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Audit of the Massachusetts Bay Transportation Authority - Block by Block Contract(July 7, 2024)

July 7, 2024 · Massachusetts Bay Transportation Authority · Read the full official report on mass.gov ↗ · official site ↗

Published July 7, 2024 Audit covers January 1, 2021 – December 31, 2022 Under Diana DiZoglio · 2023–present

In plain English
The audit found the MBTA did not properly make sure Block by Block workers were trained before being posted in stations, and did not make sure station safety checks happened often enough.
source
“The MBTA also did not ensure that BBB completed its visual inspections at the agreed-upon frequency.”
Read the plain-English breakdown
What is this?

This is a State Auditor performance audit of the MBTA’s contract with Block by Block, the company that supplies station customer-service workers.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, January 1, 2021 through December 31, 2022.”
Why was it audited?

The auditor says the MBTA needs close oversight because it is large, complex, and provides services where safety matters.

“Based on our research, the MBTA is a “high-risk” agency that warrants consistent oversight due to the size of its budget, the complexity of its operations, and the risks related to the services it provides.”
Why it matters

If station workers are not trained on safety and operations before they start, riders, the public, and the workers themselves may face higher risk.

“A lack of training or untimely completion of training increases risk to the safety and operations of MBTA subway station locations.”
What's in it for me?

For riders, these workers are supposed to help with directions, fares, accessibility, safety hazards, maintenance problems, disruptions, and emergencies.

“BBB is contracted to provide directions to riders, assist riders with fare purchases and accessibility needs, and identify and report station safety hazards and maintenance needs in real time to the MBTA.”
What happens next

The auditor says more MBTA audit reports are coming, and this report recommends stronger policies, records, monitoring, contract metrics, and accountability.

“In the months to come, we will share with you additional reports from this audit, which will detail areas and topics we think deserve immediate attention.”
Why it's significant

This matters because the audit says weak oversight can reduce the MBTA’s ability to catch safety problems before they affect riders and employees.

“If the MBTA does not ensure that the controls (such as visual inspections by BBB employees) it designed to prevent safety incidents from occurring are in place and working as intended, then its ability to protect its riders and employees will continue to be impaired.”
Jargon, unpacked

“Station checks” means workers visually inspecting subway stations for problems like hazards, broken equipment, cleaning needs, or maintenance issues.

“The MBTA refers to the above visual inspections of subway stations as station checks.”

1 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

The MBTA did not ensure Block by Block employees completed required operations and safety training before subway station assignment.
public safetyrecordkeeping/documentationinternal controlsvendor oversight

Why it matters: A lack of training could increase risks to riders, the public, operations, and contracted employees sent into the field without proper preparation.

Standard: MBTA Request for Proposal No. 41-17 and MBTA Request for Proposal No. 3-22 required trained and qualified employees and initial training before deployment. ( Request for Proposal No. 41-17 for In-Station Customer Service )

4 recommendations
  • The MBTA should develop, document, and implement sufficient policies and procedures, including a monitoring component, to ensure that BBB employees are trained on MBTA operations and safety before being assigned to a subway station location to promote safe and effective operations for its riders and employees.
  • The MBTA should ensure that it retains records of training assignment and completion for all employees assigned to MBTA subway station locations.
  • The MBTA should ensure that it maintains accurate personnel and operational records for employees.
  • The MBTA should consider collaborating with BBB to reevaluate the training curriculum for newly hired BBB employees to ensure that it is sufficient.
Agency response & Auditor reply
Agency: "The MBTA disputes this finding."
Auditor: "The MBTA asserts in its reply that it provided training documentation for all 60 employees in our sample; however, that evidence was not sufficient, despite the Office of the State Auditor (OSA) providing multiple opportunities for the MBTA to support that it provided this training."
The MBTA did not ensure Block by Block completed station checks at least twice per hour.
public safetyinternal controlsvendor oversightprocurement/contracts

Why it matters: Safety hazards and maintenance needs might not be identified in a timely manner, affecting riders, employees, and subway stations.

Standard: MBTA and BBB officials stated that station checks were expected at least twice per hour. ( Verbally communicated station-check frequency expectation )

3 recommendations
  • The MBTA should develop, document, and implement monitoring controls to ensure that visual inspections are completed at the agreed-upon frequency of at least twice per hour.
  • The MBTA should establish service-level agreements and performance metrics in its contract with BBB to evaluate BBB’s performance in this area.
  • The MBTA should ensure that BBB meets all of its contractual obligations for the entirety of its contract.
Agency response & Auditor reply
Agency: "The MBTA encourages and requests that TAs conduct 2–4 station checks per hour."
Auditor: "Regarding the analysis performed to test whether visual inspections were completed at the agreed-upon frequency of at least twice per hour, we disagree with the MBTA’s statement that the methodology used by OSA negatively skews the data."
The MBTA did not implement controls to track and monitor Block by Block’s use of fare access cards.
cash handlinginternal controlsrecordkeeping/documentationvendor oversight

Why it matters: Inappropriate use of fare access cards could result in potential lost revenue for the MBTA.

Standard: MBTA policy memorandum required BBB employees to report courtesy taps and reasons through BBB’s SMART system. ( MBTA policy memorandum dated December 23, 2022 )

3 recommendations
  • The MBTA should develop, document, and implement policies and procedures that ensure the proper use of fare access cards by its contracted service providers.
  • The MBTA should use the automated fare collection system transaction data and available BBB SMART system reports to consistently review the use of these cards.
  • The MBTA should hold BBB accountable for inappropriate use of these cards.
Agency response & Auditor reply
Agency: "Both the MBTA and BBB have accepted responsibility for not closely tracking the taps made and reviewed in the [Office of the State Auditor’s (OSA’s)] Report."
Auditor: "During our audit, however, we were told by MBTA’s deputy director of fraud detection and analytics that their team does not perform any fraud monitoring of courtesy taps, because these passes are not registered to individuals."
The MBTA’s vendor performance monitoring for the Block by Block contract was insufficient.
procurement/contractsinternal controlsvendor oversightpublic safety

Why it matters: The MBTA’s ability to evaluate service quality was limited, increasing the risk of unsatisfactory performance and wasted taxpayer and rider money.

Standard: The MBTA’s Request for Proposals No. 41-17 stated that service-level agreements would be used to measure vendor service quality.

2 recommendations
  • The MBTA should strengthen its contract monitoring processes by ensuring that service-level agreements, measurable performance metrics, penalties, and incentives are included in all of its vendor contracts.
  • The MBTA should ensure that it develops comprehensive written contracts with vendors that clearly describe the entirety of the parties’ agreement.
Agency response & Auditor reply
Agency: "The MBTA disagrees with the Auditor’s statement that the MBTA did not have sufficient performance measures in place to promote accountability and ensure that BBB achieved the MBTA’s desired outcomes related to safety."
Auditor: "We strongly disagree with the MBTA’s above claim that they “consistently monitored the performance of BBB for the entirety of this contract.”"

Verified dollar findings

Projected / estimated $28,000,000 not in headline

Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.

$28 million - estimated additional spending
Context (excluded) $48,000,000 not in headline

Contract sizes, limits, thresholds, and fund balances - scale figures, never counted as money found.

$48 million - contract total

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