Finding Text
Criteria – When procuring and executing contracts for EPA funded projects, procurement documents must include language to ensure compliance with federal requirements. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must also 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. “Covered transactions” include those contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. Condition –NBC did not include in the professional service contract procurement documents selected for testing, the language to ensure compliance with federal program requirements. NBC also did not obtain a suspension/debarment certification for one of the professional service contracts selected for testing in accordance with established policies and procedures.Cause - NBC did not adhere to established policies and procedures to ensure compliance with the procurement and suspension and debarment requirements for the professional service contracts selected for testing. Effect - NBC did not include in the professional service contract procurement documents selected for testing, the language to ensure compliance with federal program requirements. NBC also awarded a professional service contract prior to obtaining a certification from that contractor that the entity was not debarred, suspended, or otherwise excluded. Questioned Costs – None. Recommendation – We recommend that NBC follow established procedures for all EPA funded contracts to ensure compliance with procurement and suspension and debarment requirements. The procedures should ensure that the language related to compliance with federal program requirements is included in the contracts and procurement documents and that certifications are obtained prior to contract execution to verify that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded.Corrective Action Plan/Auditee Views –- NBC will implement procedures for ensuring compliance with all the required contract language requirements and the federal suspension and debarment requirements for all federally funded contracts. Specifically, NBC will include the required contract language and certifications in professional service procurements and contracts and verify that the entity is not debarred, suspended or otherwise excluded from participating in federally funded contracts. NBC will also amend previously executed, but still active, professional service contracts to include the required contract language and certifications. Anticipated Completion Date – September 21, 2023Contact Person - Richard Bernier