Improvements Are Needed To Strengthen the Benefit-Cost Analysis Process for the TIGER Discretionary Grant Program

Since its establishment in 2009, the Office of the Secretary’s (OST) Transportation Investment Generating Economic Recovery (TIGER) grant program has provided billions of dollars for infrastructure improvements and economic development. As part of the selection process for TIGER awards, OST evaluates each applicant’s project benefit-cost analysis (BCA), which shows the project’s economic benefits. Prior to fiscal year 2016, projects that did not demonstrate net economic benefits were disqualified, but for fiscal year 2016 and after, lack of economic benefit did not automatically disqualify projects. OIG conducted this audit because of the importance of BCAs to TIGER grant awardee selection. OIG’s objective was to assess OST’s policies and procedures for evaluating BCAs in determining which TIGER grant applications are forwarded for further review. OIG assessed the BCA process for the fiscal year 2015 and 2016 rounds.

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