Pulling Plug on Safety Summit Cost Nearly $100K, Inspector General Says

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The abrupt cancellation of a safety summit in December could cost the Federal Highway Administration as much as $96,171, a federal investigation has found.

The agency so far has paid $31,792 to outside meeting planners and public relations firms even though the Truck and Bus Safety Summit was not held, according to an audit by the Department of Transportation’s inspector general.

The hotel that was to hold the conference dropped a $129,632 claim for lost room rental, food and beverage revenue. A FHWA official said the agency is negotiating with other vendors to reduce the cost of the cancellation.

“The final cost of the cancellation is still to be determined,” said Gail Shibley, director of public affairs at the highway agency. “The negotiations are likely to result in a significant reduction of cost.”

Inspector General Kenneth Mead initiated the audit in December after learning from a TRANSPORT TOPICS reporter that the summit was sponsored by the renamed Office of Motor Carriers.

The inspector general’s audit answers some of the questions raised in the fall about the summit’s cancellation. FHWA refused to provide information about the cost of the cancellation to TT in December, even though the publication filed a request for the contracts under the Freedom of Information Act.

Planning for the conference began more than a year ago. OMC, which was later merged with the Office of Highway Safety to form the Motor Carrier and Highway Safety business unit, reserved guest rooms and meeting facilities at the Ritz Carlton Hotel in downtown Atlanta and organized meetings with 15 issue leaders.

Over the course of the year, OMC incurred costs of $91,170 for summit planning and registration, public relations, promotional materials and meeting rooms, the auditors found.

For the full story, see the April 5 print edition of Transport Topics. Subscribe today.