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RCED-83-82 1 (1982-12-22)

handle is hein.gao/gaobabnam0001 and id is 1 raw text is: UNITED STATES GENERAL' ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PL'-OUAC., COMUNITY. kND ECONOMWC OEVELOPMENT DIVISION B-210196 DEC 2 2 The Honorable Arthur E. Teele, Jr. Administrator, Urban Mass Transportation Administration 121876 Department of Transportation 117 Dear Mr. Teele: Subject: Need to Periodically Reassess Mass Transit Construction Projects (GAO/RCED-83-82) Because the Urban Mass Transportation Administration (UMTA) has made large expenditures over the past decade to finance con- struction of capital projects, GAO undertook a review of UMTA's policies for project administration. UMTA requires transit alter- natives analysis to assure that only the most meritorious projects are approved for engineering and construction. However, UMTA policy should require reassessment, or analysis of project options, of major capital projects when changing conditions indicate that the project will not Ahip p nnoA -'- UMTA POLICIES DO NOT REQUIRE PROJECT REASSESSMENT Although UMTA requires extensive planning and analysis to assure feasibility and need before approving capital projects, it does not require project reassessment even if, during the proj- ect's engineering and early construction phases, changed condi- tions indicate that the project will not meet its original objectives. Section 3 of the Urban Mass Transportation Act of 1964, as amended, authorizes UMTA to make discretionary grants to assist States and local public agencies in financing mass transit acqui- sition, construction, and improvement projects. Capital assis- tance grants are awarded for up to 80 percent of the total project costs, with State and local sources supplying 20 percent. Since 1965, UMTA has provided over $18.1 billion in capital grant funds. In recent years, UMTA has taken several significant. steps to assure that only the most meritorious projects are approved for UMTA capital assistance. UMTA approves capital improvement proj- ects pursuant to major investment guidelines that require project proposals to undergo alternatives analysis, which consider a number of alternative transportation modes, cost estimates, and ridership projections. For major rail projects, UMTA and the grant recipient O ,WL{I (345562)

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