H.R. 6435: Transportation Megaprojects Accountability and Oversight Act

This bill, titled the Transportation Megaprojects Accountability and Oversight Act, aims to improve the oversight and management of large transportation projects in the United States, specifically those expected to cost $2.5 billion or more. Below is a summary of its key provisions:

Definition of Megaprojects

The bill establishes a definition for “megaprojects” as projects with estimated costs of $2.5 billion or more, along with any additional projects identified by the Secretary of Transportation.

Comprehensive Risk Management

Recipients of federal financial assistance for megaprojects will be required to submit a comprehensive risk management plan that includes:

• A process to identify, quantify, and monitor risks that could lead to cost overruns, delays, reduced quality, or diminished benefits.
• Examples of mechanisms to track identified risks.
• A plan to control those risks.
• Regular submission of updated cost estimates and maintenance of financial reserves for known and unknown risks.

Peer Review Group

Recipients must establish a peer review group within 90 days after a megaproject is authorized for construction. This group will consist of at least five individuals, including one with project management experience, to provide expert advice on various aspects of the megaproject. The bill outlines:

• Guidelines for recruiting and selecting members, which will be published.
• A conflict of interest provision ensuring no member has a financial interest in the project.
• Annual meetings of the peer review group until project completion, with requirements for reviews and reports on scope, schedule, and budget changes.

Transparency Requirements

To enhance transparency, recipients of federal funding must publish the following information on their websites:

• The name, license number, and type of each engineer supervising the project.
• Reports from the peer review group, made available within 90 days of submission.

Establishment of a Transportation Megaprojects Committee

The bill calls for the Secretary of Transportation to work with the Transportation Research Board to establish a committee focused on megaproject issues. This committee will:

• Conduct literature reviews and assess existing megaproject studies.
• Review foreign experiences with megaprojects, particularly from the UK and France.
• Identify common problems associated with megaprojects.
• Propose strategies for addressing issues in federal and state contexts.
• Recommend changes to funding and oversight approaches for megaprojects.

Reporting Requirements

Within three years of its formation, the committee must submit a report detailing its findings and recommendations to the Secretary of Transportation and relevant congressional committees.

Applicability

The provisions described in this bill will apply to megaprojects authorized for construction one year after the bill becomes law.

Relevant Companies

• FLR (Fluor Corporation): As an engineering and construction company, Fluor is likely to be directly impacted by the increased regulatory and oversight requirements for megaprojects, potentially affecting its project strategies and operational protocols.
• STRL (Sterling Construction Company): Similarly, Sterling, involved in heavy civil construction, may face impacts related to compliance with the new oversight and management plans for large projects it undertakes.
• RYI (Ryerson Holding Corporation): As a supplier of metals and other materials for construction, Ryerson could witness shifts in demand based on how megaprojects manage risk and transparency in their supply chains.