Finding 635578 (2022-003)

Criteria: Per procurement standards, nonfederal entities other than States, must follow the procurement standards set out at 2 CFR Sections 200.318 through 200.326. Per 2 CFR Section 200.319, procurement expenditures require documentation over the bidding process. Condition: During our testing of contracts above $25,000 to ensure that vendors are properly vetted to not be on the SAM.gov debarred vendors listing we noted no support showing that vendors were reviewed against the debarred vendors listing prior to entering into a contract. Questioned costs: N/A Context: During our testing of contracts above $25,000 to ensure that vendors are properly vetted to not be on the SAM.gov debarred vendors listing we noted no support showing that vendors were reviewed against the debarred vendors listing prior to entering into a contract. Cause: General error in lack of vendor verification due to lack of an oversight process in place. Effect: Debarred vendors could be used without proper verification. Recommendation: We recommend that the Organization implement processes and procedures to ensure that all vendors are reviewed against the debarred vendors listing prior to entering into the contract. Management Response: The Organization currently utilizes a third-party vendor, Compliatric, to screen vendors in accordance with SAM.gov requirements on a routine basis. However, a procedure does not currently exist to ensure 100% of new vendors are entered into this separate system. A procedure is being developed to ensure that all new vendors are entered into Compliatric and screening is completed prior to entering into a contract.