New Report: Amtrak can more effectively ensure it awards contracts in its best interest

July 2, 2025


WASHINGTON – Amtrak has opportunities to better ensure contracts that it awards are in its best interest, an Amtrak Office of Inspector General Report released today found.


The OIG examined the pre-award phase of Amtrak’s procurement process and found that certain contracting activities generally worked well, but it also identified areas where weaknesses place the company at greater risk of paying more than it should for goods and services.

ELECTRICAL TECHNICIAN RESIGNS AFTER FAILING TO REPORT ARREST AND TAKING FMLA WHILE INCARCERATED

An Electrical Technician based in Washington, D.C., was arrested for driving more than 100 miles per hour while pursued by police and passing vehicles on the shoulder. He was charged with driving under the influence and other driving violations. He was held without bond on December 18, 2024, and remains incarcerated until his jury trial scheduled for March 17, 2025. While incarcerated, he applied for leave under the Family Medical Leave Act and failed to report his arrest to the company. The former employee resigned on January 29, 2025. He is ineligible for rehire. 

Financial Management: Quality Control Review of the Independent Audit of Amtrak’s Consolidated Financial Statements for Fiscal Year Ended 2024

Amtrak (the company) contracted with the independent certified public accounting firm of Ernst & Young LLP to audit its consolidated financial statements as of September 30, 2024, and for the year then ended, and to provide a report on internal control over financial reporting and on compliance and other matters. Because the company receives federal assistance, it must obtain an audit performed in accordance with generally accepted government auditing standards.

Engagement Memo-Hudson Tunnel Project

We are initiating a review of the Hudson Tunnel Project, a multibillion dollar effort to construct a new rail tunnel under the Hudson River and rehabilitate the existing North River Tunnel. This project is a key component of the Gateway program to upgrade and replace rail infrastructure between Newark, New Jersey, and New York City. The Gateway Development Commission (GDC) - a public and government sponsored authority created by the states of New York and New Jersey—is the lead sponsor of the project.

Amtrak can better use its customer service data to improve the customer experience

April 22, 2024

WASHINGTON – Amtrak can better use the data it already collects to improve the customer experience, according to a report from the Amtrak Office of Inspector General released today.

 

The OIG identified three opportunities, mostly related to communications, for Amtrak to use its customer feedback data to bolster its overall service improvement efforts.

 

CAR INSPECTOR LOSES SENIORITY, IS REMOVED FROM SERVICE FOR WORKING OUTSIDE JOBS ON MEDICAL LEAVE

An Amtrak car inspector based in New York, New York, violated company policies by engaging in outside employment as a bus operator; providing security services at night clubs, lounges, and bars; and working as a bouncer while on a medical leave of absence. The employee was on a medical leave of absence from the company since November 8, 2015, and had not returned to work. On March 6, 2024, after his corporate trial and in accordance with his union agreement, the employee forfeited his seniority and is considered out of service.

MANAGER OF CLINICAL LABORATORY SENTENCED FOR HEALTH CARE FRAUD

David Pugliese, a resident of Palm Beach County, Florida, was sentenced on January 12, 2024, in U.S. District Court, Southern District of Florida, for Conspiracy to Commit Health Care Fraud. Pugliese was sentenced to 30 months in prison, two years’ probation, and was ordered to pay restitution in the amount of $2,238,699. Pugliese was the manager and registered agent of Capital Advantage Diagnostics, LLC, which was purportedly in the business of performing a variety of laboratory tests for various health care providers.

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