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A Limited-Scope Review of State Purchasing Overseen by the Budget and Control Board
January 2005

FOLLOW-UP (PDF)     REPORT (PDF)     SUMMARY (PDF)

The General Assembly asked the Legislative Audit Council to conduct an audit of “competitive best value bidding” purchases. Under state law, government officials may use best value bidding, or a similar process called “competitive sealed proposal,” where factors other than price are considered in awarding state contracts. We reviewed best value bidding and competitive sealed proposal purchasing of goods and services and information technology by the Budget and Control Board. Our findings are summarized below.

  • The Budget and Control Board has instructed procurement evaluation panels (persons who score criteria used to award contracts) not to place documentation of their analysis in the procurement files, which are subject to public inspection. Evaluation score sheets that are in the procurement files contain only “number scores” with no information on what the scores are based.
  • The Budget and Control Board has not consistently provided its rationale for the use of procurement methods in which contracts may be awarded to vendors who do not have the lowest price. We did not locate written justification in 8 (27%) of the 30 cases that we reviewed.
  • Conflict of interest statements would help to ensure that panel members who score proposals are unbiased. Statements were not always required or obtained from procurement evaluation members.
  • The Budget and Control Board does not accurately or consistently record purchases in its database. Accurate and consistent information is needed to assist the legislature in oversight of state government operations.
  • State law requires that companies that sell goods and services to state government be given a pricing preference if they are South Carolina “residents” or if their products are made or grown in South Carolina. It is questionable whether in-state purchasing preferences result in net benefits to South Carolina’s economy or to its government. Although some companies benefit from these purchasing preferences, their effect includes higher prices paid by South Carolina taxpayers for the goods and services needed to operate state government. Also, South Carolina companies seeking to do business with other state governments are being penalized because of our preferences.