Finding Text
Criteria: Per the Compliance Requirements-Procurement and Suspension and Debarment-Compliance Requirement-Procurement, “Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR section 200.329(a) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in case of acquisitions for construction subject to Wage Rate Requirement (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.32 (a). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (CFR section 200.320 (b)). “
Condition: For the procurement of small purchases over $10,000, the Management Agent did not obtain price or rate quotations from an adequate number of qualified sources for the following procurements per the Uniform Guidance for a security vendor for the amount of $131,808.
Effect: The Project did not follow small purchase procedures set forth in Compliance Requirements-Procurement.
Cause: Due to the turnover of Management Agent personnel, the documentation to support small purchases was unavailable and/or not performed.
Recommendation: We recommend that the Project follows a small purchase method for procurement that exceeds $10,000.
Views of Responsible Officials and Corrective Action Plan: No disagreements with the audit finding.