Audit Report on the Department for the Aging’s Vendor Performance Evaluations

Executive Summary

The Department for the Aging (DFTA) is responsible for providing elder services through senior centers, naturally occurring retirement communities, case-management and home-care agencies, home-delivered meal programs, and mental health and friendly visiting programs. DFTA contracts with vendors to provide goods and services on its behalf and to support its operations and, in doing so, is required to follow the Procurement Policy Board (PPB) Rules.

Section 4-01(b) of the PPB Rules states,

A performance evaluation shall be done no less than once annually except that for procurements of goods by competitive sealed bid other than sealed bids awarded based on best value and procurements below the small purchase limits, an evaluation report shall be prepared only in cases of deficient performance.

Further, the PPB Rules do not apply to certain procurements as specified in §1-02(d) and certain transactions specified in §1-02(f), “provided [in the latter case] the ACCO determines that the process to be followed is in the best interest of the City and states the basis therefor.” The transactions specified in §1‑02(f) include government-to-government contracts, the provision of work or services by State-regulated public utilities, State- or federally-regulated cable television and other public services, professional memberships, and subscriptions.

The Mayor’s Office of Contract Services (MOCS) facilitates and oversees citywide procurement activities. The Director of MOCS is the City Chief Procurement Officer (CCPO) and is responsible for coordinating and overseeing the procurement activity of Mayoral agency staff. Within each Mayoral agency, the Agency Chief Contracting Officer (ACCO) is responsible for organizing and supervising the procurement activity of subordinate agency staff in conjunction with the CCPO.

In 2017, MOCS launched the Procurement and Sourcing Solutions Portal (PASSPort), an online portal, to facilitate the City’s procurement process and allow agencies to document and monitor vendor performance evaluations (PEs) in one centralized system. The PASSPort Performance Evaluations for Agencies user manual states that, “PASSPort will create a draft PE for the contract 12 months after the contract start date.”

During Fiscal Year 2018, DFTA was responsible for evaluating vendors’ performance for 448 contracts that were registered with the Comptroller’s Office, with a combined maximum value of $854 million.

Audit Findings

DFTA generally did not annually evaluate and document vendor performance in accordance with the PPB Rules. Based on our review of the above-mentioned 448 contracts, DFTA did not complete PEs for 10 contracts (2.2 percent) and did not complete PEs timely for 433 contracts (96.7 percent). DFTA completed PEs timely for only 5 contracts (1.1 percent).

DFTA failed to evaluate vendors’ performance for contracts at all or timely because it did not ensure that PEs were in fact created on contract anniversary dates, improperly requested a PE exemption for one contract, did not adequately monitor staff to ensure they completed PEs, and did not establish adequate policies and procedures for PEs.

Audit Recommendations

Based on our findings, we made the following five recommendations to DFTA:

• DFTA should ensure that PEs are completed and finalized within 90 days of the contract anniversary date;
• DFTA should review PASSPort data regularly to ensure that it includes data for all contracts except for procurements of goods by competitive sealed bid other than sealed bids awarded based on best value and procurements below the small purchase limits;
• DFTA should request exemptions only for contracts that meet the PPB Rules’ PE exemption criteria and contracts for which services or goods were not provided during the evaluation period;
• DFTA should ensure that the ACCO and ACCO staff monitor PE completion and periodically remind staff to complete PEs; and
• DFTA should develop formal written policies and procedures, communicate them to staff, and train staff on their responsibilities for completing PEs including, but not limited to, completion timeframes, and monitoring and follow-up activities. 

Agency Response

DFTA provided a Corrective Action Plan, which it stated “fully agrees with each of your recommendations.”