Follow-Up for Bid Specification Requirements for Solicitations, November 2018

12 |  F o l l o w ‐ u p o f B i d S p e c i f i c a t i o n R e q u i r e m e n t s f o r S o l i c i t a t i o n s  N o v e m b e r 2 0 1 8  5. Standard Operating Procedures related to Request for Informal Quotes Current Status, Follow‐Up Audit dated November 2018:  The Procurement Division modified SOP #38 ‐ Request for Informal Quotes (RFIQ) on December  29, 2017, to require the Procurement Analyst to request a Certificate of Liability Insurance from  the vendor prior to award. The auditor reviewed four solicitations and all related  documentation procured between January 1, 2018 and August 3, 2018. During review of the  solicitations, the auditor noted that the solicitations did not require a Certificate of Liability  Insurance to be provided prior to award. As a result, the auditor was unable to determine if the  revised RFIQ process is functioning as intended.  Original Audit Observation, Report dated January 2018:  RFIQ’s are classified in the Procurement Manual as “Category Two – Greater than $5,000 to  $25,000” procurements. Section 7.2.D of the Procurement Manual provides guidance for  Category Two procurements stating that, "vendors are required to have insurance to perform  work on County property" and that "a copy of an insurance certificate showing proof of  coverage at the minimum levels must be received prior to commencement of any work". The  SOP for processing RFIQ’s does not require the procurement analyst to obtain proof of  insurance from the awarded vendor, but rather places that responsibility on the requesting  department in the SOP for requisition of a purchase order.    During review of six (6) solicitations, which was 100% of the population using the RFIQ  procurement method, the auditor identified two (2) solicitations that resulted in approved  purchase orders without first obtaining all the required proofs of insurance. In the first  instance, the required proof of workers compensation insurance (or proof of exemption) and  automobile insurance was lacking. In the second instance, the proof of general liability  insurance was dated September 1, 2017, while the purchase order was issued July 6, 2017.  Original Recommendations, Report dated January 2018: To ensure compliance with the Procurement Manual, management should revise SOP #38 ‐  Request for Informal Quotes (RFIQ) to require that the procurement analyst request proof of  insurance at the time the selected vendor is notified of the award.  Management Action Plan:   SOP #38 will be reviewed with Procurement Analysts responsible for processing RFIQ’s to  remind them of the need to request a Certificate of Insurance prior to award.