We're pleased our Job Order Contract (JOC) Audit was used as a model by Los Angeles County which conducted and recently released an audit of their JOC program. The County's JOC program is similarly intended to efficiently move along infrastructure improvement projects, such as renovations of parks, libraries, and hospitals, by using a pre-established catalog of products and services to maintain competitive pricing.
Each audit found systemic lack of controls over key areas of the JOC process. This led to a pattern of unrealistically low bids that were inflated to make a profit after contract award, ultimately resulting in infrastructure improvement projects costing more than what they should have.
Because of audit recommendations, proper procedures are now being implemented to enhance project oversight. Since our audit was released, the City has undertaken our recommendations by enacting legislation providing key controls around program processes and requirements, including:
- independent review of project proposals;
- prequalification of JOC contractors; and
- setting a cap of 10% on the amount of non-catalog items that can be used on a project.
The County audit recommended the formation of a work group, comprised of management from the Chief Executive Officer and each department that utilizes JOC, to address their report's findings and implement audit recommendations that standardize program processes and policies thus strengthening the JOC program.
I am pleased there is better oversight of a critical construction program. The public can now have greater assurance that both our City and County assets and tax dollars for infrastructure improvement projects are protected. Our City and County are implementing important changes which advance an effective government for the public. This is a good example of how our City and the County can learn from one another as we work together on common problems. As many municipalities and agencies use JOC Programs, these two audits can serve as templates.
Our complete Job Order Contract Audit can be viewed
here
and the complete County of Los Angeles Department of Auditor-Controller Audit can viewed
here
.
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