The Washington State Auditor's Office recently issued an audit finding against King County, Washington for their procurement process in selecting a vendor to supply bus engine parts, tools, and engines.
Changing Requirements Before Award: In March 2010, the County awarded a one year contract for more than $1.3 million to a firm that was not the lowest bidder, and that had failed to certify compliance with Buy America requirements. They rejected two lower bids that did certify compliance with Buy America requirements. Before award, the County sought and received a waiver of the Buy America requirements from the FTA, but did not re-bid the contract with the deleted Buy America requirements.
Federal Audit Finding: The Federal Transit Administration (FTA) investigated the County's award of the contract in April 2010 and found that the County had rejected the two low bids without sound business reasons.
Lack of Knowledge: The State Auditor's Office noted that the County's action occurred because the "County does not have an adequate understanding of federal regulations regarding full and open competition requirements for procurement."
Know the Federal Regulations:
- Public Agencies: If your agency is receiving federal funds, it is critical that you understand the federal requirements. Failure to understand the requirements may result in audit findings, which may lead to the need to pay back federal grant dollars to the federal government.
- Contractors: If you're a contractor, know what federal requirements apply and factor that into the cost of your bid or proposal. Failure to do so may result in additional unanticipated expenses that you will not be reimbursed for.
Mike Purdy's Public Contracting Blog© 2012 by Michael E. Purdy Associates, LLChttp://PublicContracting.blogspot.com
Posts
No comments:
Post a Comment