Metro - File #: 2017-0252

• File #: 2017-0252
• Type: Contract
• Status: Passed
• File created: 4/5/2017
• In control: Finance, Budget and Audit Committee
• On agenda: 5/17/2017
• Final action: 5/25/2017
• Title: AUTHORIZE the Chief Executive Officer to: A. AWARD five-year fixed rate bench Contract Nos. PS36627000 through PS36627018, with the firms listed in Attachment A, for Management Audit Services, for a not-to-exceed amount of $6,864,000 for the base three-years, effective July 1, 2017 through June 30, 2020, plus $2,288,000 for each of the two, one-year options, for a combined total amount not to exceed $11,440,000, subject to resolution of protest(s), if any; and B. EXECUTE Task Orders under these Contracts for audit services in a total amount not-to-exceed $11,440,000.
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Audit, Budgeting, Contracts, Evaluation and assessment, Financial Audit, General Overhead (Project), Procurement, Project management

Date	Action By	Action	Result
5/25/2017	Board of Directors - Regular Board Meeting
5/17/2017	Finance, Budget and Audit Committee

Meeting_Body
REVISED
FINANCE, BUDGET AND AUDIT COMMITTEE
MAY 17, 2017


Subject/Action
SUBJECT: AUDIT SERVICES BENCH FY2018 TO FY2022

ACTION: AWARD BENCH CONTRACTS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to:

A. AWARD five-year fixed rate bench Contract Nos. PS36627000 through PS36627018, with the firms listed in Attachment A, for Management Audit Services, for a not-to-exceed amount of $6,864,000 for the base three-years, effective July 1, 2017 through June 30, 2020, plus $2,288,000 for each of the two, one-year options, for a combined total amount not to exceed $11,440,000, subject to resolution of protest(s), if any; and

B. EXECUTE Task Orders under these Contracts for audit services in a total amount not-to-exceed $11,440,000.

Issue
ISSUE

Management Audit Services Department (Management Audit) has a recurring need for consulting and assurance services provided by certified public accounting (CPA) firms and other specialty firms. They provide consulting 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 conduct of large and/or complex audits. The Multiple Award Agreement (bench) is necessary for two primary reasons: to provide specialized expertise and to augment Metro staff.

Discussion
DISCUSSION

We are required to comply with Generally Accepted Government Auditing Standards (GAGAS). GAGAS has a due professional care standard which requires Management Audit 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 when a sudden influx of time sensitive audits exceeds available resources. Outsourcing can be used depending on the complexity of the audit or if the specialized skillsets a...