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MD: Problems persist with highway agency contract

By   /   November 28, 2012  /   No Comments

By Sam Smith | Maryland Reporter

PROBLEMS: Auditors continue to find problems with contracts at the state highway administration.

ANNAPOLIS – The Maryland State Highway Administration wrongfully authorized modifications and extensions to architectural and engineering contracts without the approval of the Board of Public Works, auditors have found.

They also found that the highway agency is not providing proper justification for the board to approve maximum contract awards.

These findings are similar to findings in a previous report on SHA contracts.

In addition, the Office of Legislative Audits report released Tuesday said that required contractor performance benchmarks were not established for the Maryland SafeZones pilot program for highway work zone speed enforcement. Auditors say that the contractors’ speed monitoring system is not adequately collecting readable photographs as actual citation revenue is $850,000 below the contractors’ original estimate.

The SHA used unexpended funds from numerous architectural and engineering  contracts to fund projects that were not within the capacities of the individual contracts. Using the contract funds for outside projects without approval from the Board of Public Works violates state regulations.

Due to a similar finding in a special review a year ago, the SHA conducted a survey and found that $21.7 million was charged to 105 contracts for projects that were beyond the scope of the individual agreements

Read more at Maryland Reporter.

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