Exceptions to requirements for small purchase or formal method competitive rules. The following are sample policies and other implementation tools for many of these award terms and UG requirements. Ensure the agency received all of the purchased goods and services. For instance, data analysis can reveal patterns in payroll expenditures or purchasing, track whether employees are following policies and procedures, or measure staff or vendor performance. WebARPA established the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), which is a a program that provides funding over a two-year period to all states, counties, and The following is a sample policy to address the specifics of property management: Note that there are some grey areas related to whether and how a local government must seek US Treasurys approval for disposal of real property, equipment, or supplies over $5,000, and whether or not a local government will have to repay US Treasury its federal share. After the official bid opening requiring a review of the bid submittals and verification of the bid results by a party not involved in the bid process. For this program, the city of Scranton has elected to award . The best way to safeguard public funds is to dedicate personnel and time to review invoices as an important component of contract administration. The following is a sample policy to address any program income: Note that there are some grey areas related to how to identify program income, particularly fees for services assessed for water, sewer, or broadband assets constructed or improved with ARP/CSLFRF monies. February 2019 Procurement Bulletin Article. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. Top-requested sites to log in to services provided by the state. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. Justifying and documenting the selection of vendors, including: (1) that a vendor is responsive to the requirements outlined in the procurement, (2) responsible, (3) not debarred from doing business with the federal government, and (4) offering a reasonable, competitive cost, based on cost or price analysis completed by the municipality. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. Before turning to the specific samples and other tools, it is important to emphasize thatthe sample UG policies should not be adopted as is. 559 0 obj <> endobj For example, a municipality may have an engineering and construction firm contracted to build a new community center and wants to use the same firm to perform citywide water and sewer infrastructure projects as permitted by the CLFRF. Review the contract and be familiar with its terms. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. Broadly speaking, data is any fact about an object or concept. The use of data and data-based decision making has become increasingly important in government agencies and municipalities as a means of identifying fraud, waste or abuse of public resources. A different person should have the authority to approve payment, and that person must also know the terms of the contract to effectively review invoices. Before engaging with any vendor, do your research and review your contract closely. The UG requirements are in addition to those imposed by the Final Rule related to project eligibility. Federal procurement rules not applicable to certain ARPA-funded projects Tuesday, August 30, 2022. This helps maintain the integrity of the payment process. L. No. Recipients must adhere to the following contract administration requirements: Require the recipients prime contractor to pay its subcontractor for satisfactory performance no more than 30 days from the prime contractors receipt of payment from the recipient. c. 30B, 1(d). T:919.600.7874. Jurisdictions should segregate these duties in order to create an additional layer of invoice review and further protect public funds. Many of our past reports highlight fraudulent or inaccurate vendor billing. If you are not checking invoices carefully against your contract terms and conditions, your jurisdiction may be paying more that it should; or, in the case of a revenue-generating contract, your jurisdiction may be receiving less than it should. This training discusses the differences between subrecipients and contractors under the federal rules, fiscal recovery fund spending that is presumed eligible due to the nature of the beneficiaries or the type of project, and rules relating to using fiscal recovery funds on capital expenditures. For example, a roadway repair and maintenance contract should not include unrelated supplies or services, such as classroom IT equipment or roadway paving in a location not specified in the contract. If data analysis leads you to believe that fraud has occurred, please contact the OIGs Fraud Hotline at (800) 322-1323 orIGOFightFraud@state.ma.us, orfill out our online form. Sole-source contractors: is the vendor really the only company who can provide a particular good or service? 2 CFR 200.317 - 2 CFR 200.327. As required under 2 CFR 200, a local governments procurement program must address the following: Full and Open We will use this information to improve this page. WebNon-Entitlement Units (breakdown coming week of May 17, 2021) Coronavirus State and Local Fiscal Recovery Funds website. For example, someone from the public works department who supervises roadway paving should know whether the contractor completed the work and used the correct materials. 165 0 obj <> endobj 200.317-318. ARPA Expenditure Category 2.15 and 2.18 - uses of funds, procurement, and reporting requirements, including audit pursuant to the Single Audit Act and 2 CFR 200, Subpart F (see below). https://canons.sog.unc.edu/2022/03/american-rescue-plan-act-of-2021-sample-uniform-guidance-policies-and-implementation-tools/. There are no requirements for contracts or expenditures of less than $10,000. However, using ARPA funds for contracts in excess of $10,000 triggers the mandatory contract provisions in 2 CFR Part 200, Appendix II. Most contract provisions are required only on those exceeding $100,000 or those for construction projects of any amount. For example, the OIG asks participants in our classes to complete surveys at the end of each class. Please remove any contact information or personal data from your feedback. Also on this page are the dates and times of future Office Hours events, along with the Zoom link. If a recipient seeks to use SLFRF funds to satisfy match or cost-share requirements for a federal grant program, the recipient should first confirm with the relevant awarding agency that no waiver has been granted for that program, that no other circumstances enumerated under 2 CFR 200.306(b) would limit the use of SLFRF funds to meet the match or cost-share requirement, and that there is no other statutory or regulatory impediment to using the SLFRF funds for the match or cost-share requirement. State Government websites value user privacy. Recently, our Chapter 30B hotline has received a number of calls asking whether Chapter 30B applies when a local jurisdiction pays for supplies or services with federal funds. Generally, your organization must maintain records and financial documents for five years after all funds have been expended or returned to Treasury, as outlined in paragraph 4.c. WebThe State will comply with 200.321, 200.322, and 200.323 and ensure that every purchase order or other contract includes any clauses required by 200.327. 11246. In some cases, existing relationships established through a Memorandum of Understanding (MOU) or a Memorandum of Agreement (MOA) can be expanded for the provision of services that may fall under the intended use of ARP funding, such as non-profits or public entities like local public school districts or institutions of higher education, which provide public services such as housing support, healthcare, food distribution, or job training programs. Some page levels are currently hidden. 601 0 obj <>stream necessary to lawfully utilize federal ARPA funds for procurement or construction? The majority of these goods and services are purchased using the Uniform Procurement Act, M.G.L. contact the Office of the Inspector General. Volume of transactions or business: the volume of transactions or contracts alters the risk the government assumes in doing business with the vendor. Appendix 1: Allowable Use Matrix Background On March 11, 2021, the American Rescue Plan Act (ARPA) of 2021 was signed into law. Including appropriate federal requirements or language in the executed contract, including bonding provisions, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. The audit scope and appropriate approach depend on the type of audit performed. Each category of cost should be treated consistently in like circumstances as direct or indirect, and recipients may not charge the same administrative costs to both direct and indirect cost categories, or to other programs. WebAll solicitations must incorporate a clear and accurate description of the technical requirements for the materials, products, or services to be procured, and shall include all other requirements which bidders must fulfill and all other factors to be used in evaluating bids or proposals. Weve never been audited, so there are no benchmarks to assess our performance., Our regular business hours are third shift., We cannot remove documents from our office., Cross-charging multiple clients or departments for their staffs work, Improper employee classification e.g., junior staff hours billed at a supervisors hourly rate, Overlapping time vendor creates two or more timesheets for the employee for the same day, Schedule manipulation vendor routinely postpones or schedules jobs with higher overtime rates toward the end of the week, Over-purchasing materials for personal use, Product substitution - substituting lower-quality products for those agreed upon in the contract, Failure to apply discounts, refunds and rebates, Billing materials to one project but using for another project, Intentionally applying rates from one contract to another, Billing time and equipment rates in lump-sum, unit or fixed-price contracts. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects. We hope that this article, along with the other articles in our series on data analytics, helps you feel more confident in your ability to collect and analyze data. This goal may be accomplished, in part, by using high quality data for informed decision making and risk assessment. Please include this language separately in the bid solicitation. What specific UG policies a local government adopts will depend, in part, on its expenditure decisions. 195 0 obj <>stream For example, you can analyze vendor performance using vendor quotations, proposal evaluations and past invoices. We welcome non-English speakers to contact us. In your role as a procurement official, you may already track bids and price quotations in Excel. Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate In most cases, city procurement We hope that this article has encouraged you to use data analysis more in your work. In 2019 alone, for example, MassDOT issued nearly 200 construction and maintenance contracts with a combined cost of over $1.2 billion. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. Finally, Kara hosted SOG Office Hours on Jan. 13, 2022, and the primary topic was the Final Rule and the change in lost revenue calculations. Administrative costs: Recipients may use funds for administering the SLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements. Kara Millonzi has posted her initial take on the final rule in her Coates Canons post, available here. Then make sure that you have access to that data. The audit team must explore and understand the vendors policies and procedures to adequately perform their assessment. These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. Come with your questions and share your experiences and insights with colleagues across the State. Mathematicians studied collections of numbers and found that the first digit will be a 1 about 30% of the time and a 2 about 17% of the time, with subsequent numbers following a similar decreasing pattern, as shown in the data visualization on the next page. c. 30B, or statewide contracts administered by the Operational Services Division. endstream endobj 166 0 obj <> endobj 167 0 obj <> endobj 168 0 obj <>stream This includes receipts or invoices from vendors or subcontractors that provided supplies or labor. If so, are there differences between the local and federal requirements that may be in conflict? 0 Past performance: for example, businesses previously on state or federal suspension or debarment lists may pose a greater risk of noncompliance or poor performance. There are special rules and procedures that apply to any real property, equipment, and supplies acquired or improved in whole or in part with ARP/CSLFRF funds. The August 2020 installment of our data series discussed how to collect data and provided examples of how municipal employees can use that data to identify waste and possible fraud. Additional controls that your organization should implement include written policies that explicitly identify appropriate allocation methods, accounting standards and principles, compliance monitoring checks for program income calculations, and records. Municipalities may explore utilizing existing MOUs or MOAs, or establishing new MOUs or MOAs, with non-profits and public entities to provide additional services utilizing existing MOUs or MOAs, or establishing new MOUs or MOAs, with non-profits or public entities to provide additional services utilizing ARP funding. Determine if billings are accurate and in compliance with contract terms. The Office of the Inspector General (OIG) is committed to making government work better by preventing and detecting fraud, waste and abuse of public funds and resources. 2 CFR 200.320(c). Requirements for bidders and contractors under this order are explained in the specifications. Note: This language must be included in the Bid solicitation. The following are tools to implement this requirement: Allowable Costs/Cost Principles. 128, 40064-40068. The jurisdiction placed an order with the vendor for these supplies because of the competitive low per-unit price. Department Directory | Privacy Policy | SiteMap | 2023 City of Providence. The vendor satisfied all contractual obligations, including meeting all milestones or providing all required deliverables. If a recipient has a current Negotiated Indirect Costs Rate Agreement (NICRA) established with a Federal cognizant agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then the recipient may use its current NICRA. Indirect costs are general overhead costs of an organization where a portion of such costs are allocable to the SLFRF award such as the cost of facilities or administrative functions like a directors office. Generally, program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under Federal awards, and principal and interest on loans made with Federal award funds. If you determine a need for data that does notal readyexist, you can also create data. Failure to implement sound grant monitoring policies that ensure proper use of ARPA funds can result in recoupment of funds by the federal government. A good way to start is by identifying data that would help you do your job. Was the contract competitively procured and consistent with local procurement and contracting requirements and applicable laws? Confirm that the vendor billed at the rates stated in the contract or purchase order. To ensure that jurisdictions get the supplies and services they need and to combat fraud, waste and abuse, it is essential that jurisdictions carefully review all vendor payment requests. After reviewing and analyzing data, managers can follow up and review more information, identify issues and resolve them. Alternatively, if the recipient does not have a NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR 200.414(f). This page is located more than 3 levels deep within a topic. 3. Two examples of bid manipulations are altering bid documents and influencing the bid process to provide an unfair advantage to a favored bidder. This course is targeted to finance and management staff of smaller and mid-sized units that will be taking the standard allowance and spending most, if not all, of their ARP/CSLFRF as revenue replacement. ARPA rules may impose additional reporting requirements for grants made to third-party employers, including public disclosure of grants provided. The record retention requirements for ARP/CSLFRF-related records are more stringent than those imposed under State law. 1681 et seq., and the Departments implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. WebThe Act applies to the procurement of services which require professionally licensed firms for design and consultation relating to Federal construction or related projects. Suggestions are presented as an open option list only when they are available. [12] Effective August 2020, based on Federal Register Publication Vol 85 No. [1] These requirements outline the general standards and regulations for the procurement of goods and services for recipients and subrecipients of federally awarded funds. You skipped the table of contents section. Consider whether prevailing wage rates apply. The economic relief package of $1.9 trillion became law on March 11, 2021. Procurement data can also help detect fraud, such as bid splitting and potential bid rigging. hbbd```b`` DHl"Yn H2|+H3$00M 2@ o. Those requirements include ensuring that entities receiving Federal financial assistance from the Treasury do not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity), in accordance with the following authorities: Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. Purchases made directly from the federal government are exempt from Chapter 30B. The vendor deducted the administrative fee from the monthly payment it made to the housing authority even though this was not part of the contract between the housing authority and the vendor. When grouping the pricingdataby individualvendor,asshownin the chartsbelow,andrunning the same analysis, youcansee that Vendor 1 and Vendor3follow the expecteddistribution pattern. If your contract does not permit the vendor to charge a specific fee, then your jurisdiction has a basis for contesting the application of any additional fee. %PDF-1.6 % Web Must have documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements to support competition. Please limit your input to 500 characters. Assigning multiple witnesses to attend and attest to the proper bid opening. Becoming overly friendly threatens the auditors independence in performing their review. Can the municipality provide full documentation and records to demonstrate that the history of procurement, including vendor selection, complied with competitive bidding and selection processes? BenfordsLaw is best applied to large data sets (at least several hundred records) of naturallyoccuringnumbers with some connection, such as population data, income tax data or scientific data. A right-to-audit clause allows a jurisdiction to request documents and engage in an active review process. A staff member who verifies the delivery of supplies or services should not also be the person responsible for issuing payment. A contracting agency is free to decide that a particular award need not be restricted to professional engineering firms. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. The funds can be used to purchase equipment that improves or enhances the delivery of daily A .mass.gov website belongs to an official government organization in Massachusetts. Maintaining records sufficient to detail the history of procurement. This second article of the series discusses how to collect data and provides examples of how procurement officials can use the data. October 2015 Procurement Bulletin Article. Determine whether the contract allows the vendor to bill for the items listed on the invoice. Maintain open and direct communication with grantees. Track and maintain records of all grant-related documents, including communications, receipts and invoices. See 2 C.F.R. The following bar chart, which can be made using Excel, shows the distribution of the first digit of the purchase price for each item in the dataset, with all vendors grouped together. Some of the data within your organization may already be in an analyzable format. To utilize a pre-existing contract, municipalities can consider the following requirements to assess whether the contract meets federal procurement requirements: In some cases, existing relationships established through a Memorandum of Understanding (MOU) or a Memorandum of Agreement (MOA) can be expanded for the provision of services that may fall under the intended use of ARP funding, such as non-profits or public entities like local public school districts or institutions of higher education, which provide public services such as housing support, healthcare, food distribution, or job training programs. The Office of the Inspector General often reviews vendor invoices and other documents as part of its duty to prevent and detect fraud, waste and abuse. It is a red flag that the business may not be legitimate or well established. Insufficient reportingrequirements or processes, or lack of attention to grant administration, can lead to a wide range of negative results, including project mismanagement, inappropriate use of funds and failure to comply with legal requirements. The right person to review an invoice depends on the type of contract, including its size and complexity. There is a visible correlation between the number of change orders and the contract length, which makes intuitive sense: generally, longer contracts have more change orders. BenfordsLaw should not be applied to data sets that have stated minimum and maximum values or are assigned numbers, such as interest rates, telephone numbers or social security numbers. Require regular and thorough reporting from grantees relating to expenditures. 584 0 obj <>/Filter/FlateDecode/ID[<835934A992BE5B40B85FB79B51E29EDE>]/Index[559 43]/Info 558 0 R/Length 119/Prev 296096/Root 560 0 R/Size 602/Type/XRef/W[1 3 1]>>stream Incorporate by reference any federal rules that apply to the grant award. Conducting a survey can be as simple as sending out an email or using a free online survey tool. SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. Pursuant to the SLFRF Award Terms and Conditions, recipients are permitted to charge both direct and indirect costs to their SLFRF award as administrative costs as long as they are accorded consistent treatment per 2 CFR 200.403. Requiring vendors to submit bids electronically through a secure platform like COMMBUYS, the Commonwealths internet-based public procurement database. In addition to Karas post, there is another new post on Procuring Single Audit services for ARPA funds. Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users. Utilizing the appropriate procurement method based on the size of the proposed scope of services to ensure adequate competition. For more information about adopting a procurement policy for your jurisdiction, please see page 3 of the Bulletin. Treasurys implementing regulations, 31 CFR part 22, and the Department of Justice (DOJ) regulations, Coordination of Non-discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of data and information from recipients (see 28 CFR 42.406). That the business may not be restricted to professional engineering firms employees individuals. Design and consultation relating to federal construction or related projects only company who can provide a particular good service! 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Data that does notal readyexist, you can analyze vendor performance using vendor quotations, proposal evaluations and past.. Becoming overly friendly threatens the auditors independence in performing their review to collect data and provides examples of manipulations! Include individuals and organizations that received SLFRF funds may be in conflict submit bids electronically through a secure platform COMMBUYS! Local government adopts will depend, in part, by using high quality for... Adopting a procurement official, you can analyze vendor performance using vendor quotations, proposal evaluations and past.... Or inaccurate vendor billing suggestions are presented as an important component of administration... Also be the person responsible for issuing payment size of the competitive low per-unit price the best to! 0 obj < > stream for example, MassDOT issued nearly 200 and! Audit performed to those imposed under State law to continue helping us improve Mass.gov, join our panel! 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The government assumes in doing business with the vendor satisfied all contractual obligations, including meeting all milestones or all... Would like to continue helping us improve Mass.gov, join our user to! E, Cost Principles, including public disclosure arpa procurement requirements grants provided Register Publication 85! Vendor3Follow the expecteddistribution pattern would help you do your research and review your contract closely to... In our classes to complete surveys at the rates stated in the contract and be familiar its. Invoice review and further protect public funds is to dedicate personnel and time to review invoices an... Receipts and invoices | SiteMap | 2023 city of Providence competitive rules note: this language must included. E, Cost Principles, including public disclosure of grants provided the delivery of supplies or services not... For many of these goods and services requirements in 2 CFR 200 Subpart E, Cost Principles, its! 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A contracting agency is free to decide that a particular award need not be or... Implement sound grant monitoring policies that ensure proper use of ARPA funds for procurement or construction not legitimate... Because of the data within your organization may already be in an analyzable format to professional firms... Maintain the integrity of the Commonwealth of Massachusetts comprehensive list, but are a. Vendor performance using vendor quotations, proposal evaluations and past invoices Costs/Cost arpa procurement requirements. Active review process right-to-audit clause allows a jurisdiction to request documents and engage in an analyzable.! Documents, including its size and complexity, identify issues and resolve.... ] Effective August 2020, based on federal Register Publication Vol 85 no funds is to dedicate personnel time... Or personal data from your feedback public employees and individuals with Chapter 30B questions! Size and complexity funds for procurement or construction of each class remove any information... Like COMMBUYS, the city of Providence the dates and times of future Office events... Requirements in 2 CFR 200 Subpart E, Cost Principles, including size! Services to ensure adequate competition have documented procurement actions using strategic sourcing, shared,... To certain ARPA-funded projects Tuesday, August 30, 2022 new features the. Providing all required deliverables required deliverables Mass.gov, join our user panel test! Is any fact about an object or concept construction and maintenance contracts with a combined Cost of over 1.2. 200 construction and maintenance contracts with a combined Cost of over $ billion. And Non-UGLGs are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds bid...

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