The Franklin County Sheriff’s Office Had Deficiencies in Its Administration of $647,541 in Contracts.

The audit did not identify any inappropriate purchases by FCSO, but did find $647,541 of goods and services were not properly procured.

Overview

During our audit period, the Franklin County Sheriff’s Office (FCSO) did not properly administer certain aspects of its contracting process regarding the procurement of $647,541 in goods and services. Specifically, our review of 25 vendor contract files identified issues with 8 files (32%), as follows:

• In three vendor contract files that represented contracts totaling $313,847, expenditures over $50,000 did not have evidence of Requests for Response being posted on Comm-PASS¹ or in the Goods and Services Bulletin² or distributed to at least three potential bidders.
• In two vendor contract files that represented contracts totaling $35,708, expenditures between $10,000 and $50,000 did not have evidence that FCSO requested verbal quotes from at least three qualified bidders.
• In three vendor contract files that represented contracts totaling $297,986, FCSO appeared to have determined that the contracts were exempt from competitive procurement but had not included Competitive Procurement Exception Explanation Forms documenting why the vendor contract files qualified for exceptions. Two of the vendors performed legal services, and one performed computer software maintenance.

As a result, the Commonwealth cannot be certain that these procurements were conducted openly and fairly or that FCSO obtained these goods and services at the best possible value.

Authoritative Guidance

The “Thresholds for [Request for Response] Distribution to Potential Bidders by Sheriff’s Office” (an attachment to FCSO’s General Order 340, “Policy Governing the Procurement of Commodities and/or Services”) requires that, for expenditures totaling $50,000 or more, a Request for Response be posted on Comm-PASS or in the Goods and Services Bulletin or distributed to three potential bidders. For expenditures totaling between $10,000 and $50,000, FCSO is required to request verbal quotes from at least three qualified vendors.

Section .06 of General Order 340 lists FCSO’s contract documentation requirements for all purchases:

All acquisitions of Commodities and/or Services must be competitively procured unless the acquisition qualifies as one of the exceptions listed under section .05, Competitive Procurement Exceptions, of this policy.

Section .05 of General Order 340 details the list of exceptions. Specifically, FCSO did not comply with the following items:

11.  The services of attorneys. . . . (Include the Office of the Sheriff’s Competitive Procurement Exception Explanation Form in the vendor procurement file.) . . .

14.  The procurement of . . . software maintenance without competition when, after reasonable investigation, the Sheriff’s Office determines in writing that only one practicable source for the required . . . service exists. . . . (Include the Office of the Sheriff’s Competitive Procurement Exception Explanation Form in the vendor procurement file.)

Reasons for Noncompliance

FCSO management could not provide a reason that these deficiencies occurred. However, FCSO has not established any monitoring controls to ensure that established policies and procedures are followed.

Recommendation

FCSO should establish monitoring controls over its contracting process to ensure that established policies and procedures in this area are followed.

Auditee’s Response

We are focused on improving our processes to ensure we have the appropriate documentation in the individual vendor files to prove we follow our own procurement policies. Our policy is clear on the need for competitive bids, quotes and allowable exemptions, however we haven’t been diligent in including the appropriate paperwork in our purchasing files. We will be providing additional oversight and training to ensure compliance with process and documentation requirements.

Auditor’s Reply

Based on its response, FCSO is taking measures to address our concerns on this matter.

1.    Comm-PASS was the previous name of the state online procurement platform, now called COMMBUYS. According to mass.gov, COMMBUYS “links public purchasers in search of products and services with vendors who are able to provide them.”

2.    According to the website of the Secretary of the Commonwealth, “The Goods and Services Bulletin is a weekly publication containing solicitations for the procurement of commodities and services.”

Date published:	September 26, 2019