Purpose

The objectives of our examination was to determine whether DMNA conducted appropriate procurements, paid appropriate prices, and received the quality and quantity of goods and services it procured during its response to Superstorm Sandy.

Background

DMNA assists State and local first responders with emergencies such as Superstorm Sandy.We considered payment amounts and other risk factors to select and review $320,579 in fuel purchases from eight vendor.

Key Findings

We found that DMNA did not follow, or did not have the documentation to support it followed, State procurement requirements. In particular, DMNA lacked documentation to support the reasonableness of the prices paid and how it selected vendors. Specifically, we determined DMNA collectively paid eight vendors up to $66,081 more than necessary for fuel. In addition, we found DMNA lacked documentation to support: (i) the reasonableness of prices paid for the procurement of services from the ten vendors in our examination, (ii) the selection of nine of these ten vendors, and (iii) in some instances, the number of labor hours charged and whether vendors paid the appropriate prevailing wage rates to their employees.

Key Recommendations

• Conduct procurements in accordance with all applicable laws, rules, and regulations.
• Review fuel charges and recover overcharges as appropriate.
• Collect and maintain appropriate documentation to support the selection of vendors and reasonableness of prices paid, including but not limited to: quotes, records supporting hours worked by vendors, centralized contract pricing lists, and records supporting payment of prevailing wage rates.
• Refer to the Department of Labor the vendors that did not provide evidence to support they paid prevailing wages to their workers.