Audit of the Massachusetts Port Authority

This is a state performance audit of the Massachusetts Port Authority, focused on how it managed design and construction contracts for the Logan Airport Terminal E renovation project.

“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of the Massachusetts Port Authority’s (Massport’s) administration of design and construction contracts for the Logan Airport Terminal E Renovation and Enhancement Project for the period July 1, 2014 through June 30, 2017.”

The audit looked at whether Massport followed the rules and contract terms when it hired and paid companies for the Terminal E work.

“In this performance audit, we examined whether Massport’s administration of its design service contract with AECOM USA of Massachusetts and its construction service contract with Suffolk Construction Company, Inc. was consistent with applicable laws, regulations, contractual terms and conditions, and other guidance.”

The project was large and expensive, with an estimated final contract value of $167 million, so the public has an interest in whether the work was handled properly.

“In June 2014 and March 2015, CP&EA awarded design and construction contracts to AECOM USA of Massachusetts and Suffolk Construction Company, Inc., respectively, to design and construct the Logan Airport Terminal E Renovation and Enhancement Project, with a combined estimated final contract value of $167 million.”

If you use Logan Airport, this project added and upgraded space in Terminal E, including gates, screening areas, passenger areas, and concessions.

“The project involved creating just under 100,000 square feet of new space and renovating 150,000 square feet of existing space to accommodate new and existing airlines and their fleets of aircraft.”

For each audit question, the auditor concluded Massport met the tested requirements.

“Below is a list of our audit objectives, indicating each question we intended our audit to answer and the conclusion we reached regarding each objective.”

The report does not list corrective actions or recommendations; it says agency management discussed the report and its comments were reflected.

“My audit staff discussed the contents of this report with management of the agency, whose comments are reflected in this report.”

The audit matters because Massport runs major transportation assets in Massachusetts and says its operations have a major effect on the regional economy.

“Massport’s combined operations have a major economic impact on the regional economy.”

A performance audit is a government review that checks whether an agency’s actions have enough evidence behind the auditor’s findings and conclusions.

“Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives.”