An Amtrak Office of Inspector General (OIG) report determined Amtrak is working to improve tracking and management of capital project costs, but faces challenges with the systems and processes it uses.
For nearly a decade, Amtrak OIG has reported on challenges the company faces managing infrastructure projects that have led to cost overruns. The OIG’s report states that the current systems and processes hinder executives and project teams from obtaining consistent, detailed cost data. With funding from the Infrastructure Investment and Jobs Act potentially tripling Amtrak’s annual infrastructure spending over the coming years, the OIG’s report notes having such data is a foundational capability for effectively managing costs on billions of dollars in taxpayer-funded projects.
In 2022, Amtrak established the Capital Delivery department to improve its project management capabilities and to implement the majority of the company’s current portfolio of infrastructure, facility and fleet investments under development. The department currently has efforts underway to strengthen its ability to track and manage project costs, but it has additional opportunities to improve, according to the OIG.
In its most recent report, the OIG found Amtrak’s project costs are tracked in multiple systems, detailed and standardized cost data are not readily available to project teams and project cost management guidance is outdated. The OIG found project cost data was inconsistent across multiple systems, and company systems limit Amtrak’s ability to easily tie costs to specific work activities. As a result, project teams can miss emerging problems that might lead to cost overruns. In addition, having visibility of costs at a lower, more detailed level could help project teams identify specific cost issues in a timely manner, the report said.
Amtrak is developing a single project management system that will replace or integrate at least 12 separate systems.
