Audit of Bid Specification Requirements for Soliciations, January 2018

5. Standard Operating Procedures related to Request for Informal Quotes . Observation 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. Recommendation 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 Response The Procurement practitioner must verify that a valid certificate of insurance has been obtained from the successful vendor prior to issuing a purchase order. SOP #38 will be revised to indicate same. 11 | A u d i t 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 J a n u a r y 2 0 1 8