Finding Text
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.