Monday, July 18, 2011

Agency Violates Piggybacking Requirements

An audit revealed that the purchase of two ambulances by Central Skagit (WA) Medic One failed to comply with piggybacking requirements for buying the vehicles off of another public agency's contract.

Popularity of Piggybacking:  Piggybacking is being used more and more by public agencies eager to avoid the added time and expense of separately bidding various products, and instead relying on the competitively bid products of another agency or a purchasing cooperative.

No Piggybacking Documentation:  The Washington State Auditor's Office found that Central Skagit Medic One bought two ambulances in 2010 for almost $340,000, piggybacking off of another agency's contract.  However, the Auditor noted that Central Skagit Medic One could not document or demonstrate that it met the following piggybacking requirements:
  • The award falls within Medic One's own bid thresholds and bidding requirements.  This could not be demonstrated because Medic One does not have procurement policies and procedures.
  • The lead public agency advertised for bids in accordance with its own statutory requirements.
  • The lead public agency posted the bid notice on a website established for posting public notice for bids.
  • The lead public agency's request for bids notified bidders the contract could be used by more than one public agency.
Interlocal Agreement:  In addition to ensuring compliance with the above items, a public agency in the State of Washington piggybacking off of another's solicitation and contract must have an Interlocal Agreement with the lead public agency.  RCW 39.34 (Interlocal Cooperation Act) governs the use of piggybacking in Washington State.

Audit Report:  Click here to read the audit finding that also includes a finding that Medic One did not solicit bids or quotes when it purchased more than $100,000 worth of fuel and medical supplies.
Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

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