Finding Text
NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, AIRPORT IMPROVEMENT PROGRAM, AL No. 20.106, GRANT No. AIP-3-30-0068-014-2022
Criteria: Sections 15 and 16 of the grant agreement require the county to implement the provisions of the Buy American and Build America, Buy America (BABA) requirements as part of its overall management of the Airport Improvement Program. The Buy American act prevents the county from acquiring or permitting any contractor or subcontractor from acquiring any steel or manufactured products produced outside of the United States to be used on the grant funded project. The BABA provisions require recipients adhere to domestic sourcing requirements and properly document any waivers or exceptions
Condition 1: Project records did not include documentation confirming that materials used on the project complied with Buy American and BABA provisions, and no formal review was conducted to assess compliance.
Criteria: Section 19(b) of the grant contract requires the county to require prime contractors to comply with 2 CFR 180.330 when entering into lower-tier transactions with their contractors and sub-contractors.
Condition: 2. The county did not monitor the prime contractor’s compliance with section 19(b) of the grant contract. Only the prime contractor was verified for eligibility.
Cause: The county’s procurement and grant administration procedures did not include processes that will allow full compliance with all grant terms and conditions.
Effect: Noncompliance with grant terms and conditions.
Recommendation: On future FAA funded projects, the county should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward. The county should obtain the required certifications in order to verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Additionally, the county should request and retain supporting documentation as to the source and origin of steel and manufactured products as required by the Buy American and BABA provisions.
Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.