Metro - File #: 2019-0007

• File #: 2019-0007
• Type: Informational Report
• Status: Agenda Ready
• File created: 1/9/2019
• In control: Construction Committee
• On agenda: 4/18/2019
• Title: RECEIVE AND FILE Office of the Inspector General Change Order/Modification Construction Spot Check Report.
• Sponsors: Construction Committee
• Indexes: Bids, Budget, Budgeting, Construction, Construction management, Construction Support, Contractors, Contracts, Crenshaw/LAX Transit Corridor Project, Informational Report, Los Angeles International Airport, Metro Crenshaw Line, Metro Exposition Line, Metro Green Line, Metro Purple Line, Metro Rail C Line, Metro Rail D Line, Metro Rail E Line, Metro Rail K Line, Metro Vision 2028 Plan, Mitigation, Payment, Procurement, Professional Services, Program, Program management, Project, Project management, Project Status Report, Purchasing, Research, Research management, Strategic planning, Subcontractors, Testing, Twenty-eight by '28 Initiative, Westside Subway Extension/Purple Line Extension Phase 1, Westside Subway Extension/Purple Line Extension Phase 2, Westside Subway Extension/Purple Line Extension Phase 3

Meeting Body
CONSTRUCTION COMMITTEE
APRIL 18, 2019

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

I. SUMMARY

The OIG has developed a spot check program ("Spot Checks") that primarily focuses on approved Change Orders and Modifications that exceed $1 million. The Change Orders in this report were selected from the April 2019 Program Management Major Project Status Report (File # 2019-0168), covering December 2018, January and February 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.

The OIG has reviewed six Change Orders for the period of December 1, 2018, to February 28, 2019; two processed from Crenshaw/LAX, three from Purple Line Extension Section 1, and one from Westside Purple Line Extension Section 2. For this quarter, Regional Connector did not report any Change Orders above $500,000.

We found that four of the Change Orders in this report were negotiated and executed faster than the former Board approval process would have taken, and all six were executed faster with the new delegation of authority. In addition, the negotiated cost for two Change Orders were equal to or lower than Metr...