INDOT accused of unnecessarily spending $68M

A report from the state inspector general found that the Indiana Department of Transportation spent $68 million on "change orders," unexpected events that lead INDOT to spend more money than it had planned on projects, in 2004. \nIt has been recommended that INDOT's change order process be revamped, partially because of excessive spending on a road construction project in Ellettsville last year.\nA house purchased in Ellettsville for use during a project to expand State Road 46 was one of the 1,750 change orders filed last year for 499 projects where contracts were awarded. The report submitted by David Thomas, Indiana's inspector general, found that the more than 1,700 change orders -- approximately 3.5 change orders per project -- cost taxpayers $68 million in 2004. INDOT fired two project managers who supervised the State Road 46 project in Ellettsville for the unnecessary spending. \nAn investigation brought by Jerry Grant, an INDOT internal investigator, to the attention of the inspector general in January 2005, found that the Ellettsville project, which started in February 2004, submitted unnecessary change orders that resulted in total costs of more than $100,000. Those change orders included the purchase of a house for $83,000, significant renovations to the home which cost the state an additional $19,950, the purchase of a lawmmower and snowblade for more than $4,500 -- despite the fact that INDOT has internal equipment for these needs -- and a refrigerator, electric range and automatic garage door for nearly $3,000. The contractor also purchased 10 mobile radios for nearly $20,000.\nThomas said a field office is necessary for most construction projects so INDOT officials can secure their paperwork and equipment for the project, but he also said INDOT should include the cost of its field office in the original plan of a construction project. INDOT also considered donating the house to the town of Ellettsville after the project was completed\nThe report also said the change order process "gives contractors an incentive to artificially deflate project cost estimates in order to be awarded INDOT construction projects, only to reap inflated profits through the use of excessive change orders." \nEllettsville Clerk Treasurer Sandra Hash said no complaints about the funding for the widening of State Road 46 were heard at town council meetings, mostly because the Indiana Department of Transportation handled all of the funding for the project. The expansion now makes a drive to Bloomington from Ellettsville 10 minutes long instead of 25 minutes long, she said. The project was completed in November 2005. \n"We see the results of the road," Hash said. "It's a nice asset for the town of Ellettsville."\nThe inspector general recommended INDOT have better control regarding how the change order process is implemented and that INDOT document change orders be signed by the INDOT field engineer, the contractor and central INDOT authority. \nThomas also recommended INDOT return to the practice of renting mobile homes to serve as its field office instead of purchasing private property. The inspector general advised INDOT to reclaim any unnecessary houses or purchases to avoid wasting any funds of INDOT and the state of Indiana. \n"We made specific recommendations on how the Department of Transportation can control its spending, and INDOT has agreed to follow those recommendations," Thomas said.