Meeting_Body
REVISED
EXECUTIVE MANAGEMENT COMMITTEE
MAY 17, 2018
Subject
SUBJECT: STREAMLINING AUDITS FOR SMALL AND
DISADVANTAGED BUSINESSES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. RECEIVING AND FILING report on streamlining audits for small businesses; and
B. APPROVING the establishment of an Indirect Cost Rate Pilot Program for Small and Disadvantaged Businesses on eligible contracts.
Issue
ISSUE
At the September 2017 Board meeting Director Dupont-Walker requested that staff report back on efforts for streamlining audits for small businesses. Specifically, she requested recommendations and/or results on A) simplifying indirect cost rates; B) reducing the number of multiple audits annually; C) implementing a centralized database; D) list of metrics to measure improvements; and E) toolbox for Small Business Enterprise (SBE) and Disadvantaged Business Enterprise (DBE) to provide feedback.
Discussion
DISCUSSION
Metro recognizes that the SBE/DBE firms may have challenges including limited knowledge to comply with the requirements of Federal Acquisition Regulations (FAR) Part 31, Contract Cost Principles and Procedures which are included in all Metro contracts and limited resources to support the audit efforts. Vendor Contract Management's (V/CM) objective is to provide a level playing field to all suppliers. V/CM will continue to work with Management Audit Services (MAS) to assist, educate and train the SBE/DBE community on all Metro contract requirements, including audit requirements.
A. Simplifying Indirect Cost Rates and Flow-Downs
V/CM Efforts
As part of V/CM's procurement streamlining initiative, V/CM will be improving its RFP contract templates and instructions in the following identified areas specific to audits:
1. Eliminating the use of Form 60 for non-cost type contracts as Form 60 provides detailed costing information which may not be required on all contracts. Non-cost type contract...
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