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Inspector general flags procurement gaps and a contract amendment; lawmakers press HSRA on $537 million settlement negotiation
Summary
The HSRA inspector general told the Assembly Transportation Committee that procurement timing, organizational conflict checks, and legal review of contract amendments need strengthening; members pressed HSRA over a proposed $537.3 million settlement/change order the board authorized to negotiate in closed session due to pending litigation.
The Assembly Transportation Committee’s oversight hearing on the High Speed Rail Authority included a detailed operational review from the HSRA inspector general that identified procurement weaknesses and raised questions about contract amendments and conflict screening.
Inspector General Ben Belknap told the committee that a procurement review found the authority generally complied with advertising and award rules for the five procurements examined, but frequently missed target completion dates, lacked a standardized procurement scheduling practice, and had insufficient procedures to detect organizational bidder conflicts. "We looked at 125…
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