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State of New Jersey
Executive Order #155

Governor Jon S. Corzine
WHEREAS, the Mass Transit Tunnel project is the largest transit public works project in the United States, and includes the construction of two single-track rail tunnels under the Hudson River to service existing NJ Transit passenger rail lines, an expanded New York Penn Station and other key elements to address the pressing regional transportation needs; and

WHEREAS, the Mass Transit Tunnel project will supplement the link between New Jersey and New York and benefit the regional economy with improved rail transportation and will provide significant environmental benefits; and

WHEREAS, the Mass Transit Tunnel project is expected to create and sustain 6,000 construction related jobs annually through completion of the project; and

WHEREAS, the Mass Transit Tunnel project is expected to create 44,000 permanent jobs and add nearly $10 billion to the Gross Regional Product after completion; and

WHEREAS, the Mass Transit Tunnel project is being constructed by NJ Transit, in partnership with the Port Authority of New York and New Jersey (“Port Authority”); and

WHEREAS, funding for the $8.7 billion cost of the Mass Transit Tunnel project will come from the State of New Jersey, NJ Transit, the New Jersey Turnpike Authority, the Port Authority, and the federal government; and

WHEREAS, under the General Project Agreement entered into by NJ Transit and the Port Authority, NJ Transit has been designated the lead agency and federal sponsor for the Mass Transit Tunnel and has primary responsibility for the design, construction and management of the project; and

WHEREAS, under the General Project Agreement, NJ Transit will be responsible during the life of the Mass Transit Tunnel project for procuring and administering the solicitation of bids, awards of construction contracts and equipment procurement contracts, and design and construction management contracts for the project, and various other contracts of all types; and

WHEREAS, under the General Project Agreement, NJ Transit will be responsible during the life of the Mass Transit Tunnel project for the acquisition of all real property located in the State of New Jersey, and the Port Authority will be responsible for the acquisition of all real property located in the State of New York needed to construct, maintain and operate the project; and

WHEREAS, transparency and accountability are paramount to ensuring the responsible expenditure of funds for the Mass Transit Tunnel project; and

WHEREAS, it is imperative that contracts for the Mass Transit Tunnel project, like all state contracts, be awarded to vendors in a manner that is fair, transparent, and designed to ensure that the project receives the benefit of quality services and products at the lowest price from responsible bidders; and

WHEREAS, it is imperative that construction on the Mass Transit Tunnel project be within budget and on schedule; and

WHEREAS, the Federal Transit Administration has agreed to provide $3,000,000,000 in New Starts funding, which will require NJ Transit to deliver the project on time and on budget and to fully cooperate with the Federal Transit Administration and its oversight consultants in their monitoring of the design and construction of the Mass Transit Tunnel and their enforcement of all applicable Federal statutes, regulations and program requirements, including project management practices, risk management strategies, real estate acquisition, environmental compliance, contract management, constructability reviews, and project schedule and budget validation; and

WHEREAS, a key governance reform initiative of this administration was the enactment of legislation creating the independent Office of the State Comptroller to provide integrity, increased accountability, and oversight regarding spending and contracting by State agencies, independent State authorities, and other entities; and

WHEREAS, the provisions of this Order regarding the Office of the State Comptroller have been developed in consultation with and with the concurrence of the State Comptroller;

NOW, THEREFORE, I, JON S. CORZINE, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT:

  1. Pursuant to its duties as set forth in N.J.S.A. 52:15C-1 et seq., the Office of the State Comptroller shall monitor the procurement of contracts by NJ Transit and any other State agencies and independent State authorities involved in the Mass Transit Tunnel project.

  2. Pursuant to its duties set forth in N.J.S.A. 52:15C-1 et seq., the Office of the State Comptroller shall provide guidance to the entities involved in the Mass Transit Tunnel project concerning internal controls and accounting.

  3. As part of its powers pursuant to N.J.S.A. 52:15C-8, the Office of the State Comptroller shall undertake analysis and review of all internal and external financial audits of the Mass Transit Tunnel project to ensure the adequacy of internal controls and determine whether additional oversight is needed to keep the project within budget.

  4. The Office of the State Comptroller shall conduct its oversight of the Mass Transit Tunnel project in cooperation with the Auditor General of NJ Transit, the inspectors general or other appropriate officers of the Port Authority, the Federal Transit Administration, the United States Department of Transportation, and other appropriate State and federal officers responsible for oversight of this project.

  5. NJ Transit shall provide to the Governor quarterly written reports that are consistent with the information it provides to the Federal Transit Administration on the status of the project. The reports shall include detailed information concerning the schedule and budget status of the project and, if necessary, action plans for meeting or returning to scheduling and budgetary benchmarks.

  6. This Order shall take effect immediately.

GIVEN, under my hand and seal this 6th day of Octber
Two Thousand and Nine, and of the Independence of
the United States, the Two Hundred and Thirty-Fourth.

/s/ Jon S. Corzine

Governor

[seal]

 

Attest:

/s/ William J. Castner, Jr.

Chief Counsel to the Governor

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