By State Street Wire Staff | November 26th, 2012 - 10:39am
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TRENTON – The state missed an opportunity to save $12.6 million over a two-year period related to vehicle inspections, a new report from the state Auditor claimed.

The state reported Monday that although safety inspections were eliminated as part of required vehicle inspections, the cost of those safety inspections was not removed from a per-vehicle inspection rate the state paid to Parsons Environment and Infrastructure Group.

Consequently, the state Motor Vehicle Commission missed the chance to save that money from Aug. 1, 2010 to Sept. 30, 2012, the Auditor claimed

The state contends MVC still could save $7.8 million from October to the end of the contract by amending it.

The state recommends that MVC limit state-funded reinspections to one, which would save $2 million from October of this year to next November.

IT overhaul

On another matter, the audit found that a “poorly written” contract led to cost overruns for a project that began in March 2006 and remains unfinished.

The project was to have cost $62.5 million, but now may cost $104 million, the audit stated.

Response

MVC responded that the fact safety inspections were eliminated does not automatically reduce contract price.

The purpose of any adjustment is to put the contractor into a position it would have been in had the change not occurred, MVC responded.

MVC also said it would review the recommendation to limit the reinspections.

 

MVC also said the Legislature would have to change the law in order to permit charging motorists for reinspections.

Regarding the IT contract, MVC said it reached agreement with an oversight vendor for reduced rates.

 

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