Summary of Report 19-029

A Performance Audit

An Audit Report on Selected Contracts at the Department of Motor Vehicles

February 2019

Summary Analysis

The Department of Motor Vehicles (Department) should strengthen its monitoring activities it performs for both its contract renewal with License Plates of Texas, LLC, doing business as My Plates (My Plates) and with Insight Public Sector (Insight) to ensure compliance with contract requirements. The Department performed the required contract planning, procurement, and formation for the contract with Insight. However, it should improve certain contract formation functions.

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MEDIUM The Department Monitored Some Areas of Its Specialty License Plate Contract, But It Should Identify and Monitor Other Key Areas

The Department performed monitoring activities of its contract with License Plates of Texas, LLC, doing business as My Plates (My Plates), which included (1) monitoring progress towards the guaranteed revenue to the State of $15 million, (2) reviewing the annual marketing plan, and (3) participating in monthly meetings with My Plates. However, the Department should perform a risk assessment and develop a monitoring plan to strengthen its monitoring of other key contract deliverables to help ensure that they were being met. For example, the Department should strengthen its monitoring to ensure that the State receives the correct license plate sales revenue amounts and that the third-party license agreements contain all of the required provisions.

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LOW The Department Adequately Performed Contract Planning, Procurement, Formation, and Oversight Activities for the Insight Public Sector Contract

The Department complied with most applicable requirements to plan, procure, form, and monitor the Insight Public Sector (Insight) contract. However, it should ensure that all provisions in the contract are consistent with the solicitation documents and the vendor submits all Historically Underutilized Business (HUB) subcontracting plans and reports as required.

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MEDIUM The Department Should Ensure that It Consistently Reports Contracts as Required

The Department did not consistently report contracts to the Legislative Budget Board (LBB) and on its Web site as required. The Department reported the Insight contract to the LBB and on its Web site; however, auditors identified other contracts that the Department did not report to the LBB and on its Web site.

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