Metro - File #: 2020-0606

• File #: 2020-0606
• Type: Contract
• Status: Consent Calendar
• File created: 9/1/2020
• In control: Board of Directors - Regular Board Meeting
• On agenda: 10/22/2020
• Title: CONSIDER: A. AUTHORIZING the Chief Executive Officer to execute Modification No. 3 to Contract Nos. PS36627000 through PS36627004, PS36627006, PS36627008, PS36627009, PS36627011 through PS36627018 to exercise the first, one-year option, extending the contract term from January 1, 2021 to December 31, 2021; and increasing the total authorized not-to-exceed amount by $2,288,000 from $6,864,000 to $9,152,000; and B. AWARDING AND EXECUTING task orders for an aggregate not-to-exceed amount of $9,152,000.
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Audit, Budgeting, Contracts, Evaluation and assessment, Procurement
• Related files: 2020-0786

Date	Action By	Action	Result
10/22/2020	Board of Directors - Regular Board Meeting
10/14/2020	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 14, 2020


Subject
SUBJECT: AUDIT SERVICES BENCH FY2018 to FY2022

Action
ACTION: APPROVE CONTRACT MODIFICATION

Heading
RECOMMENDATION

Title

CONSIDER:

A. AUTHORIZING the Chief Executive Officer to execute Modification No. 3 to Contract Nos. PS36627000 through PS36627004, PS36627006, PS36627008, PS36627009, PS36627011 through PS36627018 to exercise the first, one-year option, extending the contract term from January 1, 2021 to December 31, 2021; and increasing the total authorized not-to-exceed amount by $2,288,000 from $6,864,000 to $9,152,000; and

B. AWARDING AND EXECUTING task orders for an aggregate not-to-exceed amount of $9,152,000.

Issue
ISSUE

In May 2017, the Board of Directors approved the establishment of Audit Services Bench contracts (Bench) for a combined total amount not-to-exceed $11,440,000 for a 3-year base term, plus two, one-year options. The Bench provides Management Audit Services (MAS) with consulting and assurance services relating to a broad range of audits and reviews including completion of the Board approved annual audit plan, assistance with CEO/Board requested assignments, staffing support for fluctuating workload requirements, and supports specialized and/or complex audits.

Board authorization is requested to exercise the first one-year option to provide specialized expertise and augmented audit services.

Discussion
DISCUSSION

MAS is required to comply with Generally Accepted Government Auditing Standards (GAGAS). GAGAS has a due professional care standard which requires MAS to bring in outside experts to supplement staff when the area being audited requires technical or specialized skills that are not available within the department. Co-sourcing is typically used to supplement staff expertise with highly specialized audits which exceeds internal capacity and/or resources. Outsourcing is used depending on the complexity of the audit or if the specialized ...