simno and Assistant Accounting Director Charles “Joey” Vasquez will ensure that this is enacted immediately and that guidance is provided to procurement personnel by June of 2026.