SAO AUDIT RECOMMENDATIONS AND ACTION PLAN
38 pages
English

SAO AUDIT RECOMMENDATIONS AND ACTION PLAN

-

Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres

Description

Port of Seattle State Auditor Report Responses And Action Plan July 21, 2008 The table below addresses 51 recommendations submitted to the Port of Seattle following the Washington State Auditor’s Office report focusing on Port construction practices. The first two recommendations, shown in blue (OA1, OA2), are overarching for the Port in general, and others, numbered 1 – 49, are specific to construction and contracting practices. The latest activities, listed under Action Steps, will be shaded orange, and then green as they are completed. Use the search feature to navigate through the document. Overarching Recommendations Latest Activity Action Completed RECOMMENDATION PORT RESPONSE ACTION PLANNED ESTIMATED CONTACT PERSON COMPLETION STATUS/ REMARKS OA1. The Port should The Port agrees this Port Chief Executive Officer (CEO) directed Linda Strout 6/1/08 OA1.a. In November 2007 the Port obtained the services of an outside establish a senior-level recommendation has merit. A Port staff to review options and best practices Deputy CEO facilitator with extensive procurement expertise who led a planning Chief Procurement team is in place, and work is for procurement systems, and recommend process that defined roles, responsibilities, and related position Officer (CPO) position. already underway to identify organizational and process change to CEO ...

Sujets

Informations

Publié par
Nombre de lectures 20
Langue English
 
             
                                      
   
Port of Seattle State Auditor Report Responses And Action Plan July 21, 2008    The table below addresses 51 recommendations submitted to the Port of Seattle following the Washington State Auditor s Office report focusing on Port construction practices. The first two recommendations, shown in blue (OA1, OA2), are overarching for the Port in general, and others, numbered 1 – 49, are specific to construction and contracting practices. The latest activities, listed under Action Steps, will be shaded orange, and then green as they are completed. Use the search feature to navigate through the document.   Overarching Recommendations Latest Activity Action Completed    
 
  RECOMMENDATION PORT RESPONSEACTION PLANNEDESTIMATED CONTACT PERSONCOMPLETIOSTATUS/ REMARKS OA1. The Port should Strout 6/1/08 PortThe Port agrees this Linda Chief Executive Officer (CEO) directedOA1.a. In November 2007 the Port obtained the services of an outside establish a senior-level Port staff to review options and best practices Deputy CEOrecommendation has merit. Aextensive procurement expertise who led a planningfacilitator with Chief Procurement and recommend lace, and work isteam is in s stems, for rocurement onsibilities,rocess that defined roles, res osition and related Officer (CPO) position. and process change to CEO organizationalalready underway to identifydescriptions for the new Central Procurement Office. In addition, CEO This official should reportand evaluate procurement by March 15, 2008.Tay Yoshitani began the process of establishing a Capital Development directl to the Port CEO anizationsmodels in other orDivision to oversee the Central Procurement Office – a ste ned desi to and be res onsible for a e in ma orthat en rocurement ractices in a more robust manner thanovern the Port’s managing and overseeing facilitator with extensive Outside OA1.a the Withconstruction projects.what is included in the recommendation. all rocurement-related ertise hired inhel of an outside facilitator rocurement ex activit . This official 2007. ro ital November ectex erienced in ca hOA1.b. December 20, 2007 throu March 8, 2008 the Internal should have authority todelivery, the team is reviewingProcurement Team was assembled by the Deputy CEO. hire trained and OA1.band analyzing several options Procurement Internal  inde endent rocurementfor mission, role, ersonnel, Recommendation Team assembledOA1.c. December 20, 2007 throu h March 8, 2008 the Internal officials who will be December 2007. Team includes in and location,re ortin .Procurement Team met weekl charged with reviewing from majorstructure of a Chief representatives and a rovin all centers within the Port. similar rocurementProcurement Office orOA1.d. On March 15, 2008 the Central Procurement Office functions, rocurement-relatedfunctional unit the next overres onsibilities, were and staffin sufficientl defined and a ob descri tion transactions. Currentseveral weeks. The Port’s OA1.c Recommendation Team Procurementfor a Chief Procurement Officer was prepared. delegations of authority meetsCEO has asked the team to weekly. related to rocurement –rovide him with an outline of Lee was a ointedOn March 19, 2008 Dwa ne interim Chief contract awards, a rovalo tions and a referred Im lement functional centralized rocurementProcurement Officer and the Central Procurement Office was made of contract changes and office.recommendation within 90functionally active on March 20, 2008. amendments, and relatedda s. A eriod necessar of activities involvin tion, advertise, are ob descri OA1.d Preim lementation lannin will and advertised for osted was tion descri ositionOn March 21, 2008 the expenditure of public select Chief Procurement Officer. andfollow, but the CEO anticipatesa permanent Chief Procurement Officer. funds related tothat the new unit or construction andde artment erational can be o Com OA1.e necessar lete anizational orOn Ma 2008 the 7, of interviewin rocess for a Chief Procurement construction management working logistics.by June 1, 2008. TheOfficer was completed. – should be rescindedteam includes representatives and re-assi ned to thefrom the Port’s executive,On June 12, 2008 the new Director of the Central Procurement Office, CPO and her or his staff.legal, project management, licensed attorney, Ms. Huey has ANora Huey, was announced. engineering, and purchasing Her firstsignificant experience in contracting and procurement practices. staffs. work will be June 30, 2008.da of  0A1.e. On February 28, 2008, CEO Yoshitani announced the creation of the Ca ital Develo ment Division to oversee the Central Procurement Office as well as existin en ineerin and construction functions with in the organization.  On March 20, 2008 the Port functionall established a Central Procurement Office and consolidated procurement functions and activities within this new organization.  A ril 7, 2008 throu h Ma 5, 2008 the or anizational lo istics, roles and responsibilities of the Central Procurement Office were announced Port wide via email.
2   
RECOMMENDATION PORT RESPONSEACTION PLANNED
3   
OA2. The [Port]Resolution 3181 is the On Commissioners January 8, 2008, the Port Commission Commission should re- establishedstructural framework Davis/Tarleton a subcommittee to review the evaluate the currentunderl in relationshi the dele ation of Commission authorit currentl Dele ation of Authorit to described in Resolution 3181.between the Port Commission the [Port] CEO Resolutionand the CEO. encom assed in OA2.a It in 1994. ted3181 was ado Commissioners Davis and Tarleton Resolution 3181 and serve on the subcommittee.has remained substantiall will develop and issue a newunchanged for the past 13 Delegation of Authorityyears. However, only one of may retain outside OA2.b Subcommittee resolution that more erts. exthe five Commissioners who clearly defines thevoted on and signed Commission’s intent with Subcommittee will report back to full OA2.cResolution 3181 remains in res ect to construction Commission with ro osedoffice. A chan e of CEO mana ement and ear.occurred earlier this b amendments 30, 2008. June reporting to theGiven these circumstances, it Commission and theis a that the CEO ro riate directed Port staff to review and rovide ublic concerninCommission and the CEO to the es recommendations for chan detailed construction activities. 3181 provisions related to Resolutionreview the provisions of this bedrock document. Ultimatel , construction mana ement and construction the Commission, in activit re ortin b March 15, 2008. conversation with the CEO, will strike the balance between OA2.d Internal team assembled and olic direction and meetin to review s ecific rovisions im lementation, as well as and rocesses. other matters concerning the sco e of the CEO’s authorit . To advance that effort, the CEO has asked members of his executive team, led by the General Counsel, to rovide him with recommendations for updating, clarifying and stren thenin a variet of rovisions in Resolution 3181 within 90 days. The CEO has directed the team to give s ecific attention to the results of this performance audit and the 49 resulting recommendations. In particular, the team is charged
7/22/08  
 ESTIMATED CONTACT PERSONCOMPLETIOSTATUS/ REMARKS  As of June 3rd Division was functionall mentthe Ca Develo ital established. The hiring process for the Manager, Capital Development is nearing completion.    OA2.a. On January 8, 2008, the Port Commission passed a motion establishing a subcommittee to review delegation of the Commission’s authorit throu hout the or anization. Commissioners Davis and Tarleton a reed to lead the subcommittee, and invited several members of the public with expertise in governance structures to serve as panelists assistin the subcommittee. Ph llis Cam bell, President, The Seattle Foundation, Thomas L. Purce, President, The Ever reen State Colle e, Jim Warjone, Chairman, Port Blakely Companies and current chair of the Seattle Chamber of Commerce, and Shan Mullin, Partner, Perkins Coie, acce ted the invitation and a reed to assist Commissioners Davis and Tarleton in revising Resolution 3181, the document governing delegation of Commission authority. .  On May 1, 2008 the Subcommittee held its first hearing to accept public comment on ro osed chan es to the Dele ation of Authorit .  On May 13, 2008 the Port opened a 30 day public comment period on the Dele ation of Authorit .  On June 10, 2008 the Port extended the public comment period to June 30, 2008. Also the Subcommittee held its second hearing to accept ublic comment on ro osed chan es to the Dele ation of Authorit . At the same time the Port invited em lo ees to comment on the sub ect.  On June 23, 2008 the Subcommittee held its third hearin to acce t ublic comment on the ro osed chan es to the Dele ation of Authorit .  OA2.b. On May 1, 2008 the Subcommittee held its first hearing to accept ublic comment on ro osed chan es to the Dele ation of Authorit .  On June 10, 2008 the Subcommittee held its second hearing to accept ublic comment on ro osed chan es to the Dele ation of Authorit .  On June 23, 2008 the Subcommittee held its third hearing to accept public comment on the proposed changes to the Delegation of Authority.  OA2.c. Commissioners Davis and Tarleton have spent multiple hours with Port staff discussing best practices for organizational governance.On July 1, 2008 the Subcommittee reported to the full Commission and presented a summary of recommend changes to the Delegation of
RECOMMENDATION PORT RESPONSEACTION PLANNED with rovidin s ecific recommendations for rocess improvements and enhanced checks and balances for ro ect-wide contractin authority, as well as increased public visibility and Commission artici ation for lar er construction ro ects. The CEO then will share these recommendations with the Commission.
 ESTIMATED CONTACT PERSONCOMPLETIOSTATUS/ REMARKS Authorit .  OA2.d. The Port Commission passed a motion on January 8, 2008 affirming its desires to review Commission Resolution 3181 to ensure that the dele ated authorit is structured in a manner that ensures maximum public trust in the Port and is in line with best practices in organizational governance. Per the motion the Commission established a subcommittee to review Resolution 3181 and to make recommendations on amendments to Resolution 3181 to the full Commission.  The Subcommittee drafted revisions to the construction mana ement sections of Resolution 3181. On Ma 1, 2008 the subcommittee hosted a public meeting to receive comment and testimony on the proposed changes. The Port is now seeking public comment during a 30 day comment eriod from Ma 13, 2008 to June 11, 2008. Note: comment eriod extended to June 30, 2008   Next ste s include:  Au draft resolution to full ust 5, 2008 Subcommittee resents Commission  of new resolution ust 12, 2008 first readin Au  new resolution of Au 26, 2008 second readin ust  1.a. On Januar 24, 2008 b direction of the Chief En ineer interim actions were im lemented re uirin all chan e orders to be reviewed b Construction Managers and Contract Administrators prior to execution and that evidence of that effort to be placed in the files.  On February 8, 2008 the item was discussed at the training sessions held for action item 1b.  On Februar 27, 2008 the item was discussed at the trainin sessions held for action item 1b.  1.b. On Februar 8, 2008 trainin was com leted on the review rocess for all change orders. This included roles and responsibilities within the new review process and change order estimating.  On February 27, 2008 training was completed on the review process for all change orders. This included roles and responsibilities within the new review rocess and chan e order estimatin .  1.c. On May 29, 2008 a standard procedure for preparing Engineer’s Estimates was established. For modifications reater than ten thousand dollars but less that fift thousand dollars a Rou h Order of Ma nitude (ROM) is required. For modifications exceeding fifty thousand dollars an Independent Estimate is required. A standard cover sheet will be used for
1. We recommend that The Port will review its chan e The Port has im lemented and stren thened Ra Rawe The Port immediatel order control rocedures and control rocedures for chan e orders as Chief Engineer implement and will implement changes where follows: strengthen control warranted to ensure alignment Immediate A tion: rocedures to assure that with industr best ractices. c Engineers’ change order The Port has u 1. a All change orders are double checked by estimates are (a) alre ady bege n, a Construction Manager (CM) and a reared without iamndr owville cmoennttisn uaes, toa rmt aofk the Contract Administrator CA before the knowled e of the 37- oint action lan from the are executed b the Port. contractors proposed TwiKll Win cpoerrfoorrmataen tchee  audit, and it  1.b  Provide trainin to ensure comlian f amounts, and b chan e ce or order estimates and cost Performance Auditor’s each Resident En ineer RE , CM and analyses are fully and additional recommendations CA on current requirements for change completely documented. into that action lan as order estimates and document training Where cost or rice aroriate.  T hpe Port arees secifics. analysis is used to e estimates, evaluate change order that indep ndent ondar Additional Action: roosals, the Port rceovsite awns aloyf sciso natnrad cstoerc chanye 1.c  Evaluate documentation of analses of should re uire full and order ro osals are vital to estimates and make recommendations complete documentation transparency and for standardization and consistency. of these reviews, accountabilit and will ensure includin full that these estimates and 1.d Establish a olic outlinin when a documented supervisory reviews are well-documented scehpaanrgaet eo redsetir mreatqeu iens lti reeu qoufi rae sd iar et reviews and approvals. in the files. c 4   
6/5/08  
RECOMMENDATION PORT RESPONSE
ACTION PLANNEDESTIMATED CONTACT PERSONCOMPLETIOSTATUS/ REMARKS evaluation of the existin contractor’sall cost estimates; this sheet will also summarize the information chan e order ro osal.contained in the estimate.   1.e Coordinate policy and procedures withfor change order estimating was provided toOn May 30, 2008 training the Chief Procurement Office. develoca ital new the b affected that are directl ersonnel ment  procedures. 1.f Update CM and CA manuals to reflect new rocesses and rocedures. was rovided to e order estimatin for chanOn June 2, 2008 trainin   develoca ital ersonnel ment new affected that are directl the b 1.g Provide training to CMs, CAs, Portprocedures. Construction Services PCS and Pro ect Mana ement Grou PMG on new cost rocedure 2008 a standard 29,1.d. On Ma En arin re for ineer’s estimate procedures.Estimates was established. For modifications greater than ten thousand  dollars but less that fifty thousand dollars a Rough Order of Magnitude ROM is re uired. For modifications exceedin fift thousand dollars an Inde endent Estimate is re uired alon with a standard cover sheet.  On Ma 30, 2008 trainin for chan e order estimatin was rovided to ca ital develo ment ersonnel that are directl affected b the new procedures.  On June 2, 2008 trainin for chan e order estimatin was rovided to ca ital develo ment ersonnel that are directl affected b the new procedures.  1.e. As of June 2, 2008 the En ineerin De artment had coordinated with the Chief Procurement Office to implement revisions to the Construction Manual Standard O eratin Procedures and the Contract Manual. Trainin for affected em lo ees was also com leted.  1.f. On May 29, 2008 online CA & CM Manuals were updated with the new forms.  1.g. On May 30, 2008 training was provided to capital development ersonnel that are directl affected b the new rocedures.  On June 2, 2008 training was provided to capital development personnel that are directl affected b the new rocedures.  2.a. On Februar 22, 2008 an anal sis of ro ect trend lo s detailin chan e order amounts which coincided with the contracts amount was completed. On March 3, 2008 this information was forwarded to the Internal Audit Manager.  2.b. On February 26, 2008 the Internal Audit Manager forwarded a copy of the proposed review methodology to SAO.  2.c. The report to Senior Management will happen at a later yet to be
2. We recommend that The Port has be un a review The Port will review current ro ect trend lo s, Jo ce Kiran i the Port undertake a of chan e orders and trend identif inconsistencies and note corrective Internal Audit review of all major recent logs to identify similarities actions or evaluate recommendations. Manager and ongoing projects to between Port estimated costs identif cases where and contractor ro osed Immediate Action: engineers’ estimates and amounts. The Port will take 2.a Identify all cases where engineers’ contractors proposed remedial action as appropriate easmtiomuanttes s aaren dc ocnosnitsrtaecnttolr st hper osposeda nd amounts are consistentl and also a l the rocess ame the same and, in such improvements described determine underlying causes. 5   
8/31/08  
7/31/08
3.a. On Februar 27, 2008 trainin was com leted on the review and documentation process for all Change Orders as well as roles and res onsibilities within this new review rocess.  3.b. On March 12, 2008 team members were established and the team was formed.  3.c. On February 7, 2008 minimum change order documentation requirements were included in the new change order review process and checklist. These re uirements are an u date to alread existin re uirements in the Construction Manual.  3.d. As of June 2, 2008 revisions incor oratin im roved chan e order ne otiation and documentation rocedures have been made to the Construction Manual Standard Operating Procedures.  3.e. On Ma 30, 2008 re uired trainin for affected ersonnel was completed.  On June 2, 2008 re uired trainin for affected ersonnel was com leted  3.f. As of June 2, 2008 the processes were coordinated and carried out by members of both the En ineerin De artment and the Central Procurement Office.    
RECOMMENDATION PORT RESPONSEACTION PLANNEDESTIMATED CONTACT PERSONCOMPLETIOSTATUS/ REMARKS cases, undertake a above in Recommendation 1. determined date. further evaluation of the Additional Action: underlying causes; 2.b Review matches identified and 2.d. Results from the internal auditor will be reviewed with Senior followed by remedial recommend remedial action. Management and remedial action will be taken by construction actions as appropriate. mana ement and contract administration ersonnel. 2.c Provide report to Senior Management.  2.d Take a ro riate remedial action as directed b Senior Mana ement.  Ra Rawe 3. We recommend that The Port has be un revisin The Port will revise its Standard O eratin [the Port] revise its SOP itOs ceorantsitnru cPtiroonc eSdtuarnedsa rMd anual Pruiodcelidnuerse sf omr arnouael rt oa inndc laucdceu rsaptee cicfihca ne Chief Engineer Manual to include s ecific e uidelines for ro er and as art of its TKW order documentation, and will take the accurate change order performance audit action plan. following steps: documentation. [The Specifically, this revision will  Immediate Action: Port should rovide include more uidelines for nin to its consultant 3.a Provide training on current requirements tsrtaaiff/cognstruction cdhoacnugmee onrtadteiro nn.e  gPootirta tsitoanffs  wainlld  for change order documentation for CMs, mana ers to im rove the receive necessar trainin to REs and CAs. manner in which the Porsupport these newguidelines. Additional Action: projte] icst  cdhoacnugmee onrtidnegr s. 3.b  Establish team to evaluate current ractices.  3.c Establish minimum chan e order documentation re uirements and rovide change order review checklist.  3.d Review current documentation of chan e order ne otiations and develo standard format.  3.e Provide trainin to ins ectors, REs, CMs, CAs, Program Leaders, Project Managers, PCS, Facilities & Infrastructure, internal desi ners and internal auditors on new rocedures.  3.f Coordinate rocess with new Central Procurement Office CPO , which will provide quality control, oversight and continuous improvement.  4. We recommend that As noted in the Port’s The Port will develo standard o eratin Ra Rawe the Port develo res onse to Recommendation rocedures that ali n with best industr Chief Engineer Standard Operating 3, the Port has begun practices and will take the following steps: Procedures (SOPs) that revisions to its procedures 6   
6/5/08
 4.a. As of March 25, 2008 the re uirement for a ne otiation summar was included in the change order review and checklist.  
RECOMMENDATION PORT RESPONSEACTION PLANNEDESTIMATED CONTACT PERSONCOMPLETIOSTATUS/ REMARKS ali n with industr manual to better conform to Immediate Action:4.b. On Februar 27, 2008 trainin was com leted on the review and ractices. Current Port industry ne A 4.a best practices. be reviewed will summar otiation e for all Chandocumentation rocess Orders as well as roles and SOPs do not provide by a CM and a CA before the Portresponsibilities within this new review process. adequate information executes any change order. re ardin chan e order4.c. On March 11, 2008 a team was established to review best industr negotiations. 4.b Provide training in conjunction withpractices for change order negotiations. change order training described in 3.a.   encies a ublic 3, 2008 team members interviewed various to rilOn A Additional Action:determine best industr ractices for chan e order ne otiations. 4.c Determine best industry practice for chan e order ne otiations. a s ed sheet to com read are4.d. On A 3, 2008 the team develo ril   e order ractices for chan encies best industrvarious local a 4.d Identify differences, if any, between bestnegotiations. industry practices and those applicable to Port o erations. b used 14, 2008 the team determined that the method currentl rilOn A   best ractices.the Port of Seattle is consistent with industr 4.e Develop and/or revise current Port standards. e Position form for chan orders valued 29,On Ma otiation 2008 Pre-Ne  two hundred thousand dollars was established.at or above 4.f Provide training to appropriate staff.  4.e. On April 14, 2008 it was determined by the team that the current “Summar of Ne otiations” form is consistent with best industr ractices. The form shall contain a chronolo ical summar of the ne otiations and all pertinent information shall be attached to the form.  On Ma 29, 2008 Pre-Ne otiation Position form for chan e orders valued at or above two hundred thousand dollars was established.  4.f. On Ma 30, 2008 trainin for Port of Seattle ersonnel directl affected by the new procedures for change order negotiations was conducted.  On June 2, 2008 training for Port of Seattle personnel directly affected by the new procedures for change order negotiations was conducted.  On June 19, 2008 trainin for Port of Seattle ersonnel directl affected by the new procedures for change order negotiations was conducted.   5.a. On Februar 27, 2008 trainin was com leted on the review rocess for all Chan e Orders as well as roles and res onsibilities within this new review process, including construction schedules.  5.b. As of Februar 26, 2008 All active ro ects were reviewed for contractual schedule compliance. Information gathered from the compliance review was utilized to develop the schedule training resentation.  
5. Port mana ement The Port will review its The Port’s res onse to chan e order Ra Rawe should take immediate ractices of contract schedule estimates is addressed under Chief Engineer Recommendation 1. steps to assure that [the enforcement and the Port] rigorously enforces evaluation of time extension all contractual schedule re uests to identif where Port mana ement will immediatel ensure  requirements. Then, further improvements can be that the Port enforces, consistent with best practices, all contractual requirements for when requests for time made. The Port will pay extensions are made, s ecific attention to the re aration and submission of schedules b they can and should be practices of other state and taking the following steps: 7   
8/1/08