Finding Text
2022-002: Procurement and Suspension and Debarment Federal Agency: U.S. Department of Education Special Education Cluster (IDEA); Federal Assistance Listing Number 84.027, Special Education ? Grants to States; Federal Assistance Listing Number 84.173, Special Education ? Preschool Grants Criteria: 48 CFR Section 52.244-5(a) states, ?The Contractor shall select subcontractors (including suppliers) on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract.? Further, 2 CFR Section 200.318(i) states, ?The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.? Condition: Both of the samples we selected for testing did not follow competitive bidding procedures or maintain documents as to the rationale for the method of procurement and contractor selection or rejection. Cause: The School District only renewed the contracts and did not provide for an opportunity for competitive bidding procedures. Effect or Potential Effect: The School District could be paying more than a reasonable amount for the services provided. Recommendation: The School District should follow state and federal procurement guidelines and select contractors on a competitive basis. The School District went through proper bidding procedures for 2022-23 fiscal year for procurement of services. Management?s Response: See corrective action plan.