State Auditor Blasts DHHS No Bid Contracts Print
State Government
By Administrator   
Wednesday, 10 August 2016 13:01
Raleigh - The State Auditor’s office found multiple instances of the Department of Health and Human Services handing out no-bid contracts in apparent violation of purchasing rules. 
 
The audit found no evidence that a $6.8 million no-bid contract with the Alvarez & Marsal consulting firm to help fix the operational dysfunction of Medicaid, was properly negotiated. DHHS hired the consulting firm to perform a number of functions for the Medicaid office. In the DHHS response, Secretary Rick Brajer said the contract was negotiated, but documentation of DHHS counter-offers was missing from the file.
 
The Raleigh News and Observer reports no evidence of negotiation was found for a $6.9 million contract with Quadel Consulting Corp. That company is working with DHHS on the Transitions to Community Living program, moving people with mental illnesses from institutions to community settings. About 30 smaller contracts, most for temporary medical staff, had no documentation indicating they were negotiated. 
 
Many of the no-bid contracts that required reviews by the Attorney General’s office, the Division of Purchase & Contract, or another office didn’t get them, the audit said.
 
Brajer said in his response that DHHS started reassessing its contracting and procurement practices in November 2015. “The initiative will strengthen policies and procedures to ensure required approvals are obtained,” he wrote.