ABC cited for deficiencies in audit

The N.C.  audit of the Alcoholic Beverage Control Commission (Commission) revealed that the ABC did not procure, administer, and monitor the LB&B Associates, Inc. (LB&B) contract for the warehousing and distribution of spirituous liquor in accordance with state policies and best practices.

Historically, the Commission has contracted with a vendor to warehouse and distribute spirituous liquor. LB&B Associates, Inc. (LB&B) has been contracted to provide these services since 2004.

LB&B is a facilities management, logistics, and training company headquartered in Columbia, Maryland. It employs nearly 1,000 employees across the United States and maintains more than 65 contracts at any one time performing services for the federal government, state government, and private clients.7 Approximately 70 employees are dedicated to the North
Carolina’s warehousing and distribution of spirituous liquor contract.

Since the assignment of the warehousing and distribution of spirituous liquor contract to LB&B in 2004, there have been 12 amendments to the contract that have retained LB&B as the State’s vendor and made changes to the price and/or contract terms. In state fiscal year 2017, the contract cost for warehousing and distributing spirituous liquor
was $8.3 million.

The total contract cost from July 2004 through June 2017 was $77.7 million.