KING COUNTY AUDITOR'S OFFICE

Feb 9, 2018 - has also provided training on the policy and developed guidelines for .... project management manuals and training relevant employees on the ...
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KING COUNTY AUDITOR’S OFFICE February 9, 2018

Second Follow Up on Small Construction Contracts Performance Audit

TO:

The Finance and Business Operations Division (FBOD) has fully implemented all but one of the recommendations made in our July 2015 audit. This follow up addresses the eight recommendations that were either in progress or open as of the 2016 follow up. Of the eight recommendations, FBOD has implemented seven and has made progress on one.

Metropolitan King County Councilmembers

FROM: Kymber Waltmunson, County Auditor

Implementation of these seven recommendations has helped ensure agencies have the information they need to select the most appropriate contracting methods for their small construction projects, which helps ensure the county gets the best price for the work it bids out. It has also improved the rigor of analysis and documentation by agencies in their bid review work, which helps ensure a fair bidding process and helps mitigate the risk of the county unnecessarily paying more for construction. Finally, FBOD has increased awareness of the small works roster methods among local small contractors and suppliers and, in turn, helped provide opportunities to those businesses.

Of the eight audit recommendations:

7 DONE Fully implemented Auditor will no longer monitor.

1 PROGRESS

0 OPEN

Partially implemented Auditor will continue to monitor.

Remain unresolved Auditor will continue to monitor.

Please see below for details on the implementation status of these recommendations.

KING COUNTY AUDITOR’S OFFICE Recommendation 1

PROGRESS

The County Executive should develop and implement a plan to monitor the use of work order contracts by requiring agencies comply with construction work order contracts policy (CON 719) and align with state law.

STATUS UPDATE: In June 2017, the Executive published an update to the CON 7-19 policy and has taken numerous steps to educate agencies on the contents of the updated policy and to provide additional guidance on how to implement the policy (see recommendations two through three and six through nine). The County has also taken steps to develop proposed changes to state law. The Executive has drafted legislation that, if enacted, would explicitly allow the use of work order contracts. The proposed legislation will be considered by the Executive for inclusion in the 2019 legislative session. To complete implementation this recommendation, the Executive should put forward the proposed legislation for consideration by the state legislature.

Recommendation 2

DONE

Finance and Business Operations Division should develop, document, and disseminate decision-making guidance for divisions to use for selecting the optimal delivery method for small construction projects.

STATUS UPDATE: The Finance and Business Operations Division (FBOD) has completed the decision matrix that was in draft form at the time of our last follow up. FBOD has also worked with the Prosecuting Attorney’s Office to develop boilerplate language for limited public works projects that implementing agencies can use in contracts. The decision guidance and boilerplate language have both been provided to implementing agencies. By implementing this recommendation, FBOD has helped ensure that implementing agencies will have the information they need to select the most appropriate contracting methods for the delivery of small construction projects.

Recommendation 3

DONE

The County Executive should update the construction work order contracts policy (CON 7-19) to clarify intended use of work order contracting and require agencies to document justification for each individual work order based on eligibility criteria established in the policy.

STATUS UPDATE: In June 2017, the Executive published an update to