Finding Text
Program CFDA# 84.425 Finding Criteria ? A component of compliance relating to federal awards is maintaining records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition Found ? The District used federal funds to make purchases greater than $21,900 and did not solicit public bids and did not document specific circumstances of noncompetitive procurement exceptions. Cause of the Finding ? The District was under the false notion that purchases made through the Commonwealth of Pennsylvania?s cooperative purchasing program (COSTARS) satisfied compliance of bid requirements of federal purchases. Effect of the Finding ? The District was not in compliance with procurement requirements for federal funds. Questioned Costs ? Purchases made under the false notion that COSTARS satisfied bid requirements total $119,880. Recommendations - Documentation is key for all federal purchases. A purchase price from cooperative purchasing programs can be considered one competitive price proposal and cannot replace a procurement process. Obtain advertisement when using co-operative purchasing or advertise when appropriate, document adequate quote/bid information from three vendors, and thoroughly document the ?reason? and ?cost analysis? of sole source noncompetitive procurement exceptions.