Section 427.5. Procurement

(a) Grantees receiving capital funding under this chapter shall follow the most stringent of any applicable Federal, State and local procurement procedures. Grantees shall have written procurement policies.

(b) Failure to comply with the procurement requirements applicable for the funding source for the procurement (Federal, State or local) may result in the ineligibility of the grantee to receive future State transit capital funds until the following conditions are met:

(1) The Department, or its representative, has conducted an audit of the grantee’s compliance with procurement requirements.

(2) The grantee has resolved any findings in the audit to the satisfaction of the Department or is working toward the resolution of findings based on a Department-approved action plan.

(c) The Department may require the grantee to pay for the audit cost directly, or may deduct the cost of the audit from any future State grant.

(d) Failure to comply with applicable procurement requirements may also result in a requirement that the grantee repay State grant funds used for the procurement.

(e) The Department may require a grantee to submit all procurement related documents to the Department for review and written concurrence prior to award to be eligible to receive State funds for that procurement.

(f) If a grantee is required to repay Federal funds due to noncompliance with procurement requirements, the grantee must also repay State matching funds related to that procurement.