Finding 395122 (2019-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2019
Accepted
2024-04-30
Audit: 305046
Organization: Family Center of Hope (TN)
Auditor: Wharton CPA LLC

AI Summary

  • Core Issue: The Family Center of Hope did not obtain formal bids for construction costs exceeding $1,500,000.
  • Impacted Requirements: This violates the Louisiana State Public Bid Law, which mandates bids for public works over $250,000.
  • Recommended Follow-Up: Ensure compliance with all federal, state, and local procurement laws moving forward.

Finding Text

Public Bid Law: Condition: Family Center of Hope budgeted construction costs for damage to their property at over $1,500,000, but the agency did not obtain formal bids for the work. Criteria: The Louisiana State Public Bid law (RS 38-2212) requires the agency to advertise for and receive bids prior to contract issuance for public works exceeding $250,000. Cause: The cause is undeterminable. Effect: The agency did not comply with the Louisiana Public Bid Law or Federal procurement laws. Recommendation: It is recommended that the agency comply with all applicable federal, state, and local laws regarding procurement of services.

Corrective Action Plan

Family Center of Hope completed the public bid process guided by M odus, Inc. Architects and Planners and C Watson Group, LLC. [NOTE: The work performed was continued work of the previous City of New Orleans Building Pennit (08 com-00841 )). No one submitted a bid due to the complexity of the project (SEE NOTE BELOW). FEMA urgently wanted the project moving. Therefore, with FEMA consultation the Family Center of Hope chose a "Design-Build" approach which is the selection of a licensed contractor and subs to complete the project. This process was in compliance with FEMA policy noted in the FEMA Public Assistance Handbook page 15: Project Formation Method of Work- a project may be grouped by how the work will be completed. For example, all work completed under a single contract may be a project. Or all work undertaken by a force account crew may be a project. Complex- for extensive damage to several facilities at a complex (for example, a high school) all damage could be combined into one project, or separated into several projects, such as roof repair, or work done by a single contractor, or all repairs done by force account. The project was completed within the scheduled construction timeline, passed all required inspections, and was not over budget. [NOTE: Regarding no one submitting bids: it is our understanding that no one submitted bids because they were uncertain of the accuracy of the prior architectural drawings, uncertain of the accuracy of the construction work by the prior contractor, and the uncertainty of the existing conditions and damages to the building. Due to these uncertainties no one submitted bids for HIGH RISK of potential profit lost and potential time lost on the project.]

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 395121 2019-001
    Material Weakness Repeat
  • 395123 2019-003
    Material Weakness Repeat
  • 971563 2019-001
    Material Weakness Repeat
  • 971564 2019-002
    Material Weakness Repeat
  • 971565 2019-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $795,916