Audit finds NCTD contracting flaws: Consultant identifies missed opportunities to save taxpayer funds
The North County Transit District improperly handled millions of dollars in federally-funded contracts in recent years, a consultant’s report has found, highlighting missed opportunities to save taxpayer money.
A seven-month review of 270 contracts by Boston-area based Calyptus Consulting Group Inc. discovered the repeated lapses in the agency’s procurement process, running afoul of Federal Transit Administration rules.
North County Transit anticipates more than $13 million in revenue from the FTA this year, according to budget documents. Those dollars — about 14 percent of the agency’s total revenue — are governed by federal rules for third-party contracting.
Mandates for full and open competition proved especially troublesome for the agency, which runs the Coaster commuter rail service, Sprinter light rail, Breeze bus system and other offerings serving 12 million passengers a year.
Officials on multiple occasions made changes to the scope of existing contracts and increased the amount by thousands of dollars — sometimes failing to put the work out to bid when federal thresholds were reached. At other times, documentation of a cost analysis or prior board approval could not be found.
Matthew Tucker, executive director of the North County Transit District since December 2008, said he ordered the review as part of his ongoing effort to make NCTD a “best practice agency.” He said he “wanted to put the district on firm footing…. You have to be ready to be audited, no notice.”
Tucker said the agency has previously focused on launching its Sprinter light rail service and privatizing bus operations.
“Nothing that they found surprised me at all,” Tucker said of the federal contracting review. “You sort of know logically that without policies and procedures, to have everything done perfectly is not likely. Companies that don’t have process and procedures are not well-performing businesses.”
In a 12-page slideshow presentation to the board, Calyptus recommended the agency increase the use of sealed bid procurements and train its staff on price analysis, cost analysis and best value analysis.
In addition to its compliance review, Calyptus provided multiple staff trainings and created a 400-page contract procurement manual now used by employees, Tucker said.
Transit officials said they could not provide a comprehensive summary of all the issues found in the audit — which cost more than $190,000 — because the findings only exist in hard copy files for each individual contract.
U-T Watchdog gained access to the contract files under the California Public Records Act, spot checking them to learn the agency was cited for multiple deficiencies spanning millions of dollars of work, including work given to the agency’s largest contractors.
For instance, the pass-fail criteria and evaluation used when awarding a $177 million contract to First Transit in 2010 to operate and maintain the agency’s buses “doesn’t mention how interview will be scored,” and changes to the contract’s scope were improperly made, documents say.
Documentation of an independent cost estimate could not be found before the agency gave an initial $45 million contract to TransitAmerica for the operation and maintenance of the Coaster.
The evaluation factors used did not comply with best value procurement methods, and the contract lacked a required Americans with Disabilities Act clause, among other issues, reviewers found.
Another flagged agreement was a six-year, $4.7 million contract in 2010 with TransitAmerica to add facility and equipment maintenance work at both the Coaster and Sprinter rail operations facilities. The scope was expanded enough to qualify for competitive bids, but the work wasn’t advertised.
Agency officials wrote in the contract file that they chose TransitAmerica without bids “to provide work efficiencies” and because the selection “avoided conflicts associated with our unions and collective bargaining agreements.”
A 2013 payment to TransitAmerica for $74,063 for “operation maintenance of equipment and maintenance of way” was faulted in multiple areas, including a failure to obtain prior approval from the board and program manager.
Consultants noted the contract had “nothing documented other than PO (purchase order).”
Calyptus checked for FTA compliance in 56 areas for 16 base contracts, 140 task orders and 60 supplemental agreements executed from 2010 through 2014. They flagged more than 40 deficiencies, according to the board presentation by firm representative George Harris.
Harris focused his discussion on the improvements the district has made in its procurement practices in recent months and said most of the issues found centered on a lack of documentation of the agency’s actions.
“There is a better process that has been started,” Harris said. “Prior to that time, the process wasn’t as disciplined, if you will, and maybe the focus on FTA requirements was not there.”
Harris said he told employees at a recent training to increase negotiation efforts.
“Even if you don’t have the facts to support you, ask for something,” he said. “Take 10,000 bucks off.”
Harris said his team found no instances in which federal money was used for a purpose not allowed, or problems that would result in the FTA taking money back.
The Calyptus review preceded the agency’s triennial review by the Federal Transit Administration, scheduled for March.
“I feel really good about where the agency is at. Do I think the agency is perfect? No,” Tucker said. The goal now: “Let’s do things right the first time.”
Were N.C.T.D doing things "right" as Matthew Tucker wishes, they wouldn't be in this mess with the results of the auditor.
N.C.T.D was simply caught with their pants down trying to get away with another attempt at tom foolery. N.C.T.D should actually wake up and smell the roses, dismiss Tucker from his post, along with First Transit, send them both on their merry ways.
N.C.T.D, once upon a time, was a great company to work for, however, today with First Transit running the show, it's like working in a mortuary. Morale at the bus company is so down it makes a flat tire look inflated.
Were N.C.T.D doing things "right" as Matthew Tucker wishes, they wouldn't be in this mess with the results of the auditor.
N.C.T.D was simply caught with their pants down trying to get away with another attempt at tom foolery. N.C.T.D should actually wake up and smell the roses, dismiss Tucker from his post, along with First Transit, send them both on their merry ways.
N.C.T.D, once upon a time, was a great company to work for, however, today with First Transit running the show, it's like working in a mortuary. Morale at the bus company is so down it makes a flat tire look inflated.
No comments:
Post a Comment