Emergency Public Works: Audit Finds County Skipped Steps

The Washington State Auditor's Office issued findings that Grays Harbor County failed to comply with basic federal and state public works contracting requirements on three public works emergency contracts.

The County entered into three contracts with one contractor for a total of $141,140. The federal disaster funds came from a U.S. Department of Homeland Security grant to assist with debris cleanup from a windstorm.

According to the audit, the County failed to comply with the following requirements:

• Debarment: Verify that the contractor was not on the federal debarment list. Public agencies should check the federal Excluded Parties List System (EPLS) online at www.epls.gov, and print documentation from the search that the vendor is not debarred from doing business under federal grants (Title 2, CFR, Section 180.300). This is one of the most common audit findings for public agencies administering contracts with federal funds.
  
  
• Performance Bond: Obtain a performance bond for the work of the three contracts. Not only is this required under the applicable federal regulations cited in the audit (28 CFR, Section 66.36, Procurement), but it is also required under Washington state law (chapter 39.08 RCW).
  
  
• Retainage: Withhold 5% of each progress payment as retainage for the protection of parties listed in RCW 60.28.011.

Emergency public works contracting requires diligence to comply with applicable provisions, while at the same time protecting the public's safety and health by responding quickly.

To read the audit report, click here.