The BART Office of the Inspector General (OIG) has released a new report identifying concerns with a billing practice that distorted actual project costs at BART.

The investigation found that an on-call construction management firm used “proportional billing,” a method that spread labor costs across multiple projects rather than billing for actual work performed. BART accepted and paid invoices using this approach, including charges applied to projects that had already been completed.

We also identified invoices that lacked sufficient supporting documentation, limiting the ability to assess the accuracy and purpose of billed costs. In addition, the use of proportional billing did not appear to be isolated to a single firm, suggesting the practice may have been more widely used.

This billing approach violated contract requirements, reduced transparency into true project costs, and created risks related to the misuse of public funds. It also increased the risk of potential fraud by making it more difficult to track costs to the work actually performed.

Ensuring that contractors and BART staff adhere to contract terms is essential to maintaining accountability and public trust. When billing practices do not align with actual work performed, it undermines transparency and increases the risk of improper payments.

To address these issues, the OIG recommended that BART discontinue the use of proportional billing, evaluate whether the California False Claims Act applies, and consider imposing restrictions on vendors, as appropriate.

We encourage you to review the summary video and full report for detailed insights:

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Thank you for your continued interest in our work. For access to all BART Office of the Inspector General reports, please visit our website at www.bart.gov/oig.

Sincerely,

Claudette Biemeret
Inspector General
Email: InspectorGeneral@bart.gov
Phone: 510-464-6141