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WMATA Process for Developing the Estimated Cost of METRO Can Be Improved

B-141529 Published: Dec 08, 1978. Publicly Released: Dec 08, 1978.
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Highlights

The process used by the Washington Metropolitan Area Transit Authority (WMATA) to estimate the cost of the Washington Metropolitan Rapid Rail Transit System (METRO) at December 31, 1977, was reviewed. Although WMATA has improved its estimating capability, it misclassified and excluded costs from the estimate, inadequately recognized program changes, insufficiently used and analyzed available data, and lacked an independent review. Most of the problems stem from the absence of written direction and guidance. Consistent and effective cost estimating procedures and guidelines should be developed and implemented with provision for: (1) defining contingencies and analyzing uncertainties in the METRO system; (2) including all costs associated with the design, construction, and acquisition of equipment regardless of the funding source; (3) estimating the total impact of program changes through program completion; and (4) providing an effective independent review of the estimate.

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Topics

Cost analysisFuture budget projectionsMass transit fundingMass transitSubway constructionTransportation costsCost estimatesSystems acquisitionGovernment procurementMetropolitan areas