An Audit Report on Selected Contracts at the Department of Transportation
Report Number 13-044
The Department of Transportation (Department) generally planned, procured, formed, and monitored the two contracts and authorizations related to the design and reconstruction of an interchange on State Highway 352 in the Department's Dallas District according to applicable statutes and rules and its policies and procedures. Specifically:
- The Department procured a $4.00 million engineering design contract and a $25.56 million construction contract in the Dallas District according to applicable statutes and rules and its policies and procedures.
- The Department planned and formed the construction contract and the $1.17 million in design services authorized for the interchange reconstruction project under the general $4.00 million engineering design contract according to applicable statutes and rules and its policies and procedures.
- The Department generally monitored progress and payments related to the design and reconstruction of the interchange project in accordance with applicable statutes and rules and its policies and procedures to ensure that the State’s interests were protected.
For the Dallas District construction contract audited, the Department should improve its oversight of contractor compliance. Additionally, the Department should follow its internal directives regarding (1) segregation of duties and identification of the quality assurance materials tester and (2) segregation of duties in the preparation of daily work reports, which contain the supporting documentation for payments to the contractor.
Auditors communicated other, less significant issues to the Department separately in writing.
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