Response to Board of Trustees Questions Related to the
PMO
Based on E-mail Below Dated 2/6/2019
Hi David I have rec’d some questions from board members related to the
PMO and need some assistance in responding:
1. Can you send back-up data and an explanation of why the
CFE claims there’s a $1.8m over budget issue? Also when did
he know about it, who did he spoke to about it and why was
it never presented to the board until he mentioned it at
FMPOC?
The data is based on actual financial performance expenditures
for the first year of operations (period of Qtr. 4, 2017 thru Qtr. 3,
2018). The $1.8 million constitutes what is contractually allowed
based on a 3.5% performance criteria of board approved “work-inplace” (ie, contracts, task order agreements, etc.). District Staff
became aware of this issue at the time that KPMG began their
performance audit (approximately April/May 2018). At that time,
staff instructed KPMG to audit Jacobs contract obligations and
performance. The auditors made the following finding:
Observation 1: Jacobs did not complete all contractual
deliverables on time, and some deliverables remain in-progress.
Staff spoke to me about the nature of a potential issue, but it was
not until KPMG conducted their final analysis that the issue was
verified. The reason that it was not presented to the Board earlier
is because the review and approval protocol dictates that it needs
to be presented to FMPOC first and then to the Board for final
approval. This approval will take place at today’s Board meeting
(2/6/19).
2. What is the year 1 (PMO contract) project approval amount
and the actual payments/expense for Jacobs as the PMO for
the Bond program?

 The project approval amount for the first year of the Jacobs
contract is $334.58 million (based on actual “work-in-place”). The
actual payments/expense for Jacobs as the PMO for the Bond
program is $13.54 million. Please note, the Jacobs billing
allowance is 3.5% of “work-in-place,” which amounts to $11.71
million. The difference is $1.83 million.
3. Can you explain to me the performance based aspect of the
PMO contract?
The performance based criteria of the Jacobs contract stipulates
that they can only bill for a maximum of 3.5% of actual work-inplace. It is not based on proposed staffing plans or forecasts
submitted by Jacobs. This is a critical contractual distinction that
needs to be understood fully. Furthermore, in order for the
program to be successful, staff will monitor performance metrics
on a monthly basis to ensure that the provisions of the contract
are met.

Thanks, FCR