Finding 574608 (2024-001)

The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use their own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Title 39, a State law commonly referred to as the “Public Works Law”, requires the construction, installation, repair, and renovation of public buildings in excess of $100,000.00 that are paid in whole or part, with public funds to be bid under the provisions of the Public Works Law. The Lauderdale County Commission (the "Commission") entered into a public works contract for the purchase and installation of HVAC heating and cooling systems in the amount of $2,999,96.00, of which $749,998.98 was expended during the fiscal year. The Commission did not bid the project in accordance with the Public Works Law and instead purchased the HVAC systems and installation using a purchasing cooperative. As a result, the Commission did not comply with the Uniform Guidance procurement requirements and entered into a public works contract without adhering to the requirements of the Public Works Law for this purchase.