Metro - File #: 2021-0780

• File #: 2021-0780
• Type: Informational Report
• Status: Filed
• File created: 12/1/2021
• In control: Construction Committee
• On agenda: 1/20/2022
• Final action: 1/20/2022
• Title: RECEIVE AND FILE Office of the Inspector General Change Order Construction Spot Check Report for the period September 1, 2021 to November 30, 2021.
• Sponsors: Construction Committee
• Indexes: Americans With Disabilities Act, Budget, Budgeting, Carbon monoxide, Century City, City of Los Angeles, Construction, Contractors, Contracts, Disadvantaged business enterprises, Division 20, Equity Focus Communities, Informational Report, Labor, Metro Equity Platform, Metro Rail A Line, Metro Rail B Line, Metro Rail D Line, Metro Rail E Line, Metro Rail L Line, Metro Vision 2028 Plan, Persons with disabilities, Procurement, Program, Program Management, Project, Project management, Regional Connector Transit Corridor Project, Research management, Safety, Statistics, Storm sewers, Strategic planning, Twenty-eight by '28 Initiative, Westside Cities subregion, 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
1/20/2022	Construction Committee

CONSTRUCTION COMMITTEE
JANUARY 20, 2022


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, 2021 to November 30, 2021.

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 $1,000,000. The four change orders in this report were selected from the Program Management Major Project Status Report (Legistar file # 2021-0788) covering September 1, 2021, to November 30, 2021. 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 involved project office.
We found that two of the four change orders in this report were:
* Negotiated and executed more expeditiously than would have occurred according to the former Board approval process,
* Approved faster with the new delegation of authority, and
* Negotiated at a lower cost than the contractors' proposed price.

Each Spot Check summarizes the following areas:
* Description of the change order,
* Change order detail,
* Scope of Work,
* Budget,
* Schedule: Time to execute the change order,
* Safety, and
* Recommendations, if any.

Metro's Program Control department has provided informal responses ...