Joseph Comé
Assistant Inspector General for Highway and Transit Audits

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
Bus Regulator Must Do More to Stop Rogues, Watchdog Says
FAA Fails to Properly Monitor Contracting, U.S. Auditor Says
Former Owner Convicted in Largest Disadvantaged Business
Enterprise Fraud in Nation's History

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

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.

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.

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 Federalaid 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.

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%
63%
67%
73%
79%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Percent of Projects Reviewed with Errors
Source: OIG Report MH-2011-146

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
Counter Measures
Total
False Statements, Claims,
Certifications
Disadvantage Business
Enterprise Fraud
24
26
 Criminal checks and
Suspension and Debarment checks on prime contractors, subcontractors, and DBEs.
Prevailing Wage Violations 6
 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.

 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’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.

 Accountability Improper payments; management of change orders; robust fraud reporting.
 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.

 National OIG Hotline: (800) 424 - 9071 or
(202) 366 -1461
 OIG Hotline E-mail: hotline@oig.dot.gov
 OIG Web Page: www.oig.dot.gov