Metro - File #: 2022-0450

• File #: 2022-0450
• Type: Informational Report
• Status: Filed
• File created: 6/30/2022
• In control: Construction Committee
• On agenda: 8/18/2022
• Final action: 8/18/2022
• Title: RECEIVE AND FILE Office of the Inspector General Change Order Construction Spot Check Report for the period March 1 to May 31, 2022.
• Sponsors: Construction Committee
• Indexes: Budget, Budgeting, Carbon monoxide, Construction, Contractors, Contracts, Disadvantaged business enterprises, Division 20, Equity Focus Communities, Informational Report, Labor, Memorandum Of Understanding, Metro Divisions, Metro Equity Platform, Metro Rail B Line, Metro Rail D Line, Metro Vision 2028 Plan, Program, Program Management, Project, Project management, Safety, Statistics, Strategic planning, Transfers, Tunnel lining, Westside Subway Extension/Purple Line Extension Phase 2, Westside Subway Extension/Purple Line Extension Phase 3

Date	Action By	Action	Result
8/18/2022	Construction Committee

CONSTRUCTION COMMITTEE
August 18, 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 March 1 to May 31, 2022.

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. The OIG gathers the data, reviews all the change orders over $500,000 and selects one change order from each of the major projects. Where a major project does not have a change order over $500,000, another project might have two change orders to report on. 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.
Change orders in this report originate from three different projects (Purple Line Extension Sections 2 and 3, and Division 20) but all concern the same contractor.
* Two change orders were issued as Not To Exceed (NTE) amounts because no Scope of Work agreement and Cost Schedule Proposal (CSP) were received, consequently no final modifications were entered into.
* One change order Scope of Work was agreed upon, but Metro could not reach an ...