Caltrans Union Seeking Probe Into Use of Outside Firms : Contracts: Labor group says using private businesses is ‘wasteful.’ State official and trade group deny it’s inefficient.

The union for Caltrans highway design employees, stepping up its battle over the state’s use of outside contractors, on Thursday called the agency’s contracting program “wasteful and inefficient” and asked for a state audit.

The union, Professional Engineers in California Government, sent a formal request to the state controller’s office to investigate its charges against the agency’s use of outside architects, engineers and surveyors.

In a press conference, union leaders said the state Department of Transportation is not only wasting “massive” amounts of money on the contracting program but is also leaving the door open for corruption by awarding contracts without competitive bidding.

“Many of these firms’ poor performances directly result in higher costs and project delays,” said Robert McNew, the union’s president.

Union members at the press conference in Sacramento cited delays, shoddy work and cost overruns by outside companies as cause for a state investigation.

Though union officials said the controller’s office had agreed to conduct an audit, office spokesman Edd Fong said no decision had yet been made.

The union’s tough talk drew sharp responses both from Caltrans and the California Engineers and Land Surveyors of California, a trade group for nearly 600 companies certified to work for Caltrans.

The Professional Engineers in California Government “has accused the state of everything from corruption to misuse of public funds in a cynical effort to mislead the public regarding the use of private engineering firms,” said James van Loben Sels, the agency’s director. He termed the union’s allegations “false” and a “distortion” of the contracting program.

Paul J. Meyer, executive director of the trade group, discounted the union’s actions, saying that outside consultants cost no more than state employees and receive fewer job benefits.

The union, which represents most of the 8,000-member design staff at Caltrans, has fought agency efforts to send work to outside firms under a 1989 state law. Courts have ruled that the state Constitution requires state work to be done by state employees, and a judge has restricted the use of the state law.

The situation boiled over two months ago when the agency, responding to ongoing court orders, decided to freeze all contracts and, later, to end most outside contracts by the end of the year.

Private companies fought back, getting a bill through the state Senate to encourage more outside contracts and winning a temporary court order last week to reinstate the contracts.