Construction Contractor Prequalification Process Follow-Up

Photo shows two construction workers at the National Western Center.

 

The Department of Transportation & Infrastructure and Denver International Airport fully implemented two recommendations made in the original audit report. However, the department and airport only partially implemented one other, and they have not taken steps to address the risks two other recommendations had sought to resolve.

Updating the city’s prequalification rules and implementing internal procedures requiring the Prequalification Board to document its justification for assigned financial levels establishes a foundation for a more transparent prequalification process. Furthermore, the implementation of a formalized dual-review process of information prepared by the prequalification coordinator improves the accuracy of information presented to the Prequalification Board for prequalification determination.

Recommendation graphic show three implemented in green, five partially implemented in blue, and five not implemented in red.

Remaining Risks

The recommendations Transportation & Infrastructure and the airport did not fully implement present several lingering risks. Among them:

  • The department did not consistently follow new procedures that are designed to improve transparency.
  • Without a formal appeal or dispute process, contractors still have no way to appeal assigned financial levels when denied prequalification — leading to a less fair, less open, and less competitive procurement process.
  • Without verifying arrears and debarment status, the city risks potentially contracting with prohibited businesses.

Auditor's Letter

November 6, 2025

In keeping with generally accepted government auditing standards and Auditor’s Office policy, as authorized by city ordinance, we have a responsibility to monitor and follow up on audit recommendations to ensure city agencies address audit findings through appropriate corrective action and to aid us in planning future audits.

In January 2024, we audited the city’s construction contractor prequalification process and found transparency risks involving the city’s process to assign and communicate construction contractors’ financial limits:

  • The Prequalification Board does not document how it makes decisions and the city’s prequalification rules allow for subjective decision-making about prequalification and how the financial levels contractors are assigned.
  • The board does not tell contractors why they were assigned a certain financial level or how they can improve their standing, and city rules do not allow contractors to dispute their assigned financial levels.
  • The board is also not receiving accurate and complete information about potential city contractors.

The Department of Transportation & Infrastructure and Denver International Airport agreed to implement all five of our recommendations.

We recently followed up and found the Department of Transportation & Infrastructure and Denver International Airport fully implemented two recommendations, partially implemented one recommendation, and did not implement two recommendations.

Although the Department of Transportation & Infrastructure and Denver International Airport have made notable progress, they did not fully address all the risks associated with our original findings. Consequently, we may revisit these risk areas in future audits to ensure the city takes appropriate corrective action.

We appreciate the leaders and team members in the Department of Transportation & Infrastructure and Denver International Airport who shared their time and knowledge with us throughout the audit and the follow-up process. Please contact me at 720-913-5000 with any questions.

Denver Auditor's Office

Auditor's Signature

Timothy O'Brien, CPA

Timothy O'Brien Official Headshot

AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor

Denver Auditor's Office

201 W. Colfax Ave. #705 Denver, CO 80202
Email: auditor@denvergov.org
Call: 720-913-5000
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