Finding Text
NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No 111604, YEAR ENDED JUNE 30, 2023
Criteria: Per section 3.5 of the grant contract, the county is required to obtain from its third-party contractors certifications required by Department of Transportation regulations, “Governmentwide Debarment and Suspension (Non-procurement)," 49 CFR Part 29, and otherwise comply with the requirements of those regulations.
Condition 1: The county did not obtain the required certifications in order to verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program.
Criteria: Section 2.8 of the grant contract requires the county to include contract Sections 2.9 to 3.17 in any advertisement or invitation to bid for any procurement under the contract.
Condition 2: The county did not include the required contract sections in its bid advertisements.
Criteria: Section 3.12 of the grant contract incorporates FTA Circular 4220.1F terms into the contract. Per FTA Circular 4220.1F, Federal Transit Authority’s (FTA) Buy America requirements prevent FTA from obligating an amount that may be appropriated to carry out its program for a project unless "the steel, iron, and manufactured goods used in the project are produced in the United States" (49 U.S.C. § 5323(j)(1)). FTA’s Buy America requirements apply to third-party procurements by FTA grant recipients. A grantee must include in its bid or request for proposal (RFP) specification for procurement of steel, iron or manufactured goods (including rolling stock) an appropriate notice of the Buy America provision and require, as a condition of responsiveness, that the bidder or offeror submit with the bid or offer a completed Buy America certificate in accordance with 49 CFR §§661.6 or 661.12.
Condition 3: The county did not include in its bid or request for proposal (RFP) specification for procurement of steel, iron or manufactured goods nor did they require the bidders to submit completed Buy America certificates.
Criteria: Section 3.1 of the grant contract incorporates the FTA Master Contract MA(26) by reference. Section 16 (9) of FTA Master Contract MA(26) restricts lobbying in accordance with 31 U.S.C. § 1352. Contractors that apply or bid for an award exceeding $100,000 must file the certification required by 49 C.F.R. part 20. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. § 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-federal award.
Condition 4: The certifications required by 49 C.F.R. part 20 were not filed nor on hand for inspection.
Cause: The county does not have a system in place that will allow full compliance with all program terms and conditions.
Effect: Non-compliance with program terms and conditions.
Questioned Costs: None
Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party.
Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.