Finding Text
Finding No. 2022-001 Procurement Federal Agency: Federal Communications Commission Federal Program Name: COVID 19 ? Emergency Connectivity Fund Program Assistance Listing Number: 32.009 Award Period: July 1, 2021 through August 29, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Criteria The City must comply with their purchasing policy, which encompasses the procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition The City?s procurement for two vendors did not comply with Uniform Guidance. Questioned Costs $1,472,280 Context The City is required to utilize a sealed bidding process for expenditures in excess of the $250,000 threshold per Uniform Guidance. As a result of our testing, we noted two out of two vendors selected for testing with expenditures in excess of the threshold which did not utilize the sealed bidding process. The sample was a statistically valid sample. Effect The City made purchases that did not follow federal Uniform Guidance procurement standards. Cause The City had very limited time to apply for this grant funding. They obtained competitive quotations as the sealed bidding process would not have been feasible given the time needed to go through the process. However, a bid waiver was not obtained, although it could have been within the necessary timeframe.