Finding Text
2023‐001 – Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) United States Department of
Treasury, Passed through the Texas Division of Emergency Management.
Compliance – Office of Management and Budget Guidance for Grants and Agreements Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 Code Federal
Regulations (CFR) Part 200 Procurement Standards (2 CFR 200).
Criteria: The City of Groves, Texas is required to adhere to procurement guidelines reflected in the applicable
state and federal regulations and conform to 2 CFR 200 procurement requirements.
Condition and Context: The City did not comply with section 70914 of the Build America, Buy America (BABA)
Act.
Cause: The Build America, Buy America (BABA) Act was made effective on May 14, 2022 for the Coronavirus State
and Local Fiscal Recovery Funds (ALN 21.027) grant. The City was already in the process of preparing bidding
documents for an August 3, 2022 bid and did not realize the grant requirements had been changed.
Effect: The City did not include the Build America, Buy America (BABA) Act requirements in their August 3, 2022
bid documents.
Recommendation: The City should take steps to monitor grants for changes made to the grant requirements after
the grant has been awarded.
View of Responsible Party: Management concurs with the recommendation. See corrective action plan.