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

7 |  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  2. Documentation ensuring established contracts do not exist Current Status, Follow‐Up Audit dated November 2018:  The Procurement Division modified the Solicitation Worksheet Form on December 28, 2017, to  require departments to verify an existing contract does not exist, or to indicate why an existing  contract cannot be utilized. Upon review of SOP #20 ‐ Formal Invitation for Quotes (IFQ)  Process, the SOP was not updated to require the Procurement Analyst to initial the Solicitation  Worksheet nor to verify whether an existing contract does not exist.   The auditor reviewed 10 Solicitation Worksheets related to the IFQ Process. The auditor  identified that three Solicitation Worksheets did not utilize the modified form which includes  documentation verifying that an existing contract does not exist, or indicate why an existing  contract cannot be utilized.   Original Audit Observation, Report dated January 2018:  The Procurement Manual, Chapter 7.2.E related to RFIQ's (Category Two purchases) and  Chapter 7.3.A.4 related to IFQ's (Category Three purchases) states that “no [Category Two /  Category Three] purchase transactions shall be permitted where equivalent commodities or  services are already available" under an existing contract, master contract, blanket contract, or  term contract, except with written approval of the Procurement Official. SOP #38 – Request for  Informal Quotes (RFIQ) Process, includes a step for the procurement analyst to ensure no  existing contracts are in place for the products and/or services being requested. SOP #20 –  Formal Invitation for Quotes (“IFQ”) Process, does not include a step to ensure this is being  completed. Neither SOP requires that this process be documented.  Through discussions with staff, it was determined the department does not issue solicitations  where existing contracts are already in place. However, there is no evidence that the review  procedure was performed to ensure there are no existing contracts prior to issuing a  solicitation.  Original Recommendations, Report dated January 2018: To ensure compliance with the Procurement Manual, SOP #20 – Formal Invitation for Quotes  (“IFQ”) Process, should be enhanced by requiring the procurement analyst to verify that no  existing contract is in place for the products and/or services being requested. Additionally, both  SOP’s should be enhanced to ensure the review of existing contracts is being performed and  documented.