arpa procurement requirements

There are several techniques you could use to identify vendors to audit. Treasury intends to provide additional guidance regarding program income and the application of 2 CFR 200.307(e)(1). When was the last time your client revised their procurement contracts? State Government websites value user privacy. 11 Uniform Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. As many of you already know, the US Treasury last week issued the Final Rule on the funds granted to state and local governments by the American Rescue Plan Act. An official website of the Commonwealth of Massachusetts, This page, OIG Bulletin Articles Related to the Use of ARPA Funds, is, OIG Bulletin Articles Related to the Use of ARPA Funds. Massachusetts Executive Order 195 outlines audit and oversight requirements related to vendor contracts. 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. The economic relief package of $1.9 trillion became law on March 11, 2021. A contracting agency is free to decide that a particular award need not be restricted to professional engineering firms. WebThe Department of Education posted final requirements on ARPA ESSER in July 2021. While data includes these things, data also includes things such as time sheets, bank statements, survey responses and water meter readings. Procurement data can also help detect fraud, such as bid splitting and potential bid rigging. Implement internal controls to prevent fraud, waste and abuse. endstream endobj startxref April 11, 2022: Basics of Implementing the Standard Allowance. The regulations related to allowable costs and cost principles are complex. Counties with allocations under $10 million may spend their entire allocation on government services, but they may If a vendor is not registered beware. Therefore, when your jurisdiction uses federal funds to pay for supplies or services, you need to check your federal funding documents and any other federal guidance applicable to the type of funding you received to determine which procurement laws to follow. ) or https:// means youve safely connected to the official website. People have varying levels of comfort and expertise in using data, and these articles are designed to assist beginners and experts alike. SLFRF funds may be, but are not required to be, used along with other funding sources for a given project. If you need assistance, please contact the Office of the Inspector General. Becoming overly friendly threatens the auditors independence in performing their review. All public organizations rely on vendors to provide the supplies and services needed to operate effectively and efficiently. We welcome non-English speakers to contact us. Under the American Rescue Plan Act (ARPA), passed by the federal government in March 2021, Massachusetts state, county, tribal and local entities are receiving federal aid to respond to the public health and economic impacts of the public health emergency created by the COVID-19 pandemic. The metrics plotted show the number of change orders (orders that modify contract terms) and the contract length in months. The first step in implementing a vendor audit program is determining who to audit. Please include this language separately in the bid solicitation. %%EOF Jurisdictions should segregate these duties in order to create an additional layer of invoice review and further protect public funds. S.aR8.:h;"S=uV#7SS:]=i++_u}~}_y_yR,_+#$AqYoX%F"YC CV8OEG?+7yOet~f4e&xfqgP*1:bWn5lu-J;[:gqG5SfJ Qbu8CZq|+gBjUC5.P06. 5=;I?s=pCOsV+k 4^ "6!p ~|: 1 GW%kO &)1dwO1(SEQqm2(Rh !3I`eUb&. Next, your organization will need to evaluate each subrecipients risk of noncompliance based on a set of common factors. Recipients that receive an aggregate amount of federal financial assistance in a given fiscal year that exceeds the Single Audit threshold are subject to the requirements in 2 CFR 200 Subpart F, Audit Requirements, unless otherwise specified in program-specific guidance. Use of this blog post for commercial purposes is prohibited. Recipients should note that NEUs and Non-UGLGs are not subrecipients under the SLFRF program. [1] Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds: Guidance on Recipient Compliance and Reporting Responsibilities, at 8, available at: https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf. For example, in the scatter plot below, each of the points represents one contract. This helps maintain the integrity of the payment process. 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. contact the Office of the Inspector General. Properly documented. The contract did not entitle the vendor to charge an administrative fee and the housing authority rightly refused to pay it. Process compliance audits evaluate whether the vendor is doing what it was hired to do. WebOWRB ARPA Engineering Procurement Process . Maintain open and direct communication with grantees. The vendor claimed that the lower per-unit price was only for bulk purchases. Are there special requirements for capital We use data every day without realizing it. %PDF-1.6 % Two significant areas that did not change are the applicability of Uniform Grant Guidance to ARPA funds and the federal audit requirements over these funds. Track and maintain records of all grant-related documents, including communications, receipts and invoices. Now is the time for school districts and municipalities across the Commonwealth to develop bid documents that are tailored to address the additional compliance requirements Then make sure that you have access to that data. (A) statutory restrictions under the ARPA, which include: offsetting a reduction in net tax revenue, and deposits into pension funds, and (B) other restrictions on use, which include: debt service and replenishing reserves, settlements and judgments, and general restrictions. (See Final Rule pp. When people think of data, often electronic spreadsheets, number-crunching and data warehouses come to mind. The Assistance Listing is available on SAM.gov. Incorporate by 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. If the data is not in one of these formats, do not despair! We will update the policy if/when we receive more guidance from US Treasury. WebDesigns and oversees valid and systematic programs for assessing the effectiveness of talent acquisition activities that meet the organization's needs. Final approval for sole source procurement requests in most states resides with the Chief Procurement Official. The expenditures for each eligible project are comprised of cost items. ARPA-funded projects must also adhere to North Carolina state law, The course will have three parts, including brief overview videos, a 1-day live (Zoom) workshop, and extended daily Zoom Help Desk Office Hours the last two weeks of April (to help with implementation issues and completion of the Project & Expenditure report due by April 30). Typical cost items include compensation and fringe benefits, materials and supplies, equipment and other capital, consultants/professional services, audits, communications, insurance, maintenance and repair, and rental costs. 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. Once the audit team selects the type of audit to perform, the team must clearly prepare an audit plan and outline the expected audit procedures. 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. WebRescue Plan Act (ARPA), Sections 602(b) and 603(b) of the Social Security Act, Pub. This policy sets up procedures for making project requests, approving those requests, and documenting that approval and any required justifications and other records. The following is a sample policy: Recordkeeping Requirements. 128, 40064-40068. Pertinent documents may include invoices, payment information, purchase orders, requisitions, general ledgers, cash disbursements, check registrars, transactional data histories and contract bid documents. Please take a moment to participate in our Community Satisfaction Survey. Now that you understand some specific techniques for visualizing and analyzing data, we encourage you to apply these techniques to procurements or other business decisions facing your jurisdiction. 2. WebNon-Entitlement Units (breakdown coming week of May 17, 2021) Coronavirus State and Local Fiscal Recovery Funds website. 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. For supply contracts, for example, jurisdictions should verify that the vendor delivered the correct items in good condition and in the correct quantities. endstream endobj 166 0 obj <> endobj 167 0 obj <> endobj 168 0 obj <>stream In order to carry out its enforcement responsibilities under Title VI of the Civil Rights Act, Treasury will collect and review information from non-Tribal recipients to ascertain their compliance with the applicable requirements before and after providing financial assistance. Please remove any contact information or personal data from your feedback. Further, because it did not conduct a public procurement, the jurisdiction lost the opportunity to receive revenue from the contract. The American Rescue Plan will deliver $350 billion for eligible state, local, territorial, and Tribal governments to respond to the COVID-19 emergency and bring back jobs.. Navigating all these requirements may be overwhelming, particularly for local governments with limited staff capacity. For that reason it is not included in the Drop-in document. This blog post highlights the UG requirements and provides several sample policies and other implementation tools. 3) Consider publishing all sole source requests for public notice. WebDepending on the site host organizations procurement requirements, a formal solicitation process may be needed to purchase and install charging infrastructure. Suggestions are presented as an open option list only when they are available. WebThe City of Detroit Office of Contracting and Procurement (OCP) requests proposals from qualified Respondents to provide procurement supportive services including reviewing &creating scopes of work, creating bid solicitations, contract development, contract negotiations and preparation of critical See more Buyers Requirements The American Rescue Plan Act (ARPA) has brought millions in public dollars to cities, towns and other public entities to respond to the COVID-19 pandemic and its economic consequences. The Office of the Inspector General has compiled the following Bulletin articles related to using ARPA funds, including articles about paying for supplies and services with federal funds, invoice review, data analytics and vendor audits. x@AP,(Qm -R`PF%LGd8X1`ol: +t0@]-]~W,4 XC! $@a 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 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. Recipients should consult the final rule for further details if they seek to utilize SLFRF funds as a match for these projects. clarified that funds made available under the American Rescue Plan Act (ARP) Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) are subject to federal procurement requirements outlined in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), found at Title 2 of the Code of Federal Regulations, Part 200 (2 CFR 200). We hope that this article has encouraged you to use data analysis more in your work. Additional information about the definition of subrecipients is available in the section Distinguishing Subrecipients versus Beneficiaries. Procurement and contracting requirements are in place as best practices to mitigate the risk of fraud, waste, or abuse of federal funds and are designed to ensure that federally funded contracts are competitive and fair. If the vendor has subcontracted out any work, the audit team should also distinguish whether it will be reviewing the contractors or subcontractors performance. Local governments should review the requirements, compare them to their current policies and procedures, and consult with legal counsel to evaluate. In addition, we recommend that all ARPA awardees review 2 CFR Part 200 Subpart D, as this section describes the requirements most applicable to local governments. WebGeneral Requirements for Procurement Programs . T:919.600.7874. Prior to beginning the audit, the team should provide logistical information to the vendor in order to combat potential pushback throughout the audit. These guidelines are not a comprehensive list, but a reminder that organizations should remain cautious when disbursing funds. Massachusetts jurisdictions received over $25 billion through ARPA. Also, remember the following: 1. Consistent with 2 CFR 200.311 and 2 CFR 200.313, any equipment or real property acquired using SLFRF funds shall vest in the non- Federal entity, consistent with any guidance that Treasury may issue. These awards are as follows: And always be vigilant in reviewing invoices for appropriate charges as a standard part of your contract administration process. Purchases made directly from the federal government are exempt from Chapter 30B. procurement, with 2 CFR 200.319(b) addressing engineering services procurement guidelines. Check to make sure that the supplies and services that the vendor provided met the contract terms and followed the defined scope of work. A local government must work with its attorney(s) to review each sample for legal compliance and edit to adapt to the specifics of your local government. We now understand that the procurement requirements apply to your audit procurement regardless of the source of funds that pay the audit fees. As required under 2 CFR 200, a local governments procurement program must address the following: Full and Open For example, a recipient may provide a subaward to a nonprofit to provide homeless services to individuals experiencing homelessness. Webthe provision of police, fire, and other public safety services (e.g., purchasing a fire truck or police vehicles, purchasing other equipment, covering salaries of public safety personnel). 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. The procurement code mandates city responses be mailed to the protestor and all other applicants so as to inform them of the ability to appeal the decision related to the protest. The results of the survey can be transferred to a spreadsheet. Remember to check debarment lists, as well as the Secretary of the Commonwealths business registration database or a local municipal clerks office to determine if a business is properly registered to conduct business within Massachusetts. Our team excels at identifying, negotiating, procuring, and delivering quality products and services to customers doing business in various European locations and not only. [12] Effective August 2020, based on Federal Register Publication Vol 85 No. All rights reserved. Your local jurisdiction creates a demand for towing services because local officials have the authority to have vehicles towed when there are parking violations on public property or drivers need emergency roadside assistance. As indicated above, there may be ways to strategically spend the ARP/CSLFRF to minimize (but not eliminate) a local governments UG burden. The bar chart shows that the purchase prices, when grouped together, closely follow the expected distribution of numbers according toBenfordsLaw. A local government should craft its policies and procedures so that they can be reasonably implemented by its staff. With the addition of the standard allowance, authorizing many NC local governments to expend their entire ARP/CSLFRF allocation for almost any purpose authorized by state law, counties and municipalities across the state have an even greater opportunity to make the best strategic investments for their communities with these one-time funds. To promote accountability, ARPA includes requirements for the administration, monitoring and reporting of funds. 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. ARPA Subgrantee Agreement Template Two Payment (Advance, Reimbursement) rev11.3.22 (DOCX) ARPA Subgrantee 0 Each of the considerations above, as well as operation and maintenance All other recipients must follow 2 CFR 200.318, General procurement standards, through 200.327, Contract provisions. 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. 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. Once the data has been transformed into auser-friendlyformat, it can be used in a variety of ways to assist with future procurements and other business decisions. Historical data regarding the use of a supply or service can help procurement teams project future procurement needs and build a more effective and accurate budget. The policy should be drafted with Chapter 30B principles in mind and should ensure that you allow for an open, fair and competitive process. Some page levels are currently hidden. As an example, the Infrastructure Investment and Jobs Act provides that SLFRF funds may be used to meet the non-federal match requirements of authorized Bureau of Reclamation projects and certain broadband deployment projects. For example, per 2 CFR 200.425, a reasonably proportionate share of the costs of audits required by the Single Audit Act Amendments of 1996 are allowable; however, costs for audits that were not performed in accordance with 2 CFR Part 200, Subpart F and the Compliance Supplement are not allowable. For example, the city of Boston used ARPA fiscal recovery funds to award more than $3.4 million in grants to 192 local arts and cultural organizations. 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. There are many reasons to audit contracts with vendors and suppliers. Taking incremental steps and continually finding areas for improvement will create a robust data program and help you make informed, data-driven decisions. Conducting a survey can be as simple as sending out an email or using a free online survey tool. MCPPO Online Class Technical Specifications, View MCPPO schedule and class information, contact the Office of the Inspector General, Presumed Eligible Fiscal Recovery Fund (FRF) Spending. Our confidential hotline is for public employees and individuals with Chapter 30B procurement questions. The four primary reasons to conduct audits of vendors and supplies are to: To set expectations from the outset and to ensure that your jurisdiction has a right to audit include a right-to-audit provision in contracts. The procedures should also incorporate the governing boards role related to project approval and budget adoption/amendment. For example, information from purchase descriptions, vendor quotations, proposal evaluation forms and invoices contain many data points. 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). Suspension Immediate Need A temporary measure; there is a twelve month limit Usually used pending the completion of investigation or legal proceedings Based upon adequate evidence, usually an indictment Debarment Usually three years in length Please remove any contact information or personal data from your feedback. (For instance, the Department of Justice (DOJ) publishes a guide to procurements using DOJ grant funds.). Update: On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule, which governs the eligible uses of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) under the American Rescue Plan Act (ARPA).The Final Rule makes several key changes to the Interim Final Rule, including expanding the eligible uses of However, there is one contract, indicated by the red circle, which hasa large number ofchange orders when compared to the length of the contract. Costs must follow the requirements in 2 CFR 200 Subpart E, Cost Principles, including procurement standards. Recipients should refer to the Assistance Listing for details on the specific provisions of the Uniform Guidance that do not apply to this program. It also will identify grey areas that may require further legal scrutiny before finalizing expenditure decisions. If not, many of the bid documents your jurisdiction retains can be used as data sources. 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. Local governments should look at this and other ways to maximize the benefit of the ARP/CSLFRF while minimizing its administrative burden. Please limit your input to 500 characters. Bid manipulation can also include allowing a vendor to submit bid documents after the public deadline or disclosing offers made by one vendor to another before the bids are opened publicly. Salaries and Expenses: In general, certain employees wages, salaries, and covered benefits are an eligible use of SLFRF award funds. Data visualization and analysis can be particularly useful in identifying and preventing potential fraud, waste and abuse of public resources. October 2017 Procurement Bulletin Article, Recently, our Office learned that a vendor included administrative fees in invoices issued to a housing authority under a revenue-generating contract. The team needs the vendors support in order to get access to records and personnel, as well as to take action on findings. Volume of transactions or business: the volume of transactions or contracts alters the risk the government assumes in doing business with the vendor. Please let us know how we can improve this page. Maintaining clear policies governing conflicts of interest for employees involved with developing solicitations, evaluating or awarding contracts, or managing or monitoring vendors. As a result, your jurisdiction should consider using a competitive procurement process to ensure that there is open and fair competition with responsible vendors for these kinds of service contracts. Determine if billings are accurate and in compliance with contract terms. Each recipient should review program requirements, including Treasurys final rule and the recipients Award Terms and Conditions, to determine and record eligible uses of SLFRF funds. necessary to lawfully utilize federal ARPA funds for procurement or construction? The following sample policy may be appended to your local governments regular records retention policy. A helpful starting point is to pull data from current and historical sources and compile it into a more data-friendly format, such as an Excel spreadsheet file. If this fails, contact your local jurisdictions legal counsel because the vendor may have breached the contract. WebPROCUREMENT Non-federal entity MUST have written standards and procedures. You can transform information from historical and external sources into usable data, and you can create new data. 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. Also on this page are the dates and times of future Office Hours events, along with the Zoom link. WebProcurement Recipients are responsible for ensuring that any procurement using SLFRF funds, or payments under procurement contracts using such funds, are consistent with the procurement standards set forth in the Uniform Guidance at .
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