Finding Text
Finding Reference Number: SA2022-008 Suspension and Debarment
AL Number: 20.205
Assistance Listing Title: Highway Planning and Construction Cluster
Federal Agency: Department of Transportation
Pass Through Entity: California Department of Transportation
Federal Award Identification Number: ATPL-5238(068)
Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. The non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. We understand the City’s process for contracts under the California Department of Transportation grants is to research the vendor’s license during the bidding process and verify that the vendor is not debarred or suspended.
Condition: The City had one construction contract under the ATPL-5238(068) grant award during fiscal year 2022 and we requested documentation that the City had completed the review of whether the vendor was suspended or debarred. City staff was unable to locate documentation that the check had been completed. We did note that as of July 28, 2025, the vendor was not suspended or debarred according to the SAM.gov website.
Effect: The City is not in compliance with the suspension and debarment requirements of 2 CFR section 180.995.
Cause: Due to staff turnover, City staff was unable to locate documentation of whether the required check of the vendor’s suspension and debarment had been completed.
Recommendation: The City should develop procedures to ensure that the required check of a vendor’s suspension and debarment status is completed and the documentation should be retained in the grant files.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.