Finding Text
Missing Procurement Contract Provisions Federal Program(s) Information Federal Agency: U.S. Department of Treasury Pass-Through Entity: Norfolk County Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Year: 2021 Compliance Requirement: Procurement Type of Finding: Compliance Internal Control Over Compliance – Significant Deficiency Criteria or Specific Requirement Appendix II to 2 CFR Part 200 requires non-Federal entities to include certain contract provisions in contracts funded with Federal awards, as applicable. In addition, 2 CFR 200.322 requires non-Federal entities to provide, to the greatest extent practicable, a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. Contracts exceeding $100,000 must also include the Byrd Anti-Lobbying Amendment certification requirements as applicable. Condition and Context: During testing of two out of four vendor contracts subject to procurement requirements under the program, we noted that one contract did not contain all required Federal contract provisions. Specifically, the contract was missing the Byrd Anti-Lobbying Amendment provision and certification requirements, and the Domestic Preferences for Procurements provision required under 2 CFR 200.322 related to the Build America, Buy America (BABA) requirements. As a result, the contract did not fully comply with the Federal contract provision requirements applicable to procurements funded with Federal awards. Note that the sample was not a statistically valid sample. Cause: The Town did not have adequate review procedures in place to ensure all applicable Federal clauses required under Appendix II to 2 CFR Part 200 and Uniform Guidance procurement requirements were incorporated into contracts before execution. Effect or Potential Effect: Failure to include all required Federal contract provisions may result in noncompliance with Federal procurement requirements and could limit the Federal government’s ability to enforce applicable grant conditions. In addition, the omission of required clauses increases the risk that contractors may not be aware of specific Federal compliance obligations associated with the award. Questioned Costs: No questioned costs are reported. Identification as a Repeat Finding: This was not a finding in the prior year. Recommendation The Town should strengthen its procurement review and contract administration procedures to ensure all B3contracts funded with Federal awards contain the applicable provisions required by Appendix II to 2 CFR Part 200 and other Uniform Guidance procurement requirements, including the Byrd Anti-Lobbying Amendment and Domestic Preferences for Procurements provisions. Management should utilize a standardized Federal contract clause checklist and perform a documented review prior to contract execution.