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Kansas Legislative Division of Post Audit

Reviewing the Kansas Department of Transportation’s Response to Great Bend’s Historic Dragstrip Cost Share Project

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Print Report
Audit Team
Supervisor
Sarah Middendorf
Manager
Katrin Osterhaus
Published March, 2025
Print Report

Introduction

Senator Rick Wilborn requested this limited-scope audit, which was authorized by the Legislative Post Audit Committee at its June 18, 2024 meeting.

Objectives, Scope, & Methodology

Our audit objective was to answer the following question:

  1. What steps has the Kansas Department of Transportation taken to respond to shortcomings with the Great Bend Historic Dragstrip project?

The scope of our work included reviewing the Kansas Department of Transportation’s (KDOT) Cost Share Program informational materials, the project proposal and agreement for the reconstruction of the dragstrip in Great Bend, written correspondence between involved parties, and project payment requests and reimbursements. We also talked with officials at KDOT and the City of Great Bend to understand the dragstrip Cost Share Project’s expected deliverables and requirements. We used such information and documentation to determine how the responsibilities for administering and overseeing the Cost Share Project were split between KDOT and Great Bend, what steps KDOT was authorized to take in response to the project’s identified shortcomings, and what steps they actually took.

KDOT has helped fund many Cost Share Projects throughout the state of Kansas, but this audit is limited to the dragstrip project in Great Bend, approved in 2019. Further, the reconstruction of the dragstrip involved multiple other stakeholders including contracted construction and engineering companies and the Sunflower Rod and Custom Association. Our audit was limited to KDOT’s actions and did not include any evaluation of other stakeholders’ actions or inactions related to technical requirements associated with the construction of the project.      

More specific details about the scope of our work and the methods we used are included throughout the report as appropriate.

We did not make any specific recommendations for this audit. 

Important Disclosures

We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. Overall, we believe the evidence obtained provides a reasonable basis for our findings and conclusions based on those audit objectives.

The Kansas Department of Transportation officials have not clawed back funds related to the project because they want Great Bend to get the track back into racing condition.

Background

The Department of Transportation created the Cost Share Program in 2019 to help fund transportation projects in local communities.

  • The Kansas Department of Transportation (KDOT) created the Cost Share Program in 2019 when the Legislature authorized about $216 million of the state highway fund for various transportation projects. The Cost Share Program is now under the broader Eisenhower Legacy Transportation Program (IKE).
  • The Cost Share Program helps local communities address transportation needs by helping fund the construction of all types of transportation projects (roads, rail, bridge, pedestrian, etc.). Eligible applicants for the program are typically local units of government, but applications from non-governmental entities are also considered. Eligible projects are supposed to improve safety, access, condition, congestion or generally improve transportation. Additional consideration may be given to projects that support economic growth, aid in the retention or recruitment of business, or add value to a KDOT project.
  • According to Cost Share Program materials, eligible applicants must provide matching funds of at least 15% of project construction costs. Additional consideration is given if applicants commit to matching more. The Cost Share Program is for construction costs exclusively and payments are made on a reimbursement basis. Other project costs (e.g. preliminary engineering, utilities work) are not eligible for funding and do not count towards the match.
  • According to program materials, KDOT will not reimburse any construction costs until there is a signed agreement between KDOT and the awardee. The agreements generally require the awardee to submit the final bid tabulations (bid summaries), as well as the final design plans which must be signed off on by a licensed engineer before KDOT will make reimbursement payments.
  • For this audit, our work was limited to Great Bend’s Cost Share dragstrip project. It does not extend to any other Cost Share Projects that KDOT has provided funding for.

In Fall 2019, KDOT awarded $1.19 million in Cost Share Project funds to the City of Great Bend to reconstruct the historic dragstrip and shutdown area.

  • In November 2019, KDOT approved the City of Great Bend’s application for a Cost Share Project to reconstruct a high-speed dragstrip (this includes both the track and shutdown area – the portion of the racetrack after the finish line where cars slow down). The proposed project goal was to preserve the historic Sunflower Custom and Rod Association (SRCA) dragstrip, which had significantly deteriorated. As the first dragstrip in the nation to hold a drag-racing championship event, it is on the list of Kansas historical sites.
  • The dragstrip project proposal involved a full-depth pavement replacement of about 3,760 feet of asphalt. Generally, this required the removal and replacement of the sub-base underneath an 8-inch-thick concrete reinforced raceway surface. The project’s proposed completion was May 2020, but this was extended to May 2021 due to COVID and other related factors. Great Bend officials told us that they expected the reconstructed dragstrip to last 40 years or longer before needing significant maintenance.
  • According to the signed contract, the total reconstruction cost of the dragstrip was expected to be about $1.59 million, with KDOT being responsible for about $1.19 million (or 75%). The City of Great Bend was responsible for the remaining 25%. The city was also responsible for all preliminary project costs (engineering, utility, etc.), as well as construction costs that exceeded the contract.
  • In total, the dragstrip project cost about $1.64 million. KDOT contributed $1.19 million in Cost Share Program funds as agreed upon in the contract between KDOT and the City of Great Bend. Great Bend contributed more than 25% of the dragstrip project’s construction costs because actual costs exceeded the contracted amount. Specifically, the City of Great Bend incurred about $54,000 of additional costs primarily due to several change orders.

The dragstrip project was completed in May 2021, but within a couple months, stakeholders raised concerns with the quality of the track.

  • The dragstrip reconstruction was completed in late May 2021. The Sunflower Rod and Custom Association (SRCA), the operator of the dragstrip, hosted its first event with the reconstructed dragstrip in mid-June 2021. But by July 2021, SRCA notified Great Bend’s city administrators of issues with the quality of the dragstrip that prevents it from being used for racing. SRCA reported “high spots” that existed in the concrete surface which was a safety issue. According to correspondence we reviewed, this issue caused the drivers to shake and the wheels to physically leave the track surface.
  • To resolve the issue, Great Bend and SRCA worked with the construction company contracted for the dragstrip’s reconstruction and another company not previously involved with the project. Together the companies performed grinding and polishing operations on the track surface multiple times to try to flatten the high spots. The final grinding operation was performed in February 2022.
  • However, during the grinding, other defects with the track’s surface such as chipping and flaking became apparent. This was a concern because the rubberized coating material that the tires “grab onto” could not be applied. Without the coating, further cracking and deterioration would occur. KDOT officials told us they were notified of drivers dropping out of SRCA races due to safety concerns and SRCA could no longer host races for cars of a certain speed.
  • In September 2022, SRCA’s legal counsel reported concerns to KDOT that the City of Great Bend had failed to properly maintain the dragstrip. Great Bend hired legal counsel and an expert engineer to assess the condition of the dragstrip. That expert determined that the dragstrip’s significant concrete quality issues stemmed from the initial project construction, rather than improper maintenance.

As a result of the dragstrip’s quality issues, the track was closed for the 2023 racing season and the track has not been reopened since.

  • As a result of the track’s significant defects, the City of Great Bend and SRCA determined the track was not in an acceptable condition for safe racing operations. SRCA hosted the last racing event in October 2022 and decided to cancel racing operations for 2023, on April 21st, 2023. As of January 2025, the track has not been fully repaired and hasn’t reopened since its closure. 
  • In June 2023, Great Bend entered arbitration with the construction company that completed the reconstruction. Later that summer, the city also filed a lawsuit against the engineering firm involved in the dragstrip project’s design planning and implementation. As part of these legal actions, additional consultants and inspectors examined the track’s condition. From that assessment and expert counsel, Great Bend and SRCA officials determined that the only possible solution to the quality issues was the removal and replacement of the entire dragstrip.
  • As of January 2025, Great Bend reached settlements with the construction company and the engineering firm. According to Great Bend officials, the city expects to collect about $3.6 million in total. The City of Great Bend plans to move forward with the rebuilding of the track. Officials told us they entered into an agreement with an engineering company for new design plans. They hope to have the project complete by Spring of 2026.
  • Appendix A shows a comprehensive timeline of the events described in the sections above.

KDOT’s Response to Project Shortcomings

Under the Cost Share Program contract, the city had the responsibility of overseeing the dragstrip project.

  • This audit stemmed from concerns that KDOT was not taking the appropriate steps to address the dragstrip project’s shortcomings. As such, we reviewed the contract requirements for KDOT and the City of Great Bend to determine who was responsible for what, and what KDOT was authorized to do if those responsibilities or requirements were not met. We also talked with KDOT and Great Bend officials to understand what deliverables were expected of the dragstrip reconstruction project.
  • The contract between KDOT and the City of Great Bend required that Great Bend be responsible for all duties related to administering and maintaining the dragstrip project. Some of the city’s duties included, but were not limited to:
  • making or contracting out design plans that are adequate and accurate for the dragstrip’s reconstruction
  • providing appropriately qualified personnel including construction engineering and necessary inspections for the project
  • maintaining the project at its own cost after the project’s completion
  • The contract allowed the City of Great Bend to submit periodic reimbursement requests to KDOT as construction costs were incurred. Such reimbursement requests were required to include a “sign-off” from the licensed engineer contracted by the city, to indicate the project was within substantial compliance to the design plans and specifications.
  • KDOT’s primary responsibility was to administer the grant funds to the City of Great Bend. According to the contract, KDOT was responsible for ensuring the reimbursement requests from Great Bend included the signature from the city’s engineer. Our review showed that all 8 reimbursement requests from Great Bend were signed by the contracted construction company and the engineer in accordance with the contract. As such, KDOT made all 8 payments to the city based on those requests.
  • According to the contract, KDOT was not responsible for ensuring or verifying that design plans for the dragstrip project were adequate or accurate. The contract also stipulates that KDOT is not responsible for day-to-day inspections of the project, nor were they responsible for catching errors in or deviations from the design plans.

Under the contract terms, KDOT was authorized to recapture up to 90% of the Cost Share Project funds.

  • The contract also authorized KDOT to recapture (“claw-back”) the Cost Share Project funds if the city didn’t use the project as intended in the contract, for at least 10 years after the project’s completion. If at any point within this timeframe, the city wanted to change the use of the project, KDOT had to approve it.
  • The contract stipulated that if the “use as intended” requirement was not met, KDOT could recapture the Cost Share funds based on a sliding scale formula, depending on when the contract was violated. For example, KDOT could recapture allCost Share funds if the requirement was violated within the first year of the project’s completion but could only recapture 10% of Cost Share funds if the requirement was violated in the tenth year from project completion.
  • Based on the contract terms, it appears KDOT was authorized to recapture 90% of the Cost Share funds. The project was completed with KDOT’s final acceptance on June 18th, 2021. At that time, KDOT had paid all of its promised funding, and the project was deemed complete. SRCA then closed the dragstrip for the 2023 racing season on April 21st, 2023, violating the intended use requirement within the 2nd year of the project’s completion date. This would have allowed KDOT to claw back 90% of the grant funds. KDOT officials agreed that the cancelled racing season would trigger this clause.

KDOT told us they did not enforce the claw-back penalty because they wanted the city to get the dragstrip back into racing condition.

  • KDOT officials told us they didn’t enforce this penalty because they were satisfied with the efforts from the city to get the track back in racing condition, which was the initial goal of the contract. KDOT officials said shortly after the 2023 racing season was cancelled, the city filed lawsuits against the involved contractors and engineers in June and September 2023.
  • According to KDOT officials, if KDOT clawed back the Cost Share funds (about $1.1 million), the city wouldn’t be able to fund the dragstrip’s reconstruction and would likely not be able to host races in the future. That’s because even though the city expects to receive about $3.6 million in settlements from the lawsuits, the city’s expert counsel determined that the cost of construction and engineering for the original dragstrip reconstruction project was severely underbid. To be built to the standard needed for SRCA races, the dragstrip’s reconstruction is expected to cost about $5.3 million.
  • KDOT officials told us that moving forward, they would consider enforcing the claw-back penalty if the City of Great Bend did not get the dragstrip reconstructed in a reasonable time and to the standard needed for SRCA races. However, officials didn’t set a specific timeframe for this possibility.

Recommendations

We did not make any recommendations for this audit.

Agency Response

On February 25, 2025 we provided the draft audit report to KDOT. Because we did not make any recommendations, a written response from KDOT was optional. KDOT chose not to submit a response.  

We also provided the draft audit report to Great Bend officials on March 6, 2025. We made a couple of minor changes to the report based on their response.

Appendix A – Dragstrip Cost Share Timeline

This appendix includes a timeline showing major events related to the dragstrip Cost Share Project.