Finding Text
CONDITION: The Beaver County Career and Technology Center contracted with a third-party vendor – Huckstein Mechanical for upgrades to the HVAC system at the Center. The contract was procured through a cooperative purchasing group. The Center, 1) was unable to provide documentation from the cooperative purchasing group to verify that the HVAC upgrade procurement contract was competitively procured, such as a bid evaluation and public solicitation and 2) did not obtain the adequate number of price or rate quotations. This is a repeat finding (2023-001) from the prior fiscal year.
CRITERIA: As specified in 2 CFR 200. 318(i) of the Uniform Guidance, the Center must maintain sufficient records 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. In addition, small purchase procedures per 2 CFR 200.320(a)(2)(i) for acquisitions between the micro-purchase threshold (currently $10,000) and the simplified acquisition threshold (current $250,000), price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate. Per 24 PS 8.807.1, there should be three quotes that are either written or well documented.
CAUSE: Center personnel directly responsible for the oversight and execution of the HVAC upgrade contract interpreted that the requirements specified by 2 CFR 200.318(i) and 2 CFR 200.320(a)(2)(i), would be met through the cooperative purchasing, however the Center appears to not have received and maintained all of the specific history of procurement documents internally, as referenced under the criteria section, to support this compliance. In addition, the Center did not maintain documentation to substantiate that an adequate number of price quotations were solicited.
EFFECT: The Beaver County Career and Technology Center did not comply with the requirements of 2 CFR 200.318(i) and 2 CFR 200.320(a)(2)(i) of the Uniform Guidance, regarding maintaining records sufficient to detail the history of procurement for the technology equipment. In addition, the Center did not comply with 24 PS 8.807.1 regarding maintaining documentation to substantiate that an adequate number of price quotations for the HVAC upgrade project.QUESTIONED COST: $1,000,000
RECOMMENDATION: I am recommending that the management of the Center review and update as necessary its procurement policies to ensure retention of the appropriate procurement documentation, in all instances, including such instances whereby the Center is using a contract vehicle from a cooperative purchase network so as to comply with all applicable sections of the Uniform Guidance, specifically Section 2 CFR 200.318(i) and 2 CFR.320(a)(2)(i) of the Uniform Guidance. In addition, it is recommended that the Center document its attempts to obtain an adequate number of price or rate quotations as specified by 24 PS 8.807.1 over the $10,000 expenditure threshold.
VIEWS OF RESPONSIBLE OFFICIALS: Management of the Center has reviewed the above noted finding and recommendation and have developed a corresponding ‘Corrective Action Plan’ to address this matter (See Corrective Action Plan).