From Tech Transfer Newsletter, Summer 2005
This document is found at www.techtransfer.berkeley.edu/newsletter/05-3/12errors.php

The Dirty Dozen: Twelve Procedural Errors That Can Result In The Loss Of Federal Transportation Funds

Procedural errors by local agencies can result in project delays, and even loss of federal funds. Caltrans Division of Local Assistance has assembled this list of twelve areas with the most common problems they've encountered on federal-aid projects. The chapter numbers listed below refer to where you can find more information on the topic in the Local Assistance Procedures Manual, available at www.dot.ca.gov/ hq/LocalPrograms/ lam/lapm.htm.

1: Authorizations, Chapter 3

• Agency performs Preliminary Engineering, utility relocation, or right-of-way work prior to authorization
• Agency advertises project prior to construction authorization
• Agency certifies the project is in the Federal Statewide Transportation Improvement Program (FSTIP) at the time of authorization request but the project is not in the FSTIP, or the scope is different from that indicated in the FSTIP
• Agency does not have its annual Disadvantaged Business Enterprise (DBE) program approved prior to a request for authorization

2: Environmental, Chapter 6

• Agency proceeds with final design, utility relocation, or right-of-way acquisition prior to environmental clearance
• Agency changes the scope, funding or construction limits during the environmental process without noting the revisions or re-evaluating their effects in the project studies, or does not re-evaluate project with prior environmental clearance when changes occur
• Agency does not obtain required permits or does not adhere to permit requirements or conditions
• Agency does not ensure that environmental mitigations and restrictions are met
• Agency obtains California Environmental Quality Act (CEQA) approval, but not National Environmental Policy Act (NEPA) approval

3: Consultant Selection, Chapter 10

• Agency does not include applicable Federal contract provisions in consultant contracts
• Agency inappropriately awards consultant contract without open, competitive, qualification-based selections
• Agency does not get pre-award audit for consultant contract over $250,000 or executes the contract prior to pre-award audit

4: Right-Of-Way, Chapter 13

• Agency begins property acquisition discussions with owner before environmental approval and/or completion of appraisals.
• Agency performs right-of-way activities in violation of the Uniform Relocation Assistance and Real Properties Act, including failure to upgrade certification 3 to a certification 1 or 2 prior to opening bids
• Agency inappropriately issues a "No Right-of-Way Certification" for projects that involve utility relocations and/or construction easements
• Agency does not obtain specific authorization to relocate utilities or does not obtain approval of utility agreement
• Agency hires consultants that are not qualified to appraise and acquire property
• Review appraisers are not hired to review consultant's appraisals

5: Construction Award, Chapter 15

• Agency awards to other than the lowest responsive and responsible bidder; awards to suspended or debarred contractor; or negotiates work with low bid contractor prior to award
• Agency does not have an approved Quality Assurance Program prior to construction authorization
• Agency awards contract to lowest bidder who doesn't meet the Federal DBE requirements, without documenting a good faith effort.

6: Non-Competitive Bidding, Chapter 12

• Agency uses sole source, force account labor, or its own equipment or materials in construction without documenting and obtaining required approvals

7: Disadvantaged Business Enterprises (DBE), Chapter 9

• Agency does not enforce contract DBE provisions with regard to utilization, substitution or good faith determination and documentation

8: Americans With Disabilities Act (ADA) & Design Standards, Chapter 11

• Agency does not conform to ADA design standards, such as installing curb ramps where needed, or does not correct substandard ramps within project improvement area
• Agency does not incorporate design standards into plans, or does not document approved exceptions to applicable standards

9: FHWA 1273, Chapter 12

• Agency does not incorporate FHWA 1273 into construction contract or does not enforce its provisions (i.e., EEO, civil rights, wages, materials, subletting, safety, clean air & water, lobbying, convict labor, hiring preferences, Buy America, use of trainees, etc.)
• Agency fails to perform check of federal wage rates within ten days prior to bid opening

10: Construction Oversight, Chapter 16

• Agency does not provide adequate oversight, enforcement of labor compliance requirements, or quality assurance of construction to ensure completion in accordance with plans, specifications, and contract provisions
• Agency does not maintain adequate construction records to document compliance with federal law
• Agency does not adequately document contract change orders

11: Materials

• Agency does not submit a materials certificate or does not implement an approved testing program, Chapter 17
• Agency does not meet the requirements as provided in the "Buy America" clause and allows the use of foreign-made steel or iron in permanent improvements, Chapter 12

12: Maintenance, Chapter 18

• Agency does not adequately maintain the completed project

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