Transcript U.S. Department of Transportation Office of Inspector General
U.S. Department of Transportation Office of Inspector General AASHTO Internal/External Audit Conference Phoenix, Arizona July 16, 2012 OIG Update and Audit Plan
Joseph Comé Assistant Inspector General
for Highway and Transit Audits
OIG Mission
The OIG supports DOT in meeting its goals of safety, reduced congestion, global connectivity, environmental stewardship, security, and organizational excellence.
Inquiry Finds No Evidence of Undue Influence on Safety Agency
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Former Owner Convicted in Largest Disadvantaged Business Enterprise Fraud in Nation's History
OIG Organization
Investigations
Principal Assistant IG for Investigations
Tim Barry Investigative Regional Offices
Inspector General
Calvin Scovel III
Deputy Inspector General
Ann Calvaresi Barr Aviation & Special Programs Highway & Transit Audits
Audit
Principal Assistant IG for Auditing & Evaluation
Lou Dixon Rail, Maritime, and Economic Analysis Acquisition & Procurement Financial and Information Technology
OIG Investigative Regional Offices
Region 1
Cambridge, MA (617) 494-2701
Connecticut; Maine; Massachusetts; New Hampshire; Rhode Island; Vermont; and the following New York counties:
Albany, Broome, Cayuga, Chenango, Clinton, Columbia, Cortland, Delaware, Essex, Franklin, Fulton, Greene, Hamilton, Herkimer, Jefferson, Lewis, Madison, Montgomery, Oneida, Onondaga, Oswego, Otsego, Rensselaer, Saratoga, Schenectady, Schoharie, St. Lawrence, Tioga, Tompkins, Ulster, Warren, and Washington.
New Jersey, Pennsylvania, Delaware, and New York counties not covered by Region 1.
Region 2
New York, NY (212) 337-1250
Region 3
Washington, DC (202) 260-8580
Region 4
Sunrise, FL (854) 382-6645
District of Columbia, Maryland, Virginia, West Virginia, and North Carolina.
Alabama, Florida, Georgia, Louisiana, Mississippi, Puerto Rico, South Carolina, Tennessee, and U.S. Virgin Islands.
Region 5
Chicago, IL (312) 353-0106
Region 6
Ft. Worth, TX (817) 978-3236
Region 9
San Francisco, CA (415) 744-3090
Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, North Dakota, Ohio, South Dakota, and Wisconsin.
Arkansas, Colorado, Kansas, Nebraska, New Mexico, Oklahoma, Texas, and Wyoming.
Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Pacific U.S. Territories.
OIG Recent Accomplishments
For the first half of fiscal year 2012: 83 audit reports with 234 recommendations; 3 Congressional testimonies; $1.4 billion in financial recommendations; 86 indictments and 33 convictions; and Just over $19 million in fines, restitutions, and recoveries.
Recent FHWA and FTA Audits
Refinements to DOT's Management of the Highway Trust Fund's Solvency Could Improve the Understanding and Accuracy of Shortfall.
FTA’s Charter Bus Service Regulation on Transit Services.
DOT Can Improve Oversight of Denali Commission's Use of Federal Transportation Funds.
New York City Fulton Street Transit Center: FTA’s Sustained Focus on Key Risk Areas Is Needed Until the Project Is Completed.
Oversight of Federal-Aid and Recovery Act Projects Administered by Local Public Agencies Needs Strengthening.
Opportunities to Foster Contract Competition and Maximize Use of Federal aid Funds.
Financial Analysis of Transportation-Related Public Private Partnerships.
DOT Needs to Improve Tracking and Monitoring of Single Audits Findings. Challenges to Improving Oversight of Rail Transit Safety and Implementing Enhanced Federal Role.
Local Public Agency Oversight
LPAs administer approximately $8 billion in Federal-aid highway program funds yearly; ARRA added an additional $8 billion.
Error rates found in LPA Administered projects reviewed: Right-of-Way Acquisitions Construction Close-Out Value Engineering Quality Assurance Procedures Project Reporting and Tracking Construction Pay Quantities and Progress Payments Consultant Selection and Billings Utility Agreements/Reimbursements Project Bidding—PSE/Contractor Selection/Unbalanced … Change Orders and Claims 7% 18% 23% 39% 44% 49% 0% 10% 20% 30% Percent of Projects Reviewed with Errors 40% 50% 60% 63% 67% 73% 79% 70% 80% 90% Source: OIG Report MH-2011-146
ARRA Contract Competition
Nearly one-fifth of ARRA contracts awarded by State DOTs received just 1 or 2 bids, which could have significant cost implications.
ARRA Contracts by Number of Bids
Number of Bids
1 bid
Number of Contracts
472
Percentage
6% 2 bids 3 or more bids 1,100 6,793 13% 81%
Total competed contracts 8,365 100%
Overall prices for contracts with 1 or 2 bids were, on average, 11 percent higher than prices for contracts that received 3 bids. Source: OIG Report ZA-2012-084
Allegation
OIG ARRA Investigations
Counter Measures Total
False Statements, Claims, Certifications Disadvantage Business Enterprise Fraud Prevailing Wage Violations 24 26 6 Criminal checks and Suspension and Debarment checks on prime contractors, subcontractors, and DBEs.
Reviewing Bidding Documents.
Anti-Trust Violations, Bid Rigging, Collusion 5 Reviewing Certified Payrolls.
Whistleblower 2 Checking Certification and Net Worth Status on DBEs.
Embezzlement 1 Corruption 5 Reviewing change orders, supplemental agreements, and claims.
FHWA-Related Audits Underway
Oversight of High Dollar ARRA Projects.
Stewardship and Oversight Agreements.
FHWA’s Full Oversight During ARRA Construction.
The Highway Safety Improvement Program.
TIGER Discretionary Grant Program Oversight.
DOT’s Information Security Program & Practices.
DOT’s Administration of Its Disadvantaged Business Enterprise (DBE) Program.
Quality Reviews of Single Audits.
FHWA’s Oversight of the Indian Reservation Roads Program.
FHWA’s Oversight of Unexpended ARRA Obligations.
FTA-Related Audits Underway
FTA’s Oversight of Major Projects in NYC: East Side Access.
FTA Oversight of the Dulles Corridor Metrorail Project.
Management of the Metropolitan Washington Airports Authority (MWAA).
FTA’s Regional Oversight of Transit Grants.
Future OIG Audit Work
Accountability
reporting.
Improper payments; management of change orders; robust fraud
Performance
– Stewardship and oversight of programs; sound performance indicators tied to a risk-based approach.
Operational Efficiency
– Consistency; identifying redundant and unnecessary processes; improving deliverables; meeting program goals.
www.oig.dot.gov
Contact Information
National OIG Hotline: (800) 424 - 9071 or
(202) 366 -1461
OIG Hotline E-mail:
OIG Web Page:
www.oig.dot.gov