| Organization: | Office of the State Auditor |
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| Date published: | September 28, 2018 |
Executive Summary
In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of the Massachusetts Bay Transportation Authority (MBTA) for the period July 1, 2014 through December 31, 2016.
The scope of our audit was to determine whether the MBTA had taken measures to adequately address the management action items that were identified by an external auditor. These action items were in the areas of the MBTA’s bid and award, change order, and cost estimation processes.
Below is a summary of our findings and recommendations, with links to each page listed.
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The MBTA did not ensure that its own staff, as well as its contracted design engineers and their estimators, properly conducted periodic cost estimates and risk analyses. |
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MBTA management should establish effective monitoring controls to ensure that periodic project estimates and risk analyses are properly conducted by MBTA personnel, its contracted design engineers, and their estimators. |
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The MBTA did not maintain an accurate Disinterested Bidders Database or investigate all prospective bidders. |
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The MBTA should develop written policies and procedures for updating information in the database and identifying and researching disinterested bidders, and it should establish monitoring controls to ensure that these policies and procedures are followed. |
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The MBTA processed change orders without adequate documentation. |
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The MBTA should codify its Contractor’s Change Order / Risk Reallocation Check-Off List as a required piece of supporting documentation for all change orders and should implement monitoring controls to ensure that its contractors complete this document. |
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The MBTA did not ensure that information in its Bid Comparison to Cost Estimate Database was accurate. |
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The MBTA did not ensure that contracted design engineers performed a root cause analysis on each bid that varied from the engineer’s estimate by more than 10%. |
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MBTA management should establish effective monitoring controls to ensure that information is accurately recorded in the Bid Comparison to Cost Estimate Database and that a root cause analysis is performed for each bid received that varies from the engineer’s estimate by more than 10%. |
List of Abbreviations
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AACE |
Association for the Advancement of Cost Engineering |
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CDD |
Capital Delivery Department |
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DBB |
design-bid-build |
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EON |
Explanation of Necessity |
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FMCB |
fiscal and management control board |
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GLX |
Green Line Extension |
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ICE |
Independent Cost Estimate |
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MassDOT |
Massachusetts Department of Transportation |
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MBTA |
Massachusetts Bay Transportation Authority |
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OSA |
Office of the State Auditor |
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PM |
project manager |
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RON |
Record of Negotiation |
Table of Contents
- Overview of the Massachusetts Bay Transportation Authority and Its Construction Contract Management
- Audit of the Massachusetts Bay Transportation Authority's Contract Management Process Scope, Objectives and Methodology
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- The Massachusetts Bay Transportation Authority Did Not Ensure That Its Own Staff, As Well As Its Contracted Design Engineers and Their Estimators, Properly Conducted Periodic Cost Estimates and Risk Analyses.
- The MBTA Did Not Maintain an Accurate Disinterested Bidders Database or Investigate All Prospective Bidders.
- The MBTA Processed Change Orders Without Adequate Documentation.
- The MBTA Did Not Effectively Administer Its Construction Contract Bid Analysis Process.
Contact
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Room 230
Boston, MA 02133