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Amtrak: Management and Accountability Issues Contribute to Unprofitability of Food and Beverage Service

GAO-05-761T Published: Jun 09, 2005. Publicly Released: Jun 09, 2005.
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Highlights

Amtrak has provided food and beverage service on its trains since it began operations in 1971. Amtrak has struggled since its inception to earn sufficient revenues and depends heavily on federal subsidies to remain solvent. While a small part of Amtrak's overall expenditures, Amtrak's food and beverage service illustrates concerns in Amtrak's overall cost containment, management and accountability issues. This testimony is based on GAO's work on Amtrak's management and performance as well as additional information gained from Amtrak and other transportation providers. This testimony focuses on (1) the provisions written into Amtrak's contract with Gate Gourmet to control costs, (2) the types of management controls Amtrak exercises to prevent overpayments, and (3) the information Amtrak collects and uses to monitor the service and to report to stakeholders such as its Board of Directors.

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AccountabilityContract administrationContractor paymentsContractorsCost analysisCost controlFinancial analysisFood servicesFood services contractsInternal auditsInternal controlsMonitoringPerformance measuresRailroad industry