Finding Text
III ‐ Findings and Questioned Costs – Major Federal Award Program
Finding No. 2023‐002
National Science Foundation ‐ Research and Development Cluster
Federal Assistance Listing Number #47.070 ‐ Compliance Requirement Code: I‐Procurement and
Suspension and Debarment
Criteria
In accordance with §200.318(a), General Procurement Standards, a non‐federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and
regulations, provided that the procurements conform to applicable federal law and the
standards identified in General Procurement Standards. Additionally, §200.318(i) states that the
non‐federal entity must maintain records sufficient to detail the history of the procurement.
In addition, in accordance with §200.213 and §180.300, non‐federal entities cannot enter into awards,
subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from
or ineligible for participation in federal assistance programs or activities.
Condition
For the procurement samples tested, Management did not provide adequate supporting documentation
for the procurement including ensuring proper suspension and debarment checks were performed.
Cause
The Organization did not have adequate policies, procedures, and controls in place to ensure compliance
with the general procurement standards and suspension and debarment requirements.
Effect or Potential Effect
Failure to perform procurement procedures in accordance with a written policy that complies with the
Uniform Guidance could result in the procurement being disallowed. Failure to timely verify that a vendor
is not suspended or debarred could result in entering into a contract with an entity that is barred from
performing work for the U.S. government.
Questioned Costs: Not applicable.
Context
For three procurement samples out of a total of three tested, management did not provide adequate
supporting documentation for the procurement transaction.
Repeat Finding: No
Recommendation
We recommend that the Organization establish written procurement policies and procedures to ensure
that Organization is in compliance with the Uniform Guidance and that all staff are trained on this policy
to ensure compliance and related internal controls over compliance are operating effectively.
Views of Responsible Officials
Our understanding of the finding is that it pertains to the following sections of 2 CFR 180:
§ 180.220 Are any procurement contracts included as covered transactions? (a) Covered
transactions under this part— (1) Do not include any procurement contracts awarded directly by
a Federal agency; but (2) Do include some procurement contracts awarded by non Federal
participants in nonprocurement covered transactions. (b) Specifically, a contract for goods or
services is a covered transaction if any of the following applies: (1) The contract is awarded by a
participant in a nonprocurement transaction that is covered under §180.210, and the amount of
the contract is expected to equal or exceed $25,000. (2) The contract requires the consent of an
official of a Federal agency. In that case, the contract, regardless of the amount, always is a
covered transaction, and it does not matter who awarded it. For example, it could be a
subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in
the appendix to this part.
§ 180.300 What must I do before I enter into a covered transaction with another person at the
next lower tier? When you enter into a covered transaction with another person at the next lower
tier, you must verify that the person with whom you intend to do business is not excluded or
disqualified. You do this by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that
person; or (c) Adding a clause or condition to the covered transaction with that person.
To support compliance with these requirements, MGHPCC controls for federal programs in place in FY23
included the following provision:
Criteria for approval of Purchase Orders above $25,000 include a check to ensure that the
vendors are not suspended disbarred, or otherwise excluded from participating in a
covered transaction as defined in 2CFR 180.220 and 2CFR 180.300.
To address the finding noted above, we have added the following documentation requirement:
Policy has been updated to require that the check be documented by capturing a copy of
the entity information database entry at www.sam.gov as part of the Purchase Order
approval process for vendorswho exceed the threshold defined in 2CFR 180.220 and 2CFR
180.300. The entity information database report includes a time stamp, which serves as
an indication of when the database entry was checked.