FEMA Can Do More to Improve Public Assistance Grantees' and Subgrantees' Compliance with Federal Procurement Rules [open pdf - 5MB]
Taken from the Highlights page: "FEMA [Federal Emergency Management Agency] grants billions of dollars each year to recipients that contract for services to help communities respond to and recover from disasters. We performed this audit to assess the extent to which FEMA has allowed contract costs we questioned for noncompliance with Federal procurement requirements. We also assessed whether FEMA has granted an exception to procurement requirements for a class of grants, rather than on a case-by-case basis. The Federal Emergency Management Agency (FEMA) does not effectively enforce subgrantees' compliance with Federal procurement rules and has allowed the vast majority of procurement costs we questioned in our audits. Over a 6-year period ended September 30, 2014, our audits questioned $352.3 million in Public Assistance grant costs for noncompliance. FEMA officials subsequently ruled that $321.7 million, or 91.3 percent, of those costs were eligible. We questioned these costs because Public Assistance subgrantees (local governments and nonprofit organizations) did not follow Federal rules in awarding contracts. They often failed to conduct full and open competition with contractors to lessen the risks of fraud, waste, and abuse."
Department of Homeland Security, Office of Inspector General, Report No. OIG-16-126-D
U.S. Department of Homeland Security Office of Inspector General: https://www.oig.dhs.gov/