Metro - File #: 2020-0010

• File #: 2020-0010
• Type: Informational Report
• Status: Filed
• File created: 12/12/2019
• In control: Construction Committee
• On agenda: 1/16/2020
• Final action: 1/16/2020
• Title: RECEIVE AND FILE Office of the Inspector General Change Order/Modification Construction Spot Check Report.
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Alignment, Bids, Budget, Budgeting, Construction, Contractors, Contracts, Crenshaw/LAX Transit Corridor Project, Databases, Information management, Informational Report, Los Angeles International Airport, Metro Blue Line, Metro Crenshaw Line, Metro Exposition Line, Metro Gold Line, Metro Green Line, Metro Purple Line, Metro Rail A Line, Metro Rail C Line, Metro Rail D Line, Metro Rail E Line, Metro Rail K Line, Metro Rail L Line, Metro Vision 2028 Plan, Mitigation, Procurement, Program, Program management, Project, Project management, Project Status Report, Regional Connector Transit Corridor Project, Safety, Strategic planning, Surveys, Testing, Twenty-eight by '28 Initiative, Westside Subway Extension/Purple Line Extension Phase 1, Westside Subway Extension/Purple Line Extension Phase 3

Date	Action By	Action	Result
1/16/2020	Construction Committee

Meeting_Body
CONSTRUCTION COMMITTEE
JANUARY 16, 2020



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


Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE Office of the Inspector General Change Order/Modification Construction Spot Check Report.

Issue
ISSUE

On January 25, 2018, the Metro Board directed the Office of the Inspector General ("OIG") to conduct random spot checks on the projects listed in the quarterly program management report to ensure that the 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 Spot Check Program ("Spot Checks") focuses on approved Change Orders and Modifications that exceed $1,000,000. The four Change Orders in this report were selected from the January 2020 Program Management Major Project Status Report (File # 2020-0001), covering September 1 to November 30, 2019. The information for the Spot Checks was collected from the Program Management Information System (PMIS) which is the department's database system. Also, in-person and telephonic interviews were conducted with Metro Program Management, Project Control, and Procurement staff from each individual 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 two Change Orders were negotiated at lower cost and two were equal to the contractors' proposed price. This quarter's Spot Checks of Change Orders/Modifications found the delegation of authority has resulted in:

* A negotiated amount that was reasonable for the work to be done,
* Enabled the contractor to immediately order parts and materials, reducing delay.
* Contractor and was able to contin...