SANDAG auditor: Contracts riddled with oversight gaps

Independent auditor finds $70M in sole-source deals plagued by missing documentation, repeat vendors, and cost increases of up to 3,300%

COUNTY — Millions of dollars in sole-source contracts over a two-year period are under the microscope by the Office of the Independent Auditor at the San Diego Association of Governments.

Courtney Ruby, the agency’s IPA, released a report on May 19 detailing SANDAG’s use of sole-source contracts as she and her team reviewed more than $70 million worth of agreements for various work. However, the audit found the agency lacked significant controls, repeated sole-source contracts to certain vendors, contracts lacked or were missing documentation, and increases between 64% to 3,300%, among other issues.

The OIPA reviewed contracts from July 1, 2022, through June 30, 2024. Contract amendments also qualify as a sole-source procurement when the contract scope or value is significantly changed. These limits are prescribed by SANDAG.

“The audit’s objective was to determine if SANDAG’s sole source procurements were properly processed and utilized only in limited circumstances,” the report reads. “While competitive bidding is the required method for acquiring goods and services in public sector procurements, sole source procurements are allowed in limited cases — such as when specialized needs make competition impractical or not in the public’s best interest.”

One of the biggest findings was in 2024 when the OIPA released a report regarding the problematic State Route 124 toll operations. SANDAG’s original contractors handling the toll operations were fired after it was revealed the back-end office system was faulty, incorrectly charging motorists, if at all, among other problems.

The scandal also led to two lawsuits, including a former finance director.