File #: 2021-0405   
Type: Informational Report Status: Filed
File created: 6/2/2021 In control: Construction Committee
On agenda: 7/15/2021 Final action: 7/15/2021
Title: RECEIVE AND FILE Office of the Inspector General Change Order Construction Spot Check Report for the period March 1, 2021 to May 31, 2021.
Sponsors: Finance, Budget and Audit Committee
Indexes: Budget, Budgeting, Construction, Contractors, Contracts, Informational Report, Metro Rail A Line, Metro Rail D Line, Metro Rail E Line, Metro Rail L Line, Program Management, Project, Project management, Radio, Regional Connector Transit Corridor Project, Subgrade (Pavements), Testing, Transfers, Westside Subway Extension/Purple Line Extension Phase 1
Attachments: 1. Attachment A - July 2021 Spot Check 06.18.21 submit, 2. Attachment B - 2021-2020 July Recommendation Response submit, 3. Presentation
Meeting_Body
CONSTRUCTION COMMITTEE
JULY 15, 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 March 1, 2021 to May 31, 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 $500,000. The four change orders in this report were selected from the Program Management Major Project Status Report (Legistar file # 2021- 0423) covering March 1, 2021 to May 31, 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 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,
* Approved faster with the new delegation of authority, and
* Negotiated at 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, and
* Recommendations, if any.

Metro's Program Control department will provide responses to the recommendations in thi...

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