Metro - File #: 2021-0591

• File #: 2021-0591
• Type: Informational Report
• Status: Filed
• File created: 9/2/2021
• In control: Construction Committee
• On agenda: 10/21/2021
• Final action: 10/21/2021
• Title: RECEIVE AND FILE Office of the Inspector General Change Order Construction Spot Check Report for the period June 1, 2021 to August 31, 2021.
• Sponsors: Construction Committee
• Indexes: Budget, Budgeting, Cleaning, Construction, Contractors, Contracts, Disadvantaged business enterprises, Division 20, Equity Focus Communities, Geotechnical Baseline Report, Groundwater, Informational Report, Maintenance, 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, Program, Program Management, Project, Project management, Project Status Report, Pumps, Railroad commuter service, Regional Connector Transit Corridor Project, Research management, Safety, Strategic planning, Tanks (Containers), 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
10/21/2021	Construction Committee

CONSTRUCTION COMMITTEE
OCTOBER 21, 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 June 1, 2021 to August 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 $1,000,000. The four change orders in this report were selected from the Program Management Major Project Status Report (Legistar file # 2021-0580) covering June 1, 2021 to August 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 this OIG Sp...