Finding Text
CONDITION: The School District of the City of Monessen contracted with Johnson Controls for fire alarm upgrades, and Dagostino Electronic Services for the installation of exterior cameras. These contracts individually exceeded the Uniform Guidance micro purchase threshold of $10,000, but did not exceed the Simplified Acquisition Threshold of $250,000. The District was unable to 1) provide records sufficient to detail the history of procurement for these two contracts and 2) provide documentation to verify that price or rate quotations were obtained from an adequate number of qualified sources.
CRITERIA: 24 Pa. Statutes 8.807.1 and Section 2 CFR 200.320(a)(2)(i) of the Uniform Guidance prescribes the bidding requirements for equipment, supplies, and work of any nature made by a non-federal entity whereby the cost exceeds certain dollar thresholds as adjusted periodically. In instances where the cost incurred exceeds the Uniform Guidance micro purchase threshold of $10,000 but does not exceed the Simplified Acquisition Threshold of $250,000, price or rate quotations must be obtained from an adequate number of qualified sources. In addition, as specified in 2 CFR 200. 318(i) of the Uniform Guidance, the District must maintain sufficient records to detail the history of procurement. CAUSE: School District personnel directly responsible for the oversight and execution of these contracts were not fully familiar with the procurement requirements as prescribed by 24 Pa. Statutes 8.807.1, and Sections 2 CFR 200.320(a)(2)(i) and 2 CFR 200.318(i) of the Uniform Guidance.
EFFECT: The School District of the City of Monessen did not comply with the requirements of 24 Pa. Statutes 8.807.1, and Sections 2 CFR 200.320(a)(2)(i) and 2 CFR 200.318(i) of the Uniform Guidance with regard to maintaining sufficient records to detail the history of procurement and conducting a cost or price analysis for a procurement in instances where the procurement cost incurred for goods and/or services exceeds the Uniform Guidance micro purchase threshold of $10,000 but does not exceed the Simplified Acquisition Threshold of $250,000.
QUESTIONED COST: $67,578
RECOMMENDATION: I am recommending that the management of the School District review and update as necessary its procurement policies to ensure In instances where the procurement cost incurred for goods and/or services exceeds the Uniform Guidance micro purchase threshold of $10,000 but does not exceed the Simplified Acquisition Threshold of $250,000, that 1) price or rate quotations are obtained from an adequate number of qualified sources, and 2) sufficient records are maintained to detail the history of procurement. These measures will enable the School District to comply with the procurement requirements as prescribed in 24 Pa. Statutes 8.807.1 and Section 2 CFR 200.320(a)(2)(i) of the Uniform Guidance.
VIEWS OF RESPONSIBLE OFFICIALS: Management of the School District has reviewed the above noted finding and recommendation and have developed a corresponding ‘Corrective Action Plan’ to address this matter (See Corrective Action Plan).