The Office of the Controller, City Services Auditor contracted with Sjoberg Evashenk Consulting to conduct a performance audit to assess how well the San Francisco Public Utilities Commission (SFPUC) oversaw its Sewer System Improvement Program Management Services Contract (CS-165). The audit concluded that SFPUC saw that the $150 million, 15-year professional services Program Management Consultant contract was fulfilled, but it needs to improve its contract management practices over similar large-scale programs. SFPUC generally employed solid practices around appropriate and allowable invoicing, staying within contract limits, and approving labor hours and billing rates. However, inadequate planning and weak oversight in its task order administration caused the contract funds to be exhausted years earlier than anticipated. The audit also found that SFPUC needs to improve practices related to invoice approvals, use of employees as required, approval for high-value task orders, formal acceptance of PMC-submitted deliverables, document retention, meetings, and progress reports.
The full report can be found here.