Engagement Memo—Next-Generation High-Speed Trainset Program (Project code 002-2017)

We are initiating a review of the Company’s Next-Generation High-Speed Trainset Program. Our objectives are to (1) assess the effectiveness and efficiency of the company’s framework and processes for managing the trainset contract, and (2) evaluate the adequacy of the planning and cost estimating for the associated infrastructure improvements on the Northeast Corridor.

During the audit, we plan to analyze documents and data related to the procurement of the next-generation trainsets and infrastructure improvements on the Northeast Corridor. Our request for documents and program data will be made as our work progresses. We also plan to interview company officials involved in managing and overseeing the trainset procurement and the related infrastructure improvements. We will work to minimize the impact of the audit by coordinating interviews and observations with staff in advance.