Finding Text
Finding 2022-001: U.S. Department of Agriculture ? Foreign Agriculture Service; Market Access Program ? Assistance Listing No. 10.601; Grant period: Year Ended December 31, 2022 Criteria ? In accordance with 7 CFR 1485.29(d)(5), Market Access Program ("MAP") participants are required to conduct an appropriate form of competition every three years on all multi-year contracts that are governed by the contracting guidelines. Condition ? Management did not perform an appropriate form of competition in the timeframe required for costs reimbursed under the MAP. Questioned costs ? There are known questioned costs of $71,301 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context ? Inspection of procurement documentation showed one out of three vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed to approve vendor continuance in accordance with the small purchase threshold of 2 CFR 200.320(a)(2)(i). Price or rate quotations were not obtained and a formal assessment was not performed. Of the $3,591,906 of total MAP reimbursements claimed during the year, $133,831 of reimbursements are subject to this procurement requirement, including the known questioned costs of $70,301. Effect ? By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause ? Management believed the vendor provided specialized services and qualified as a sole source procurement, which does not require a form of competition be performed every three years. Repeat finding - N/A Recommendation ? We recommend management implement a control to review the procurement status of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response ? Management will perform an informal review process that includes obtaining quotes from similar vendors and performing a documented analysis of services and corresponding costs for the fiscal year 2022-23 and every three years going forward.