[Congressional Record Volume 161, Number 60 (Thursday, April 23, 2015)]
[Extensions of Remarks]
[Page E571]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 THE INTRODUCTION OF A BILL TO ENSURE THAT THE METROPOLITAN WASHINGTON 
      AIRPORTS AUTHORITY COMPLIES WITH FEDERAL AUDITING STANDARDS

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                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                        Thursday, April 23, 2015

  Ms. NORTON. Mr. Speaker, I rise today to introduce a bill to prohibit 
federal funds from the U.S. Department of Transportation (DOT) from 
being disbursed to the Metropolitan Washington Airports Authority 
(MWAA) unless DOT certifies that MWAA is complying with audit 
standards. There have been some improvements at MWAA, but significant 
failures in MWAA's contracting, auditing, and hiring policies and 
practices pointed to a need for systemic reform in MWAA's acquisition, 
auditing, and hiring processes. Despite being created by Congress, 
leasing federally owned land, and benefiting from significant federal 
taxpayer funds, MWAA is not subject to federal procurement, auditing or 
nepotism laws. However, MWAA has been taking steps to address these 
shortcomings.
  MWAA is an independent public body created by Congress under the 
Metropolitan Washington Airports Act of 1986 (Airports Act). MWAA, with 
1,400 employees, leases Ronald Reagan Washington National Airport and 
Washington Dulles International Airport from the federal government. In 
addition to managing the airports, MWAA is responsible for the Dulles 
Corridor Metrorail Project, which has an estimated cost of $5.8 
billion, including $977 million in federal funds. In 2012, DOT 
appointed a Federal Accountability Officer, who reports directly to the 
Secretary, to ensure MWAA follows the DOT Inspector General's (IG) 
recommendations.
  A 2012 DOT IG report, ``MWAA's Weak Policies and Procedures Have Led 
to Questionable Procurement Practices, Mismanagement, and a Lack of 
Overall Accountability'' (Report Number: AV-2013-006) (IG Report), 
found that ``MWAA's contracting policies and practices are insufficient 
to ensure compliance with the Airports Act and the lease agreement 
between DOT and MWAA.'' For example, the Airports Act and lease 
agreement require MWAA to award contracts over $200,000 competitively 
to the maximum extent practicable. However, the IG Report found that 
MWAA had recently awarded two-thirds of its contracts exceeding 
$200,000 with limited competition. The IG Report also noted that MWAA 
awarded many contracts with no formal solicitation. After the IG 
Report, MWAA immediately took action and has closed out 10 of 12 
recommendations and MWAA has adopted as much of the Federal Acquisition 
Regulations as are applicable to MWAA. Still, there are significant 
issues sighted in a recent draft DOT IG report on the Office of Audits 
that virtually mandates greater monitoring.
  A January 15, 2013, Washington Post article reported that at least 10 
percent of MWAA employees have family members working there, including 
spouses and children. The IG report also noted that MWAA lacked 
``sufficient controls to detect and prevent nepotism.'' It is clear 
that changes were imperative and overdue. The lack of transparency and 
competition on MWAA's contracts and hiring were inconsistent with 
continued ownership of the airports by the federal government, MWAA's 
creation by Congress, and the significant federal taxpayer dollars MWAA 
receives. The IG Report's conclusion that procurement procedures and 
hiring policies in place were inadequate required a response that 
definitively fixed these issues. MWAA has updated its policies, and 
nepotism appears to no longer be a problem.
  A current draft DOT IG report on the Office of Audits raises a number 
of questions regarding MWAA's internal auditing procedures. It finds 
that there have been no outside reviews of the Office of Audits and 
that the office has not adopted standards and lacked sufficient 
oversight. MWAA has responded to this draft report by taking initial 
steps to restructure the office. MWAA has updated its regulations so 
that the head of the Office of Audits will now report directly to the 
Board of Directors as well as the President & CEO. MWAA has also 
adopted the Institute of Internal Auditors standards, and it is 
undergoing a national search for a new internal auditor and external 
auditor.
  The steps MWAA has taken to address the findings of the DOT IG are 
commendable. However, considering the outstanding issues, continuous 
oversight is essential. To further assist MWAA, I am offering this bill 
so that DOT will continue to have direct oversight over MWAA and access 
to audit materials.
  I urge support of this bill.

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