Acquisition Management: Controls and Monitoring for Sole-source Purchase Orders Need to Be Strengthened

Submitting OIG:

Smithsonian Institution OIG

Date Issued:

Tuesday, March 12, 2024

Agency Reviewed / Investigated:

Smithsonian Institution

Submitting OIG-Specific Report Number:

OIG-A-24-06

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
OIG-24-06.pdf	19.72 MB

Recommendation Number	Recommendation Status	Significant Recommendation
OIG-A-24-06-01	Open	Yes
Reinforce that OCon&PPM staff adhere to the policy that sole-source justification forms must be reviewed and approved by unit Procurement Delegates.
OIG-A-24-06-02	Open	Yes
Develop and implement written policies and procedures for purchase orders that are modified to exceed $10,000, the sole-source justification threshold.
OIG-A-24-06-03	Open	Yes
Update training materials for Procurement Delegates approving the sole-source justification forms and develop guidance to assist requestors completing the forms, including the following: a. examples for well-justified sole-source purchases for each of the four allowable categories for both goods and services and b. detailed examples of what constitutes an adequate justification
OIG-A-24-06-04	Open	Yes
Revise and implement procedures to conduct compliance reviews and report to the Under Secretary on the results of these reviews, including the following: a. determining whether sole-source justification forms were adequately justified and properly approved and b. ensuring the accuracy of the competition data in the accounting system.
OIG-A-24-06-05	Open	Yes
Develop and implement monitoring procedures to identify trends in sole-source purchasing. This could include (1) determining the specific reports that will be used for monitoring sole-source purchase orders, (2) establishing the frequency of the reports, and (3) identifying a list of individual directors and management officials who will receive reports. In addition, develop clear guidelines on what constitutes discrepancies and how they are identified, addressed, documented, and retained for future reference.
OIG-A-24-06-06	Open	Yes
Revise the procurement procedures manual to clarify the responsibility of unit Procurement Delegates to review purchase orders and to ensure the accuracy of the data entered in the accounting system.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

OIG-A-24-06-01

Open

Yes

Reinforce that OCon&PPM staff adhere to the policy that sole-source justification forms must be reviewed and approved by unit Procurement Delegates.

OIG-A-24-06-02

Open

Yes

Develop and implement written policies and procedures for purchase orders that are modified to exceed $10,000, the sole-source justification threshold.