Washington State Department of Transportation (WSDOT)
Capital Program 

Background:
The Washington State Auditor’s Office conducted extensive citizen outreach during 2006 and 2007, when concern was expressed toward administrative expenses across all areas of government. This research highlighted transportation as an area of concern, and the overall efficiency and effectiveness of the Department of Transportation.

Objective:
The Capital Program Audit was designed to accomplish various objectives. Among them was to determine whether the Washington State Department of Transportation (WSDOT) was:

• Effectively managing its highway projects in order to minimize engineering costs, environmental and permitting costs, other costs and unnecessary change orders that result in extra costs. If not, what is the magnitude of the opportunity lost in terms of cost, and what can be done to correct it?
• Effectively managing its highway projects in order to minimize unnecessary delays in project completion. If not, what is the magnitude of the opportunity lost including cost, and what can be done to correct it?

Conclusions:
Overall, the audit found that the Department is a leader among state transportation departments, and is already following several industry best practices. In addition, the audit identified further opportunities for improved efficiency.

The most significant recommendations included:

• Designating construction project cost engineers whose primary function is to oversee and scrutinize project costs, including change orders. The estimated cost savings for future planned construction projects is $36 million.
• Replacing the Department’s current consumable inventory management system would result in $5.6 million in improved efficiency, primarily through increased inventory turnover.
• Explore increasing allowable levels of recycled asphalt pavement.

Savings:
Once the audit was conducted, PlanB’s estimated cost savings for future planned construction projects to be $36 million. This was determined by designating construction project cost engineers whose primary function is to oversee and scrutinize project costs, including change orders.