West Seneca needs better spending over sight -

Professional Services – The Town’s procurement policy does not require the solicitation of written proposals or quotations for the acquisition of professional services.

Nevertheless, it is a good business practice that professional services be awarded after first soliciting competition. We reviewed eight claims totaling $106,331 from professional service vendors used by the Town. Although officials told us that they use RFPs for professional services, they were unable to provide us with copies of proposals to support this statement or any documentation that RFPs were used, such as a copy of an RFP or a newspaper notification seeking potential vendors. In addition, we identified several concerns related to the professional service claims we reviewed.

• The Town entered into an agreement with a consultant in November 2013 to conduct an economic and fiscal impact analysis for a potential development project. Officials provided us with an unsigned contract that referenced a fixed fee of $25,000. We were later told that the Board approved increasing this amount to $39,805; however, we were not provided evidence of this approval.

The Town ended up paying the consultant $44,805 which is at least $5,000 more than they agreed to. The last three invoices from the consultant showed an inaccurate amount in the “Invoiced to Date” line and made it appear as though there was still a balance left on the contract. This resulted in the Town overpaying the consultant, believing that there was still a balance remaining. A thorough audit of the claims may have identified the incorrect billing prior to the Town making the overpayments.

The Supervisor stated that she would investigate this and seek a reimbursement if necessary. As of December 2014, the Town had not received the reimbursement.

• The Town hired an engineering firm to provide general engineering services to the Town at a cost not to exceed $120,000.00

In addition to providing general engineering services, the Town also separately contracts with this engineering firm for other miscellaneous engineering projects.

Town officials indicated that they did not solicit proposals from any other engineering firms for a $1.9 million project that began in 2013.

By not requiring proposals from competing engineering firms, the Town may not have gotten the best price or the most favorable terms and conditions for the project. There is also a risk that the Town’s engineering firm may have been given an unfair advantage on this project.

When Town officials and employees do not adhere to the provisions of the procurement policy or properly approve claims prior to payment, they cannot provide reasonable assurance that the lowest price is obtained for the product or service to be acquired.

The Board should:

1. Annually review the procurement policy and periodically
update it, as necessary, to ensure it is consistent with any
statutory requirements and meets the needs of the Town.

2. Adhere to the purchasing resolution which requires Board
approval prior to committing for a purchase that is more than
$5,000.

3. Audit and approve claims prior to payment.

4. Require Town officials to attach the appropriate documentation
to each electronic claim so the Board or Comptroller can
conduct a thorough audit and ensure that officials are following
the Town’s procurement policy.

5. Require Town officials and employees to obtain written and
oral quotes as required by the procurement policy.

6. Consider issuing RFPs for professional services in order to
obtain the desired service with the most favorable terms.

7. Review the invoices from the personal services consultant
and seek reimbursement for any payments that were above
the agreed contract amount.

http://www.osc.state.ny.us/press/rel...072215brelease