Plane Train - August 2023
Released: August 2023
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The Department of Aviation requested the audit of the Plane Train due to the inherent risks associated with a third-party contractor managing the project, the importance f the service to the airport operations, and the sizable dollar amount of contractual agreement (over $22 million per year). This audit assesses whether controls were in place to ensure that the third-party contractor complied with contract requirements related to performance incentives, maintenance requirements, wages, overtime pay, and allowable expenses.
Our recommendations to the Department of Aviation Commissioner are: To better manage the contract, the airport general manager should create internal standard operating procedures for how Aviation monitors Alstorm. If a competitive procurement is not possible the chief procurement officer should document thorough justification for a sole source procurement as required by city code and ensure that the term of the sole source agreement is reasonable.
- The city should establish stronger controls for contract administration.
- The city did not comply with overtime requirements of the contract
- Alstom follows most procurement best practices for contract management, but system controls could improve.
- The contractor met its preventive maintenance requirements, completing 95% of the scheduled work orders within 90 days, consistent with contract requirements.
- The city has used a sole source contract with the same vendor since 2005 to operate and maintain the Plane Train.