Finding Text
Finding No.: 2022-003
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
AL Program: 14.850 Public and Indian Housing
Federal Award No.: GQ001-00000321D
Area: Procurement and Suspension and Debarment
Questioned Costs: $0
Criteria:
In accordance with applicable procurement and suspension and debarment requirements, for any
amounts not exceeding $25,000, GHURA may use small purchase procedures. Sealed bidding
shall be used for all contracts that exceed the small purchase threshold and that are not
competitive proposals or non-competitive proposals. Under sealed bids, GHURA publicly
solicits bids and awards a firm fixed-price contract (lump sum or unit price) to the responsible
bidder whose bid, conforming with all the material terms and conditions of the Invitation for Bid
(IFB), is the lowest in price.
Condition:
For one (or 4%) of 25 procurement transactions, aggregating $399,002 of $1,919,475 in total
program nonpayroll expenditures, small purchase procedures were used for purchase order
number PO220265 in the amount of $30,199 for janitorial supplies. However, sealed bidding
procedures were required.
Cause:
GHURA did not effectively enforce controls over compliance with applicable procurement and
suspension and debarment requirements.
Effect:
GHURA is in noncompliance with applicable procurement and suspension and debarment
requirements. No questioned cost is reported because the procurement file demonstrated
competition and the selection of the lowest quotations.
Recommendation:
Responsible personnel should enforce controls over compliance with applicable procurement and
suspension and debarment requirements. For procurements in excess of $25,000, responsible
personnel should publicly solicit bids and award a contract to the responsible bidder whose bid
conforms with the IFB and is the lowest price.
Views of Responsible Officials:
Responsible procurement personnel are updating the procurement policies which include
emergency procurement and small purchases.