Report PDF - US Environmental Protection Agency

stops in Tennessee. The work plan for this cooperative agreement established up front
that TDOT’s role was to develop and facilitate a grant competition and oversee the
selection of sub-grantees who would be selected to move forward with developing TSE
parking spaces that best suit their location and clientele.
OIG Response 1: The OIG agrees with the comments regarding the grant award and
the work plan. However, the OIG does not agree with Region 4’s conclusion that the
subgrantees would be conducting the project. The OIG maintains that TDOT
conducted the project by contracting for the purchase and installation of TSE
facilities.
3. As stated in the terms and conditions of this project grant, TDOT was required to
maintain primary responsibility for ensuring successful completion of the EPA-approved
project and to monitor the performance of the sub-recipient(s) and ensure that they
comply with all applicable regulations, statutes, and terms and conditions which flow
down in the sub-award. TDOT was required to ensure that sub-recipients are aware of
requirements imposed upon them by Federal statutes and regulations. TDOT was also
required to ensure that any sub-award(s) comply with the standards in Section 210(a)-(d)
of OMB Circular A-133 and will not be used to acquire commercial goods or services for
the recipient (TDOT). Therefore, it is clear that TDOT was required to take an active role
in the performance of this project and were critical to the success of this project.
OIG Response 2: The OIG agrees with TDOT’s requirements under the cooperative
agreement. Hence, TDOT—which maintained primary responsibility for ensuring
successful completion of the project and for monitoring the subrecipients to ensure
full compliance with regulations, statutes, terms and conditions—did in fact “conduct”
the project or work at some level.
The OIG notes that Region 4 incorrectly cited OMB Circular A-187. OMB Circular
A-133 is the correct citation. As discussed in the draft report, the OIG used Section
210 (a)-(d) of OMB Circular A-133 to show that TDOT’s awards are indicative of a
vendor contractor and not a subgrantee.
4. Based on discussions with TDOT, each of the sub-recipients who were awarded funds
for “developing TSE parking spaces that best suit their location and clientele” meet the
criteria noted in Section 210(b) of Circular A-133 regarding sub-recipients. In our
discussions with TDOT they stated that the grantees: conducted all procurement actions
for services (e.g., electrical, concrete work, etc.); supervised all construction on the sites;
the grantees were responsible for taking pictures of the work being done and providing
site pictures to TDOT; were responsible for submittal of all invoices for equipment
purchased, for site preparation work completed, etc.; and were responsible for providing
periodic reports regarding the project to TDOT.
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