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<classification authority="sudocs">GA 1.13:RCED-97-47</classification>
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 <subject>Highway planning</subject>
 <subject>Bridges</subject>
 <subject>Cost control</subject>
 <subject>Environmental impact statements</subject>
 <subject>Public roads or highways</subject>
 <subject>Federal aid for highways</subject>
 <subject>Road construction</subject>
 <subject>Cost effectiveness analysis</subject>
 <subject>State-administered programs</subject>
 <subject>Intergovernmental fiscal relations</subject>
 <identifier>Interstate Highway System</identifier>
 <identifier>Central Artery/Tunnel Project (Boston, MA)</identifier>
 <identifier>FHwA Interstate Construction Program</identifier>
 <identifier>California</identifier>
 <identifier>Woodrow Wilson Bridge (VA)</identifier>
 <identifier>Salt Lake City (UT)</identifier>
 <identifier>Oakland Cypress Viaduct (CA)</identifier>
 <identifier>Arkansas</identifier>
 <identifier>Maryland</identifier>
 <identifier>Michigan</identifier>
 <identifier>Texas</identifier>
 <identifier>DOT Fiscal Management Information System</identifier>
 <identifier>National Performance Review</identifier>
 <identifier>FHwA Federal-Aid Highway Program</identifier>
 <identifier>FHwA Highway Bridge Replacement and Rehabilitation Program</identifier>
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<titleInfo>
 <title>Transportation Infrastructure: Managing the Costs of Large-Dollar Highway Projects</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Federal Highway
Administration&apos;s (FHwA) oversight of large-dollar highway projects,
focusing on: (1) whether large-dollar highway projects experience cost
growth; (2) how FHwA approves large-dollar projects and agrees to their
costs; and (3) how FHwA ensures that project costs are controlled and
that federal funds are efficiently used.&lt;p/&gt;GAO found that: (1) cost growth has occurred on many of the large-dollar
projects that GAO examined, however, the amount of and reasons for these
increases beyond the initial cost estimates on large-dollar highway
projects cannot be determined because data to track this information
over the life of projects are not readily available from FHwA or state
highway departments; (2) as of August 1996, costs on 23 of 30 ongoing
projects initially estimated to cost more than $100 million had
increased from their initial estimates, while estimates on seven
projects had decreased or had remained the same; (3) FHwA&apos;s project
approval process consists of a series of incremental actions that occur
over the period of years required to plan, design, and build a project;
(4) FHwA approves the estimated cost of a large-dollar project in
segments, rather than agreeing to the total cost of the project from the
outset; (5) by the time FHwA approves the cost of a large-dollar
project, a public investment decision may have effectively been made
because substantial funds will already have been spent on designing the
project and the project&apos;s estimated costs will have already occurred;
(6) while many factors can cause costs to increase, several factors
worked together to increase costs beyond the initial estimates for
projects in the six states visited: (a) initial estimates are
preliminary and not designed to be reliable predictors of a project&apos;s
costs; (b) initial estimates are modified to reflect more detailed plans
and specifications as a project is designed; and (c) a project&apos;s costs
are affected by, among other things, inflation and changes in scope to
accommodate economic development that occurs over time; (7) FHwA has
done little to ensure that cost containment is an integral part of the
states&apos; project management; (8) FHwA influences the cost-effectiveness
of projects by its review and approval of design and construction plans
and through daily interaction with state departments of transportation;
(9) some states GAO visited have initiated project management practices
that focus on cost containment; (10) however, FHwA, has not been
proactive in working with states to evaluate these practices and
disseminate information on them to help other states enhance their cost
management practices; and (11) the debate has already begun on the
appropriate federal role in funding and overseeing federal-aid highway *</abstract>
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<identifier type="preferred citation">GAO/RCED-97-47</identifier>
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<note>Chapter Report</note>
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 <searchTitle>GAO/RCED-97-47; Transportation Infrastructure: Managing the Costs of Large-Dollar Highway Projects;
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<subject>
 <topic>Highway planning</topic>
 <topic>Bridges</topic>
 <topic>Cost control</topic>
 <topic>Environmental impact statements</topic>
 <topic>Public roads or highways</topic>
 <topic>Federal aid for highways</topic>
 <topic>Road construction</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>State-administered programs</topic>
 <topic>Intergovernmental fiscal relations</topic>
 <topic>Interstate Highway System</topic>
 <topic>Central Artery/Tunnel Project (Boston, MA)</topic>
 <topic>FHwA Interstate Construction Program</topic>
 <topic>California</topic>
 <topic>Woodrow Wilson Bridge (VA)</topic>
 <topic>Salt Lake City (UT)</topic>
 <topic>Oakland Cypress Viaduct (CA)</topic>
 <topic>Arkansas</topic>
 <topic>Maryland</topic>
 <topic>Michigan</topic>
 <topic>Texas</topic>
 <topic>DOT Fiscal Management Information System</topic>
 <topic>National Performance Review</topic>
 <topic>FHwA Federal-Aid Highway Program</topic>
 <topic>FHwA Highway Bridge Replacement and Rehabilitation Program</topic>
</subject>
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