Finding Text
Procurement, Suspension and Debarment Questioned Costs: $1,071,477
Department of the Treasury
21.027 Coronavirus State and Local Fiscal Recovery Program (SLFR) (COVID-19)
Grant No(s): N/A
Criteria: Purchases made from federal grants must follow the procurement standards of Title 2 CFR sections 200.318 through 200.326 (the Uniform Guidance or UG). The Louisiana State public bid law must also be followed, which requires purchases of equipment greater than $60,000 should be made using the sealed bid method.
Condition: The City-Parish purchased police vehicles in the amount $1,071,477 without undergoing the bid process.
Universe/
Population: Seventeen contracts totaling $13,644,485 were subjected to compliance testing. Two contracts totaling $1,071,477 were found to be noncompliant.
Effect: The City-Parish may be non-compliant with the purchasing requirements of the Uniform Guidance and the Louisiana State public bid law with respect to this purchase.
Cause: Improper execution of established internal controls and a lack of adherence to policies.
Recommendation: The City-Parish should strengthen controls to ensure all purchases undergo the appropriate competitive procurement processes.
View of Responsible Officials:
The Purchasing Director for the City-Parish has the authority as provided by the Code of Ordinances to approve emergency purchases upon review of the certification of the emergency by the user department. At the beginning of 2024, the Baton Rouge Police Department noted its patrol units were in less than standard conditions and a recent Police Academy graduating class of sworn officers compounded the need for viable units. At the same time, a nationwide supply chain crisis limited the availability of vehicles for purchase. Multiple quote requests from vendors across Louisiana confirmed a lack of available inventory including the Louisiana State Contract vendor as well as a piggyback contract for the Jefferson Parish Sheriff’s Office. After an exhaustive search, a single vendor was located who had an inventory of matching vehicles on hand for offer within a limited time frame. In an effort to not compromise public safety, an emergency purchase was utilized which was signed by both the Police Chief and the Purchasing Director. As required, notice was given by publishing in the newspaper.
Final Auditor Comments:
While the views above cite local ordinances, state statutes still apply and give definition to situations that qualify as an emergency. The conditions under which the purchase was made may not qualify as an emergency, as defined by La R.S. 38:2211. Furthermore, La R.S. 38:2212 requires the emergency to be certified by the public entity. Louisiana Legislative Auditor’s published legal guidance indicates that this certification is to be taken through a public meeting. There was no certification of the emergency in a public meeting.