An Audit Report on Selected Contracting Functions at the Health and Human Services Commission
The Health and Human Services Commission (Commission) improved its administration of certain contracting functions since a series of prior audit reports.
However, it continued to have weaknesses in certain planning, procurement, and vendor selection functions. Specifically, for the contracts tested,
Did not accurately screen all vendor proposals for compliance with its solicitation requirements.
Did not perform required vendor compliance verifications adequately or within required time frames.
Did not perform proper planning to re-procure one of the contracts tested.
Did not obtain all required certifications and disclosures from employees involved in procuring and managing its contracts.
Evaluating Vendor Proposals.
To strengthen its procurement processes, the Commission implemented a quality control function for evaluating vendor proposals.
As a result, the Commission’s final scores and rankings supported its award decisions for the contracts tested.
Use of SCOR.
The Commission did not use its System of Contract Operation and Reporting (SCOR) as intended to manage the contracts tested.
Although the Commission did not use SCOR as required, it effectively managed its contract for the support and maintenance of the
State of Texas Automated Information Reporting System through other mechanisms.
Jump to Overall Conclusion
The Commission did not consistently follow its processes and guidance for certain planning, procurement, and vendor selection functions.
Specifically, the Commission did not screen all vendor proposals accurately or adequately perform required vendor compliance verifications.
The Commission also made an emergency procurement that it could have avoided if it had properly planned to re-procure one of its contracts.
Jump to Chapter 1-A
Similar to the findings in a November 2018 audit of selected Commission contracts, the Commission did not consistently obtain statutorily
required certifications and disclosures from its employees for the contracts audited. The Commission did, however, improve its
compliance with the requirement to obtain disclosures from vendors for applicable contracts tested.
Jump to Chapter 1-B
Since a July 2018 audit report on the Commission’s scoring and evaluation of selected procurements, the Commission made significant
improvements to its processes for evaluating vendor proposals and the Commission’s final scores and rankings supported its award decisions.
Jump to Chapter 2
The Commission implemented the System of Contract Operation and Reporting (SCOR) in September 2017 to provide one system of record for
the management and reporting of all health and human services contracts. The Commission ensured that payment amounts were accurately reflected
in SCOR. However, the Commission did not consistently use SCOR to manage its contracts as intended. Specifically, the Commission did not
consistently (1) comply with its requirements for uploading documentation into SCOR or (2) use the features of SCOR designed to help
it monitor its contracts.
Jump to Chapter 3-A
The Commission consistently reported its contracts and amendments to the Legislative Budget Board as required by the
Texas Government Code and the General Appropriations Act. However, it did not accurately report some contract
information and did not consistently complete the reporting within required time frames.
Jump to Chapter 3-B
The Commission contracted with Fairbanks, LLC to support and maintain the State of Texas Automated Information Reporting System (STAIRS),
the Commission’s web-based application for collecting and processing financial and statistical data. The Commission verified that the vendor
performed according to the terms of the contract and that it received the contracted services.
Jump to Chapter 4
Graphics, Media, Supporting documents