OIG: Amtrak improved project cost management, but challenges remain

Amtrak is improving how it tracks and manages capital project costs, but still faces challenges with the systems and processes it uses, according to an Amtrak Office of Inspector General (OIG) report issued July 19.

Current systems and processes hinder executives and project teams from obtaining consistent, detailed cost data, the OIG concluded. Having that data is critical for effectively managing billions of dollars in funding from the Infrastructure Investment and Jobs Act, the report states.

Since Amtrak established its capital delivery department in 2022, the railroad has improved its project management capabilities. But there are other areas where it can improve, OIG officials wrote. While Amtrak 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detailed and standardized cost data are not readily available to project teams, and project cost management guidance is outdated, leading to an inconsistency in data across multiple systems.

Project teams can miss emerging problems that may lead to cost overruns, according to OIG. Having costs visible at a lower and more detailed level could help the teams identify cost issues more quickly.

Amtrak acknowledged the challenges identified in the report and is developing a single project management system that will replace or integrate at least 12 existing separate systems.

Additionally, OIG recommended that Amtrak study how it can develop and use more detailed and standardized costs for effective project cost management, and then create a plan specifying the people, processes and systems it will need to do so. That study is ongoing.