Metro - File #: 2020-0825

• File #: 2020-0825
• Type: Informational Report
• Status: Filed
• File created: 12/4/2020
• In control: Construction Committee
• On agenda: 1/21/2021
• Final action: 1/21/2021
• Title: RECEIVE AND FILE Office of the Inspector General Change Order Construction Spot Check Report for the period September 1 to November 30, 2020.
• Sponsors: Construction Committee
• Indexes: Americans With Disabilities Act, Budget, Budgeting, Century City, Cleaning, Construction, Contractors, Contracts, Grant Aid, Informational Report, Landfills, Metro Rail A Line, Metro Rail D Line, Metro Rail E Line, Metro Rail L Line, Metro Vision 2028 Plan, Procurement, Program, Program management, Project, Project management, Project Status Report, Regional Connector Transit Corridor Project, Request For Proposal, Strategic planning, Twenty-eight by '28 Initiative, Westside Cities subregion, Westside Subway Extension/Purple Line Extension Phase 1, Westside Subway Extension/Purple Line Extension Phase 2, Westside Subway Extension/Purple Line Extension Phase 3, Westside/Central Service Sector

Date	Action By	Action	Result
1/21/2021	Construction Committee

CONSTRUCTION COMMITTEE
JANUARY 21, 2021


Subject
SUBJECT: OFFICE OF THE INSPECTOR GENERAL CHANGE ORDER CONSTRUCTION SPOT CHECKS

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE Office of the Inspector General Change Order Construction Spot Check Report for the period September 1 to November 30, 2020.

Issue
ISSUE

On January 25, 2018, the Metro Board directed the Office of the Inspector General ("OIG") to conduct random spot checks on change orders for the projects listed in the quarterly program management report to ensure that the CEO Delegation of Authority to approve Construction Change Orders Policy is performing in the manner desired by the Board of Directors.

Background
BACKGROUND

The OIG's Construction Change Order Spot Check Program ("Spot Checks") focuses on approved change orders and modifications that exceed $500,000. The four change orders in this report were selected from the January 2021 Program Management Major Project Status Report (Legistar file # 2020-0836) covering September 1 to November 30, 2020. The information for the Spot Checks was collected from the Program Management Information System (PMIS) which is the department's database system. Also, TEAM meetings and telephonic interviews were conducted with Metro Program Management, Project Control, and Procurement staff from each project office.

We found that all four of the change orders in this report were negotiated and executed more expeditiously than would have occurred pursuant to the former Board approval process, and all four were approved faster with the new delegation of authority. In addition, all four change orders were negotiated at lower cost than the contractors' proposed price. This quarter's Spot Checks of change orders found the delegation of authority has resulted in:

* A negotiated amount that was less than the contractors' proposed price for the work to be done,
* Enabled the contractor to immediately order parts and mat...