Massachusetts Bay Transportation Authority (MBTA) Station Modernization Activities
June 16, 2014 · Massachusetts Bay Transportation Authority · Read the full official report (PDF) ↗ · official site ↗
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“The additional work drove the base cost of the contracts from $98.4 million to over $146 million (an increase of more than 48%).”
Read the plain-English breakdown
This is a state performance audit of the MBTA, focused on how it handled station modernization work from 2005 through 2012.
“I am pleased to provide this performance audit of the Massachusetts Bay Transportation Authority (MBTA).”
The Auditor wanted to see whether the MBTA managed its station modernization program effectively and efficiently.
“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of the Massachusetts Bay Transportation Authority (MBTA) for the period January 1, 2005 through December 31, 2012 to determine whether the MBTA was effectively and efficiently administering its Station Modernization Program.”
Poor recordkeeping and billing meant the MBTA risked not getting back money it was owed for work it did for other public entities.
“Because of this inadequate accounts-receivable recordkeeping, the MBTA is at risk of not recouping these unreimbursed construction costs.”
If you use or pay for public transit in Massachusetts, this matters because the MBTA serves millions of people and uses public money for major infrastructure work.
“The MBTA serves 175 communities, providing transportation to almost 4.7 million people over 3,200 square miles.”
The report recommends better design oversight, better coordination inside the MBTA, stronger billing follow-up, and efforts to recover money where possible.
“Based on its response, the MBTA appears to have taken measures to address the deficiencies that existed in its design and construction processes and caused the issues we raise in this report.”
This is significant because the MBTA is one of the country’s biggest transit systems, so mistakes in major projects can affect many riders and large amounts of public money.
“The MBTA is the fifth-largest mass-transit system in the United States as measured by ridership and serves approximately 1.3 million passengers each day.”
“Station modernization” means major station upgrades, such as accessibility work, elevators, escalators, platforms, roofs, lighting, signage, and other improvements.
“Stations comprise the basic structure, roofs, platforms, lights, shelters, elevators, escalators, fare-collection equipment, and collector booths.”
6 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Assess the adequacy of the system of internal controls established by the MBTA over planning, contract award, and construction activities related to the expenditure of station modernization funds.
- Partially Review and evaluate the Request for Proposal and contract bid process for selecting designers and contractors, including an evaluation of initial cost estimates and accepted bids to determine their reasonableness.
- Did not comply Review the design and construction cost overruns incurred, including the cause and appropriateness of these expenditures.
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