Released on Dec. 20, the 200-plus-page audit found the port had wasted nearly $100 million in taxpayer funds on construction contracts between 2004 and 2007. Most of the 'unnecessary costs' detailed in the audit were connected to two contracts related to the construction of a third runway at Seattle-Tacoma International Airport, which is managed by the port authority.
One of the two contracts ' awarded to consultant Parsons Brinkerhoff ' ballooned from the original estimate of $10 million to $120 million without competitive bids. The audit found that port engineers could have done the job much cheaper and saved taxpayers $60.5 million. The second contract, awarded to construction firm TTI, came in $32.5 million higher than the port's original estimate. The audit found that the contract violated state law and details were kept from the port commission.
In addition to the violations of state law, Washington state auditor Brian Sonntag also found that port officials did not follow proper contract bidding procedures and in some cases allowed vendors to make decisions reserved for port officials. The audit also claimed that some port staff members impeded audit investigators and refused to certify the accuracy of the information that was provided. Sonntag also said that in some cases, records were altered before being turned over to his investigators.
Federal and local law enforcement officials have said they are considering launching their own investigations into the findings of the audit.
Port officials said that while they do not agree with all the findings of the audit, they take the audit seriously and plan to implement many of the 51 recommendations detailed within the report, including hiring a chief procurement officer for the port.
The public hearing on the audit will be held Jan. 8 at 1 p.m. in the port's Pier 69 headquarters.
The state legislature is also planning a 1 p.m. hearing on the auditor's report for Jan. 9. The hearing will be held in the Senate Hearing Room 4 of the John A. Cherberg Building in Olympia.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
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