From fiscal years 2011 through  2017, state and local jurisdictions contributed on average about $340  million annually to WMATA, generally for capital purposes. WMATA’s New Capital Planning Process Could Address Some Previous Weaknesses WMATA Identified, but the Process Does Not Have Documented Policies and Procedures and Has Other Weaknesses

WMATA’s new capital planning process could address some of the  weaknesses it identified in the previous process, such as better  distinguishing capital needs (investments in groups of related assets)  from capital projects (investments in specific assets). Policies and Procedures to Guide the New Capital Planning Process

Although WMATA established policies and procedures for prioritizing  capital needs—that is, investments in groups of related assets—for the  2016 Capital Needs Inventory, it has not established documented policies  and procedures for the new capital planning process, including how  WMATA will rank and select individual projects to address those needs  through its annual capital budgets and Six-Year Capital Improvement  Program. WMATA has proposed a fiscal year 2020  capital budget of $1.4 billion. In addition, WMATA’s plan to document  steps taken in implementing the new process as it is occurring does not  provide reasonable assurance that WMATA is making decisions using a  consistent process to direct investments toward WMATA’s highest priority  needs. Without a documented  planning process that includes procedures for ranking and selecting  projects for funding in the fiscal year 2020 capital budget, WMATA’s  stakeholders lack reasonable assurance that WMATA’s capital  investment decisions will be made using a sound and transparent  process. WMATA Reported Significant Progress toward Goals, but the Track Preventive Maintenance Program Does Not Fully Align with Leading Practices

		WMATA Has Reduced Both Track Defect Incidents and Electrical Fires but Faces Challenges Implementing Its Track Preventive Maintenance Program

WMATA has reported significant progress toward its goals of reducing  track defects and fire incidents, but still faces several challenges with  implementing its track preventive maintenance program. According to WMATA officials, within the track preventive maintenance  program WMATA seeks to reduce incidents specifically caused by  electrical wayside fires and track defects each by 50 percent from fiscal  year 2017 to fiscal year 2019. For example, in implementing its “cable meggering”  initiative, WMATA established a goal to inspect and replace electric  cables across its entire rail system within 4 years. In developing the track preventive maintenance program, WMATA did not  fully identify or quantitatively assess risks associated with the program. As previously mentioned, non-electrical fires—which were not included in  the scope of the program or risk assessment—did not change from fiscal  year 2017 through 2018 and represent approximately 30 percent of all  fires on the system over those years. Specifically, without a risk  assessment that uses quantitative and qualitative data to assess risks— such as data for all fires on the system and qualitative risks such as  securing sufficient time for maintenance—WMATA lacks assurance that  the program is comprehensively designed to address risks affecting the  safety of the rail system or other risks that could hinder the program’s  success. Recommendations for Executive Action

We are making the following five recommendations to WMATA. Appendix I: Objectives, Scope and Methodology

This report examines: (1) How WMATA expended its capital funding from  fiscal years 2011 through 2017; (2) How WMATA’s new capital planning  process addresses weaknesses it identified in the previous process; and  (3) WMATA’s progress toward its track preventive maintenance goals and  how the program aligns with leading program management practices. Furthermore, we compared WMATA’s capital planning practices to  leading practices identified in GAO’s Executive Guide.
Why GAO Did This Study

Safety incidents in recent years on WMATA's rail system have raised questions about its processes for performing critical maintenance and replacing capital assets. WMATA initiated a new preventive maintenance program for its rail track in 2017, and is currently implementing a new capital planning process.
GAO was asked to examine issues related to WMATA's capital funding and maintenance practices. This report examines: (1) how WMATA spent its capital funds from fiscal years 2011 through 2017, (2) how WMATA's new capital planning process addresses weaknesses it identified in the prior process, and (3) WMATA's progress toward its track preventive maintenance program's goals and how the program aligns with leading program management practices. GAO analyzed WMATA's financial and program information, interviewed officials of WMATA, the Federal Transit Administration, and five transit agencies selected for similarities to WMATA. GAO compared WMATA's capital planning process and track maintenance program with leading practices.

What GAO Found

From fiscal years 2011 through 2017, the Washington Metropolitan Area Transit Authority (WMATA) spent almost $6 billion on a variety of capital assets, with the largest share spent on improving its rail and bus fleet (see figure). Over this period, WMATA's capital spending was, on average, about $845 million annually.
WMATA's new capital planning process could address some weaknesses it identified in the prior process. WMATA established a framework for quantitatively prioritizing capital needs (investments to a group of related assets) over a 10-year period. However, WMATA has not established documented policies and procedures for implementing the new process, such as those for selecting specific projects for funding in its annual capital budget. WMATA is currently using its new capital planning process to make fiscal year 2020 investment decisions. WMATA has proposed a fiscal year 2020 capital budget of $1.4 billion. Without documented policies and procedures for implementing the new planning process, WMATA's stakeholders do not have reasonable assurance that WMATA is following a sound process for making investment decisions.
WMATA has made significant progress toward its track preventive maintenance program's goals, which are to reduce both track-defect and electrical-fire incidents by 50 percent in fiscal year 2019 compared with 2017. In fiscal year 2018, WMATA met its goal for reducing track defect incidents and reduced electrical fire incidents by 20 percent. However, in designing the program, WMATA did not fully assess risks. For example, WMATA did not quantitatively assess the impact of track defects or electrical fires on its ability to provide service, nor did it consider other risks such as non-electrical track fires, which represent about 30 percent of all fires on the system, or other factors, such as resources or track time. Without a comprehensive risk assessment, WMATA lacks reasonable assurance that the program is designed to address risks affecting the safety of the rail system or other risks that could hinder the new program's success.

What GAO Recommends

GAO is making five recommendations, including that WMATA establish documented policies and procedures for the new capital planning process and conduct a comprehensive risk assessment for the track preventive maintenance program. WMATA described actions planned or underway to address GAO's recommendations. GAO believes the recommendations should be fully implemented, as discussed in the report.