Finding Text
2024-002 Procurement
Space Operations
Assistance Listing Number: 43.007
Federal Award ID Number: 80JSC018M0005
National Aeronautics and Space Administration
2024 Funding, Repeat Finding
Criteria: 2 CFR 200.303 provides that non-Federal entities must establish and maintain effective
internal controls to provide reasonable assurance of compliance with Uniform Guidance.
2 CFR Section 200.320 and 48 CFR section 52.244-5 sets forth the requirements for acquisition
contracts awarded to vendors including the requirement to obtain price or rate quotations from an
adequate number of qualified sources and the circumstances in which noncompetitive procurement
methods can be used.
Also, CASIS’s procurement policy states that it is in both CASIS and NASA’s interest to compete when
it makes sense regardless of the threshold and can be achieved by obtaining three quotes, i.e.,
comparative shopping. A minimum of 3 vendors are required to demonstrate competition.
CASIS may solicit a proposal from only one source in circumstances where one or more of the
following conditions apply (FAR Subpart 6.3):
(i) The item or service is available only from a single source. supplies or services to be procured immediately.
(iii) NASA specifically authorizes the use of noncompetitive proposals (directed source).
(iv) After consultation with a number of sources, competition is determined inadequate.
(v) The vendor is listed as a sole source provider under the Cooperative Agreement.
Condition: Sole source determination was not documented for two vendors.
Cause: For two legal expenses tested in the sample, no documentation of this being a sole source
purchase prior to expending the funds.
Effect: If CASIS cannot demonstrate that procurement of services were properly sole sourced, this
may result in questioned costs and funds being returned to NASA.
Questioned Costs: Known questioned costs of $41,762 and likely questioned costs of $90,024.
Perspective: There were 2 out of 60 expenses selected for which the control failed.
Recommendation: Non-competitive procurement should be documented and approved prior to
incurring expenses.
Management Response: CASIS acknowledges the error documenting these procurements. The two
legal service vendors had been discussed internally and the selections rationalized based on the
specialty of the professional services required for leasing and employment matters. Unfortunately,
the documentation was not completed and stored as required by our internal policies. We consider
these costs to be both necessary and reasonable, as we were negotiating a new office space lease
and the rates were consistent with other legal service providers that CASIS has procured. CASIS plans
on reinforcing the procurement documentation requirements with our personnel through additional
training and reminding that engagement letters need to go through our document review software.