Office of Inspector General Audit Report: FTA Did Not Adequately Verify Path's Compliance with Federal Procurement Requirements for the Salt Mitigation of Tunnels Project [open pdf - 580KB]
"In October 2012, Hurricane Sandy caused widespread damage to the transportation infrastructure in the mid-Atlantic and northeastern United States. In response, Congress enacted the Disaster Relief Appropriations Act of 2013 (DRAA) and appropriated over $10 billion to the Federal Transit Administration's (FTA) Public Transportation Emergency Relief Program (ERP), which is intended to help States and public transportation systems fund recovery, relief, and resiliency efforts in response to an emergency, such as a hurricane. In June 2014, FTA awarded a grant to the Port Authority Trans-Hudson Corporation (PATH) 1- a rapid transit railroad serving northern New Jersey and Manhattan, NY-for a variety of repair, recovery, and resiliency projects. To date, the total value of the grant, including amendments, is $678 million-including about $310 million for the Salt Mitigation of Tunnels Project, 2 which aims to repair salt water damage caused by Hurricane Sandy.3 PATH is a relatively new FTA grantee and has had limited experience administering FTA-funded projects prior to Hurricane Sandy. FTA Region 2's Hurricane Sandy Recovery Office is responsible for overseeing PATH and other grantees to verify that they comply with FTA and other Federal requirements, use sound procurement practices, and spend Federal grant funds appropriately. As part of our DRAA mandate to support oversight of FTA's Hurricane Sandy relief funds, we evaluated whether FTA's oversight was adequate to verify that PATH's procurement practices for the Salt Mitigation of Tunnels Project comply with Federal requirements."
Department of Transportation, Office of Inspector General Audit Report No. ZA-2016-057
Office of Inspector General: https://www.oig.dot.gov/