To make better use of the funds it spends on services, the district should amend its administrative code by June 2016 to limit its sole-source contracts to emergency circumstances and circumstances in which only one vendor can meet the district's needs. Further, before executing any sole-source contracts, the district should require written justification demonstrating the reasons for not competitively bidding the services. The justification should include the background of the purchase, a description of the vendor's uniqueness, an explanation of the consequences of not purchasing from the vendor, market research to substantiate a lack of competition, and an analysis of pricing and alternatives.
A justification memo template outlining the requirements per the State Audit has been created and implemented as of December 1, 2015.
Administrative Code Part 5: Procurement Policy was revised to include the State Audit recommendations and was approved and adopted by the Board of Directors on March 28, 2016.
A justification memo template outlining the requirements per the State Audit has been created and implemented as of December 1, 2015. Administrative Code Part 5: Procurement Policy is currently being revised to include State Audit recommendations and will be presented to the Board of Directors in March 2016 for adoption.
As the district notes, it developed a memo template for justifying sole source contracts that includes the background of the purchase, a description of the vendor's uniqueness, a discussion of the consequences of not making the sole source procurement, and an analysis of pricing and alternatives. However, the district has not yet modified its policies but stated it anticipates doing so in March 2016. For this reason, the recommendation is partially implemented.
†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.
*Agency responses received after June 2013 are posted verbatim.