Project Name: OCTA – SR-22 Design Build Project – Contract Compliance & Fiscal Audits
Project Background: The Orange County Transportation Authority (OCTA) entered into a design-build contract with Granite-Myers-Rados (GMR) and a program management services contract with Parsons Transportation Group (PTG) for the SR-22 Design-Build Project.
GCAP’s Role: The GCAP Team was selected to conduct compliance and fiscal audits of both GMR and PTG as well as a review of OCTA’s management of the two contracts. Our role included:
- Performing on-site contract compliance and fiscal reviews.
- Reviewing and verifying direct labor rates and reviewing indirect costs (fringe benefits, overhead, and G&A pools).
- Determining proper allocations, indirect cost bases, and methodologies, and reviewing direct costs.
- Reviewing OCTA management of both PTG and GMR contracts.
- Analyzing internal controls utilized on both contracts including controls used for issuing amendments, OCTA’s process for approving invoices, and procedures used to ensure compliance with contract terms.
- Developing two separate findings reports, one for PTG and one for GMR which addressed compliance with the terms and conditions of the contract, OCTA’s project management and oversight of the contract, and provided recommendations for improvements.