A Performance Audit
An Audit Report on Selected Contracts at the Historical Commission
The Historical Commission (Commission) complied with some planning, procurement, and formation requirements for the two contracts audited. The Commission also adequately performed oversight activities related to the construction progress of the San Felipe Museum contract. However, the Commission did not consistently require those involved in the evaluation and procurement of the contracts audited to sign conflict of interest forms.
The Commission Did Not Consistently Require Those Involved in the Evaluation and Procurement of the Contracts Audited to Sign Conflict of Interest Forms
The Commission ensured that all purchasing staff signed annual conflict of interest forms. However, for the two audited contracts, the Commission did not require any evaluation team members or members of its governing board to sign conflict of interest forms, as required by Texas Government Code, Sections 2262.004 and 2261.252. In addition, the Commission did not have a process in place to identify who should complete a conflict of interest form during the procurement process or throughout the term of the resulting contracts.
The Commission Did Not Adequately Review the Solicitations for Each Contract Audited to Ensure That the Advertised Cost Estimate Matched the Project’s Objectives and Scope
The Commission did not adequately review the solicitations, and as a result, it did not advertise the correct project cost estimate for either contract audited. For the Admiral Nimitz Museum contract, the Commission advertised a cost estimate of $4.0 million, instead of the $2.4 million that was supported by the project objectives and scope included in the solicitation. For the San Felipe Museum contract, the Commission advertised a cost estimate of $4.0 million, instead of the $5.4 million that was supported by the project objectives and scope included in the solicitation.
The Commission Complied with Some Procurement Requirements for Both Contracts; However, It Should Strengthen Its Process to Ensure It Complies with All Applicable Requirements
The Commission complied with some contract procurement requirements for both audited contracts, such as posting both solicitations to the Electronic State Business Daily and using the evaluation criteria that was included in the solicitations. For both contracts audited, the Commission had weaknesses in its procurement processes related to opening solicitation bids, providing guidance to evaluation team members, and ensure that its board members obtain required contract training.
While the Commission Planned and Formed the Selected Contracts in Accordance With Most Applicable Requirements, It Should Strengthen Its Processes
For both contracts audited, the Commission complied with most contract planning and formation requirements. However, the Commission should (1) strengthen the development of its contracts to ensure that it includes all significant specifications in the executed contract and (2) require contractors to submit a Certificate of Interested Parties to the Texas Ethics Commission prior to signing a contract
The Commission Adequately Monitored the Construction of the San Felipe Museum; However, It Did Not Perform Certain Required Monitoring Activities
The Commission adequately performed oversight activities related to the construction progress of the San Felipe Museum contract. However, the Commission did not (1) monitor the contractor for compliance with certain contract requirements, (2) ensure that contractor payments were sufficiently supported and accurate, or (3) ensure that the contract manager received the appropriate training and certification.
Graphics, Media, Supporting documents