COM 1282.000 2006-2008 - Laserfiche WebLink

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specifically October 24, 2007, December 3, 2007, December 28, 2007, January 8, 2008, and March 24, 2008. DPW was prompt in providing files that contained executed contracts, awarded proposals, executed contract supplements and change orders, progress payment requests, and departmental contract accounting spreadsheets. However, after receiving five written requests and being granted two time extensions, DPW did not consistently provide auditors with files that fully documented the professional services candidate selection or ranking process; the construction bid proposal correction and revision process; the contract management process (including project engineer design and construction estimations, time-cost estimations and negotiations of contract supplements and change orders, and decisions not to pursue separate competitive procurements for additional work); and the project management process (including project inspector log books or notes documenting site, weather and contractor issues and providing support documentation for time extensions or force account work). Contract Supplements and Change Orders Contract modifications need to be prepared in accordance with underlying contract terms, Hawaii Revised Statutes, Hawaii Administrative Rules and the County Department of Public Works General Requirements and Covenants. The necessity and reasons for contract modifications and any negotiations preceding them also need to be properly documented to support compliance with procurement and contract laws and procedures. Support documentation should include a description of each specific change in contracted work and materials; its impact on time for contract performance, if any; where and why the departure from original scope of work is occurring; the method of verification of work performed, time billed and materials used; and the amount and method of compensation. However, the auditors found that the Department of Public Works does not adequately document its contract modifications. For the contract modifications reviewed, DPW did not consistently provide justification for either the contract change or the specific fee adjustment for each change. Most contract modifications were not supported by documentation specifying who initiated the change, why the change was necessary, DPW's internal estimate of reasonable time and costs associated with the change, or negotiations of the change with the service provider or contractor. DPW personnel interviewed indicated that requests for changes are usually verbal. 15