Metro - File #: 2018-0403

• File #: 2018-0403
• Type: Informational Report
• Status: Agenda Ready
• File created: 6/18/2018
• In control: Construction Committee
• On agenda: 7/19/2018
• Title: RECEIVE AND FILE Office of the Inspector General change order/modification construction spot checks report.
• Sponsors: Construction Committee
• Indexes: Barriers (Roads), Beverly Hills, Budget, Budgeting, Carbon monoxide, Caverns, Construction, Contractors, Contracts, Crenshaw/LAX Transit Corridor Project, Design build, Division 16, Informational Report, Labor, Labor agreements, 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, Noise barriers, Procurement, Program management, Project, Project management, Project Status Report, Regional Connector Transit Corridor Project, Safety, Steel, Testing, Traffic control, 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

Meeting_Body
CONSTRUCTION COMMITTEE
JULY 19, 2018

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 checks report.

Issue
ISSUE
On January 25, 2018, the Metro Board directed Office of 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.
Discussion
BACKGROUND

I. SUMMARY

The OIG has developed a spot check program ("Spot Checks") primarily focuses on approved change orders and modifications that exceed $1 million. The Change Orders in this report were selected from the July Program Management Major Project Status Report (File # 2018-0393), covering March, April, and May 2018. The information for the Spot Checks were collected from the Program Management Department's data base PMIS system. Also, in-person and telephonic interviews were conducted with Program Management, Project Control, and Procurement staff for each individual project office.

The OIG has reported seven change orders for the period from March 1, 2018 to May 31, 2018, that are using Metro funds; four were processed from Crenshaw/LAX, one from Regional Connector, and two from Westside Purple Line Extension Section 2. This quarter the Westside Purple Line Extension 1 did not have any change orders above $500 thousand. Regional Connector and Westside Purple Line Extension 2 projects did not have any Change Orders above $1 million (except for those the OIG previously reported in May 2018) but the OIG selected change orders between $500 thousand to $1 million on which to report.


We found that four Change Orders were negotiated/approved/executed on average faster t...