A new Amtrak OIG report shows Amtrak did not complete all necessary planning for the Frederick Douglass Tunnel program

Despite major construction ahead, Amtrak has not yet completed all necessary planning for the Frederick Douglass Tunnel (FDT) program, increasing the risk of cost overruns and schedule delays, according to a new report from the Amtrak Office of Inspector General (OIG).

The report notes that the estimated $6 billion FDT program is the largest infrastructure effort Amtrak is leading, with construction scheduled to begin this year. According to the report, Amtrak is continuing to develop its management structure for the FDT program, but initially did not have an effective structure or sufficient staffing in place. In December 2022, Amtrak hired a contractor – a delivery partner – to manage and oversee it, but until the contractor was brought on board more than a year later, the company relied on an overwhelmed internal team to manage multiple, complex and concurrent commitments.

According to the report, the Federal Railroad Administration (FRA) approved the program in 2017, but the availability of funds to begin construction remained limited for several years. Amtrak's Strategy and Planning Department resumed planning in 2021 in anticipation of receiving funding with the passage of the Infrastructure Investment and Jobs Act (IIJA), and transferred responsibility for the program to the emerging Capital Delivery Department in 2022 . In 2023, FRA awarded $4.7 billion for the FDT program through an IIJA-funded grant program.

The report indicates that at the time the Capital Delivery Division assumed responsibility for the FDT program, it developed its own processes and hired project and program experts to improve Amtrak's oversight of its key capital programs. Because no process had been established at the start of a program to ensure adequate staffing, the Capital Delivery Department initially assigned responsibility for the $6 billion FDT program to a single individual with limited management and support to oversee a program of this size and complexity.

The report notes that as of October 2023, Amtrak's program team has grown from one to seven members, including an assistant vice president. Despite the additional staff, five of six employees told Amtrak OIG auditors they were overwhelmed by the workload. Senior Amtrak officials acknowledged the inadequate staffing, due in part to funding constraints, and noted that Amtrak should have staffed the Capital Delivery team before assuming responsibility for the FDT program.

The OIG also found that Amtrak did not establish a program management structure early enough. According to the report, industry standards suggest that organizations establish a program management structure in the early stages of a program. Without an effective management and oversight structure or adequate staffing from the start, Amtrak struggled to create the necessary planning in four key areas:

1. Scheduling
2. communication
3. Document management
4. Risk management

As a result, according to Amtrak OIG, the program has experienced delays and there is a significantly increased risk of cost overruns and additional delays as major construction progresses. Additionally, the delivery partner must now complete program management planning simultaneously as it and Amtrak prepare and begin construction.

To reduce the risk of delays and cost overruns, the OIG recommended that Amtrak advance required program management planning and improve program planning processes to ensure that a management structure is implemented and sufficient staffing is deployed early enough to avoid similar challenges in future programs. Given the scope of Amtrak's historic capital plans, the report says avoiding similar challenges with other programs will be key to protecting and maximizing taxpayer investments.

For more information, see the full report, which can be downloaded from Amtrak's OIG website.