OIG No. 24-02: Summary of Risk Assessment Activities and High Risk ContractsJoseph M. Centorino, Inspector General
TO:
FROM:
DATE:
PROJECT:
Honorable Mayor and Members of the City Commission
Joseph Centorino, Inspector General
February 26, 2024
Summary of Risk Assessment Activity and High-Risk Contracts
Summary Period: January 1, 2023 through December 31, 2023
OIG No.: 24-02
The Office of the Inspector General has a Contract Oversight function that may result in an
audit, investigation or review of any procurement or resulting City contract. In connection with
this oversight the OIG engages a part-time Contract Oversight Specialist, Jill Klaskin Press.
Ms. Press previously served as Assistant Director of the Miami-Dade County Department of
Procurement Management for most of her 28-year career overseeing annual expenditures up
to a billion dollars on goods and services for the County. She holds a certification as a Certified
Public Purchasing Officer (CPPO) from the Universal Public Purchasing Council (UPPCC)
where she has served on both its Board of Examiners and Board of Directors. She has been
an active participant in the National Institute of Governmental Purchasing (NIGP) at both the
Chapter and National levels since 1985, and currently works as a private consultant to State
and local governments on procurement matters.
The Contract Oversight Specialist monitors the City's procurement process with the
cooperation of the Procurement Department. The position provides general observation,
oversight, and analysis of various aspects of the governmental contracting process, including
bid process, evaluation, negotiations, and contract implementation. The primary objectives are
to promote transparency and efficiency in City expenditures and to ensure that decisions are
fair, objective, and without bias or prejudice toward any participant.
The OIG has developed a Risk Assessment Worksheet (RAW) tool to be initiated by a using
department, whenever a solicitation is requested. This tool, which is attached to this memo, has
been incorporated into the Request for Issuance Approval Form, which is sent to the City's
Procurement Department. The form provides pertinent information related to the nine risk factors
about the nature and conditions of the project or program in question and the projected cost of
the goods or services to be procured. Procurement staff members forward the forms on contracts
having large dollar amounts, in excess of $1,000,000, to the OIG to calculate and apply
assessment scores and to rate the contract as having a high, medium or low risk level. This Risk
Assessment tool has assisted the OIG in determining where to focus its procurement and
contract oversight.
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When it is determined by the RAW that the solicitation indicates a "High Risk" score of 23 points
or higher, the Contract Oversight Specialist notifies the Inspector General, the Procurement
Director, Contracting Officer, and Supervisor of the findings. A high-risk score does not
necessarily indicate that a solicitation will raise any issues. It does serve to indicate a solicitation
that the OIG intends to follow. It also alerts the City Administration to high-risk contracts that may
merit special managerial oversight.
After a contract has been identified as high risk, the City's Procurement Specialist retains the
score sheet in the solicitation folder and notifies the OIG Contract Oversight Specialist of any
addenda, meetings, protests, award, etc., regarding the solicitation. The OIG Contract Specialist
may then follow the item through the procurement process by attending evaluation meetings and
reviewing procurement documents. In the event of a bid protest or other complaint received by
the OIG, the same scrutiny may be applied to medium or low risk procurements.
During the period of January 1, 2023, through December 31, 2023, the Procurement Department
issued approximately 300 solicitations of which 41 were determined to have a value in excess
of $1,000,000. Of the 41 solicitations, 11 indicated a low risk score, 20 indicated a medium risk
score, and 10 indicated a high risk score.
The solicitations identified as high risk during the 2023 calendar year and their current status
include the following:
1) (CIP) 2023-120-ND-72° St. Development
Status: Awarded Kaufman Lynn Construction
2) (PW) 2023-350-LB - 30" Main Canal Crossing Replacement
Status: All bids rejected - Rebid as 2024-16-LB and awarded to Ric-man International
3) (FM) 2023-349-KB - Redevelopment of City Owned Property
Status: Bid opened 8/4/2023 No action yet.
4) (CIP) 2023-121-ND - A&E Services
Status: Awarded to Wannemacher Jensen Architects
5) (PW) 2023-421-DF - Stormwater System and Stormwater Cleaning
Status: Awarded to Express Drain & Sewer Cleaning, LLC
6) (ED) 2023-338-ND -MB Convention Center Mgmt.
Status: Awarded to Global Spectrum, L.P. dba OVG360
7) (PW) 2024-048-JP -Water Main Aerial Crossing Replacement along the West 41 st Street
bridge between Pine Tree Drive and Indian Creek Drive
Status: Awarded to Quality Enterprises USA
8) (PW) 2023-527-JP- Construction of Seawall
Status: Awarded to Ebsary Foundation Co. for Trouville Esplanade, Bonita Drive, and Rue
Notre Dame seawalls, and Kearns Construction Co. for 7150 Indian Creek seawall
9) (WS) 2024-018-DF - Water Main Replacement Venetian Causeway.
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Status: Awarded to Quality Enterprises USA, Inc.
10) (CIP) 2024-022-ND - Lincoln Rd. Improvements
Status: Bid issued on Jan 30, 2024. Current bid opening date March 12, 2024.
The worksheets for all risk assessments are public record and are available to anyone upon
request.
os ' Centorino
Inspector General
Jill Klaskin Press, CPPO
Contract Oversight Specialist
cc: Alina T. Hudak, City Manager
Eric Carpenter, Deputy City Manager
Alex Denis, Chief Procurement Officer
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6 Foor, Miami Beach, FL 33139
Tel: 305.673.7020 • Hotline: 786.897.1111
Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
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2/26/2024 | 9:51 AM EST
IG CONTRACT RISK ASSESSMENT
Using Department. B id #/ Project/Service(s):
Key Contact: Phone/Email:
This is a new program or service, or
has revised changes to a previous (3)
contract/solicitation
2 Statement of Work is complex there
are multiple components to the service (3)
to be rovided.
3 Payment method to be used:
• Performance Based (1)
• Fee for Service (2)
• Cost Reimbursement (3)
• Revenue Generating (4)
ew programs or services may require early
monitoring to ensure any issues are addressed in a
time! manor
Complex programs or services may require early
monitoring to ensure any issues are addressed in a
time! manor
Performance Based Contract must includeperiodic
reporting to ensure required performance is achieved.
Fee for Services Reporting must include periodic
tracking of services performed.
Cost Reimbursement Contract must include
language to track progress toward achievementof
contract to ensure budget is not overspent
Revenue Generating - Contract must include
language to track progress toward achievementof
contract to ensure revenue is being generated and
roperly recorded
4 Contract will be awarded for this
project utilizing:
• Competitive Procurement
• Non-competitive or Sole Source
(2)
(3)
5 Vendors for this/these services must
maintain accreditation or licensure
re uirements.
(2)
Contract must address the requirement and
consequences if the accreditation or licensure is not
aintained for the life of the contract.
6 Project has been or will be publicly
debated and may generated negative
opinions in the community and poses
ossible ne ative ublicit
(6) his includes projects that are contingent upon voter
referendum approval under the City Charter
7 This project represents a significant
portion of the City's comprehensive plan
and poses a financial or environmental
risk
(5)
Determine the potential impact on the City if avendo
does not meet their obligation.and there is no
secondary vendor to complete the project.
8 Project Maximum Amount:
• $1,000,000 and above
• $500,000 to $999,999
• $250,000 to $499,999
• $50,000 to $249,999
• Below $50,000
(5)
(4)
(3)
(2)
(1)
9 Vendor will be allowed to subcontract
key activities of this project. (2)
If subcontractors are allowed, identify in the contract
the monitoring that the vendor must complete to
ensure subcontractors are compliant
TOT AL PROJECT RISK
SCORE
RISK LEVEL: HIGH (23 OR >)
MEDIUM (13-22)
LOW (0-12)
Worksheet completed by: _ [ate.
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IG CONTRACT RISK ASSESSMENT
Instructions
1. To be completed by IG Contract Oversight Unit for competitive solicitations.
2. Identify risk factors that you know pertain to the project and enter corresponding number
(in parenthesis) in the RISK VALUE column.
3. If no factors apply, leave the box empty; if you believe the risk value should be adjusted
higher/lower enter that number and explain circumstances in comment section.
4. Add the risk value numbers and enter the total score in the red box Enter a total score
of0" if no factors applied. Using the scoring system, place the appropriate number in
the box to indicate the level or risk.
General Guidelines
1. A risk assessment worksheet is required for all projects. The worksheet is conducted as
early in the process of development as possible, preferably prior to competitive
solicitation.
2. Using the risk assessment worksheet prior to contract development is an effective
screening/selection strategy identify unique risks that may be mitigated by the
addition of Special Terms and Conditions.
3. If new factors are identified that do not appear on the list,use the "Other Risk Factor"
space to explain.
4. While the risk level largely determines the type and frequency of monitoring, the contract
type may also influence the monitoring method used.
5. Risk level ratings may be adjusted either up or down during the life of a contract.
6. Once the risk level is assigned, an appropriate monitoring schedule should be
developed and implemented. Goals for frequency of review will be based on Risk
Level as follows:
• High risk contracts - semi-annually
• Medium risk contracts - annually
• Low risk contracts as needed
7. Regardless of a project risk level, staff is encouraged to provide assistance
throughout the contracting process as an effective risk management strategy.
NOTE: Each risk factor can be mitigated by some action or response, either before or
after the contract is executed. This action or response can take the form of training,
technical assistance, special contract requirements/conditions/limitations.
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