Risk Matrix
Sole Source Purchases

"A" = Actual Control "P" = Proposed Control

              CONTROLS                                              
    C-1 C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9 C-10 C-11 C-12 C-13 C-14 C-15 C-16 C-17 C-18 C-19 C-20 C-21 C-22 C-23 C-24 C-25 C-26 C-27 C-28 C-29
  THREATS Individual departmental procedures requiring review and use, as needed, of product warranties. Review process to analyze and weigh contract costs. Multi-tiered review process to evaluate and justify need for item. Centralized procurement system to purchase in bulk quantity whenever practicable. Acquisition of items through another public agency which observes bidding requirements. Use of experienced and knowledgeable staff and/or purchasing staff advice and resources. Legal provisions prescribing specific individuals/offices who are authorized to sign contracts. The requirement to file and review of annual disclosure statement of economic interest. Training program and distribution of informational documents to familiarize employees about purchasing division requirements. Review process required to ensure inclusion of appropriate legal provisions in the solicitation, bidding and contracting. Legal provisions in the SJMC and contract laws providing various remedies to ensure satisfactory performance by vendors. Various provisions and requirements in the contract document discouraging contractor's delay or failure to perform. Policy in AM and legal provisions in contract laws and those contained in the solicitation and bidding documents. Requirements contained in SJMC, CC and AM prescribing need to go to bid where required and practicable. SJMC provisions and AM policy requiring solicitation of bids and awarding of contract to lowest responsible bidder. Bidding procedures based on legal provisions requiring award of contract to lowest responsible bidder. Provisions in SJMC and contract documents prohibiting illegal practices and investigation of any suspicious activity. Requirement to investigate bid protest alleging a bidding irregularity and authority to reject bids containing irregularities. Negotiation limits on purchases under $1,000; requirement for council to approve negotiation on purchases of high dollar amounts. Criteria established to justify extensions or renewals; requirement for council to approve any options over $20,000 AM policy as basis to justify use of rental, lease/purchase contracts. Procedure to ensure accuracy of items bid; legal remedy to forfeit security deposit if bid is withdrawn after bidding. Review of the successful bid documents by various appropriate departments for mistakes and irregularities. Utilization of various methods to ensure that contractors are qualified and responsible. Monitoring of compliance with insurance requirements and ensuring that indemnity provisions are contained in the contract. Contract limit specified and payments to contractor reviewed for accuracy and compliance with contract terms. Contract $ limit specified and monitored. Implementation being weighed against various factors. Inspection required to check accuracy and quality of items; legal provisions in SJMC providing right to reject delivery.
T-1 Solicitation, bidding, and contract documents do not include all provisions required by the federal and state code.                   A                                      
T-2 Solicitation, bidding and contract documents do not give the City sufficient rights and remedies to ensure satisfactory bidder or contract performance.                     A                                    
T-3 Solicitation, bidding and contract documents do not give the City sufficient rights and remedies to modify the document provisions to reflect changes in circumstances which develop after the award.                         A                                
T-4 City does not award contract on competitive basis.                           A                              
T-5 City is perceived by vendors to be unfair in awarding contracts.                             A                            
T-6 City does not uncover kickbacks, bribes, collusion and other illegal practices of bidders.                                 A                        
T-7 City does not investigate complaints or reports regarding bidding irregularities.                                   A                      
T-8 The competitive process is circumvented through the use of noncompetitive negotiation and limited-competition purchases.                                     A                    
T-9 The competitive process is circumvented through the use of contract extensions or renewals.                                       A                  
T-10 The competitive process is circumvented through the use of rental, lease/purchase contracts.                                         A                
T-11 City does not consider less costly alternative to contract.   A                                                      
T-12 The competitive process may jeopardize valid interest of bidders and expose the City to liability.                               A                          
T-13 Selected bidder withdraws tender after bids are opened.                                           A              
T-14 The City does not catch and correct mistakes and irregularities in bids.                                             A            
T-15 City selects unqualified or irresponsible contractor.                                               A          
T-16 City suffers uninsured losses from personal injury or property damage.                                                 A        
T-17 Contract does not perform or delays performance.                       A                                  
T-18 City overpays contractor.                                                   A      
T-19 Cost-reimbursement cost results in cost overruns.                                                     A    
T-20 City does not implement consultant recommendations.                                                       A  
T-21 City accepts wrong or defective product.                                                         A
T-22 City orders unneeded merchandise or equipment.     A                                                    
T-23 City does not use available product warranties. A                                                        
T-24 City orders uneconomical quantity of supplies or equipment.       A                                                  
T-25 City does not take advantage of intergovernment cooperative purchasing.         A                                                
T-26 Staff involved in purchasing or contracting decision do not have expertise in commodity or service covered by the contract.           A                                              
T-27 Unauthorized person approves contract.             A                                            
T-28 Person with a conflict of interest is involved in approval process of City contracts.               A                                          
T-29 City departments are not familiar with the functions and responsibilities of the Purchasing Division.                 A                                        

|CSJ Home Page| Auditor's Home Page| Risk Matrix Library|

If you have any questions or comments about this web page, please send comments to webmaster minh.nguyen@ci.sj.ca.us. Last revised July 25, 2002.