TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Auditing Services Contract Award
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider approving the award of a three-year contract with Crowe LLP with options for two one-year renewals for auditing services.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Having an external independent audit services firm engaged to perform annual audits and complete required reporting is mandatory and also has the added benefits of validating the District's finances and providing transparency and reliability in reporting numbers to outside parties.
BUDGETARY/FISCAL IMPACT:
The total fixed cost of the audit services for the three-year period is $456,840. The option years are priced at $153,800 and $157,600, respectively, for a five-year total of $768,240. This compares to the previous five-year contract for auditing services of $685,000, representing an increase of $83,000 or 12%. The contract also has provisions for optional audit-related consulting services for the five-year period for a maximum amount of $575,000. This gives the total maximum contract spend amount over five years as $1,343,420.
The base auditing services are included in the operating budget every year. Any additional audit-related services would only be used if budget is available.
CONTRACT AWARD SUMMARY:
Vendor Outreach Summary:
No. DBE/SBEs:|10 10|No. Registered Vendors:
70
Contract Summary:
# Proposals/Bids Received:|1010|Award Type:
Best Value
Independent Cost Estimate Range:
$920,705 (audit services only)
Recommended for Award:
Crowe LLP
Small Business Type:
Not Applicable*
DBE/SBE Utilization %:**
N/A
* Neither SBE, nor DBE
** The District sets Small Business Enterprise (SBE) goals on contracting opportunities. ...
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