Finding Text
Finding 2025-006 – Procurement and Suspension and Debarment: Inadequate Documentation of Competitive Bidding Procedures – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Agencies – Department of Health and Human Services, National Science Foundation, National Institutes of Health, National Aeronautics and Space Administration, Department of Agriculture; Assistance Listing Numbers (ALN) - 93.859, 47.083, 47.050, 93.310, 43.008, 10.699, 47.078; Program Name - Research and Development Cluster; Award Year / Award Number – FY 2025, 2024, 2023, 2022, 2021, 2020 / Awards ANTHC- 23-U-396186; 5U24GM146576-02; 2049596; 2243258; ICER 2040729, Subaward 15660316; FIAN 2220560; ICER 1928230; Subaward 1558528; ICER 2052107; 2127346; 2309480; 80NSSC20M0070; 80NSSXC20M0070; 80NSSC24M0179, 24-MIRO-0054;1333MF4P0220; 18-JV-11261944-100; 2325081; 2419971, subaward 24-S37; Criteria or Specific Requirement – 2 CFR 200.318 and 2 CFR 200.320 require recipients of federal awards to maintain sufficient records to document the history of procurement transactions, including the procurement method used, bids or proposals received, contractor selection or rejection, and the basis for contract price, as applicable.; Condition – For one procurement tested, APU did not retain documentation showing that bids were solicited, received, and evaluated before vendor selection. As a result, we could not determine whether the appropriate procurement method was used or whether adequate competition was obtained for that transaction.; Cause – Management did not have formal procurement policies and procedures requiring documentation of competitive bidding and vendor selection to be retained in the procurement file for all applicable transactions.; Effect or Potential Effect – Without sufficient procurement documentation, management may not be able to demonstrate that the appropriate procurement method was used or that adequate competition was obtained for covered transactions.; Questioned Costs - None reported.; Context – We selected three procurements totaling $267,870 out of a total of 5 procurements totaling $369,307 made during the year. We identified one exception totaling $18,000.; Repeat Finding – This is not a repeat finding.; Recommendation - We recommend that management strengthen procurement procedures to require documentation of the procurement method used, bids or proposals received, evaluation of vendor responses, and vendor selection rationale to be retained in the procurement file.; Views of Responsible Officials – Management concurs with the finding and is strengthening procedures to ensure bidding and vendor selection documentation is retained.