2022-004 Procurement
Criteria: The Town must follow the procurement standards set out at 2CFR Section 200.318 through 200.326. This requires bids to be obtained for purchases ranging from $10,000 - $250,000. The Town currently has policies in place to utilize the state library which is a listing of approved vendors for potential purchases of over $50,000. The CFR does allow an entity to increase the lower limit from $10,000 to $50,000 in certain circumstances. One of the conditions is that the entity qualifies as a lowrisk entity. The Town currently does not qualify as low risk; therefore, the Town does not qualify for the increase of the lower limit from $10,000 to $50,000. Sole source vendors are the exception to this
rule.
Condition: The Town did not obtain three bids for over $10,000 purchases. Did use the state library to identify eligible vendors but failed to obtain the required three bids.
Cause: The Town relied on the state library which is not an approved listing according to the CFR.
Effect: The Town is not in compliance with 2CFR Section 200.318 through 200.326 and therefore, the Town has the possibility of not being able to renew contracts in the future.
Recommendation: We recommend that the Town obtain the required three bids for purchases over $10,000.
Views of Responsible Officials and Planned Corrective Actions: The Town has hired an Asset Support Specialist to help ensure compliance with such requirements and understands the importance of
meeting the requirements.