Auditor's report: MBTA wasted $15.4 million on Charlie Card system
By Globe Staff
The MBTA wasted $15.4 million because of inadequate planning and oversight of the design of the CharlieCard automated fare collection system, State Auditor Joe DeNucci's office said today.
The system was originally supposed to cost $75 million. The authority paid another $19 million for change orders authorizing work that wasn't originally specified in the contract, said auditor's spokesman Glenn Briere.
DeNucci's office questioned $15.4 million of the change orders, which were authorized between 2003 and 2008. It also said the change orders had delayed the implementation of the system by a year, losing the MBTA the opportunity to save another $2.9 million in revenue by eliminating fare evasions.
"This is another example of a multimillion-dollar project costing more than it should because there wasn't enough oversight," DeNucci said in a statement. "The taxpayers and the MBTA's riders are paying for that extra cost. In the future, the T management should provide more oversight of the design process and make sure that its contractors live up to their obligations."
MBTA General Manager Daniel Grabauskas said he had taken over the authority in May 2005 and installed new leadership on the project in August 2005. "While there may be disagreements over particular matters, the general finding that there should have been improved communication, coordination and oversight during the development of the design specifications is consistent with my observations," he said in a statement.
MBTA spokesman Joe Pesaturo also emphasized that the CharlieCard system had been a success. He said it captured $13.5 million in its first year of operation that would have "leaked" from the old fare collection system.



It would have been cheaper to keep the collectors.
Typical incompetence at the T. Let me guess-the idiots who were responsible got a raise and bonus! You think this is pathetic? look at thge state program to computerize the (medieval) court system-$80 million squandered, and NOTHING to show for it! Of course, to be fair, the people designing the system were not IT professionals-most probably only had a highscholl diploma. Oh well, who cares anyway? The MASS taxpayesr are a source on unending revenue-so come on-spenfd the money!
Whover wrote this does not know anything about construction. You would have to read the contract and understand the entire agreement between the MBTA and the Contruction company before making the conclustions that you did. They may have given a price based on an estimate, that was based on incomplete construction plans. These two things are common with every construction project, and there is no such thing as no change orders on a construction project, and there is no such thing as things going as planned, and rarely do you finish on time, especially if there are change orders. The change orders may have been a result of the MBTA making additional requests, and not the fault of the construction company or architect. If they did not make the changes, they system would not work, and the entire cost of the project would be a loss. Every construction contract includes procedures for Change Orders, and in every contract, it is knows that there will be changes and who will pay for the changes. The MBTA does not have control over design, because they do not specialize in design, that is the architects job, and it is the construction companys job to do what the architect provides, and to make suggestions to the architect. There may have been hidden problems, (underground pipes, needed upgrades, safety issues, etc. which caused the need for Change Orders).
One other good example here, I could say that the Boston Globe should have better oversight of what there staff writes because the staff does not know what they are writing, and so after my last comment, you would need to submit a change order to correct your assumptions, which would waste your time and your bosses time which costs the Boston Globe extra money paying you to correct your own mistakes.
Why does Daniel Grabauskas still have a job?
Is this any surprise?! I wonder what other MBTA projects waste money because of inadequate planning and oversight. Yet the T still has the nerve to talk about fare increases, and increase MBTA commuter parking lot fees by double. Which raises another issue. Granted the winter has been brutal, but the commuter rail parking lot near where I live is pretty beat up - not just by the weather, but by inexperienced or poorly trained plow drivers. The curbs are all pushed out of place, one of the light fixtures was knocked out of place and was since taken down, so now there's no lights on one part of the lot. Does the T expect us to pay for carelessness?
Does this really surprise anyone after the Cognos fiasco??? At least the MBTA got the system they wanted.
Not enough oversight at the T? Imagine that!! Between mismanagement, exorbitant salaries, no-show jobs and incompetence, these guys have been ripping us off for so long they might as well work for Wall Street!
It seems too bad that the Auditor is finding these costs over runs now. Who watches over these projects while they are wasting the money? The money is all gone now. You would think that the state would use standard project management guidelines and do a little more planning before they opened the tax payers check book.
>> In the future, the T management should provide more oversight of the design process and make sure that its contractors live up to their obligations." <<
What incentive do they have to do so? They just pass the costs on to everyone else and don't have to worry about it. In some places, people are fired for these kinds of shenanigans. In Massachusetts, they're given raises and bonuses.
How about handing out 7 million free rides to make up for your mistake, T?
Wow....the MBTA mis-managing something? Unheard of (insert heavy sarcasm here).
It's a 20% blunder. The system is miserable when getting on above ground. We're waiting and waiting for each person to show their card or pay. It takes forever and makes you want to expand that carbon footprint. There should be a prepay situation before entering a T waiting area: Like underground. Otherwise it's inefficient and archaic. The MBTA is poorly run...and they kill people with their escalators.
SHOCKED! I thought the MBTA was perfect!
Another case of letting incompetent state workers use our money like it's Monopoly money while they try to figure out how to get something right.
This is why here in MA more taxes are the only solution. If only they used some brain cells
Think of the millions MORE it would collect Joe if fare evaders were stopped on street level cars! I mean, you might only be 3 Billion in debt then!. Fix the way fares are collected on the Greenline and watch how much MORE money you have in your pocket!
Well maybe if they didn't have employees stealing from them (the guy in Malden) and allowed people to just go through the turnstiles or let riders just get on the trains, they might be able to get some revenue.
Typical MA politics - new guy Grabauskas comes in, blames it on the old regime, no one takes a hit for total miss management and the taxpayers pick up the tab. What else is new.
I'd actually be surprised if it was the opposite - the new guy came in, fixed something, and saved the taxpayers money. That would be a shocker in this state.
I love that there are 78 comments on the lurid teacher story -- a story that affects only one teacher and one student -- and not a single comment about the filth and fraud associated with the MBTA's idea of "oversight," which affects every resident of Massachusetts. This is the same agency that routinely lied (and probably continues to do so) about its own service levels, then goes on to say that those levels will be cut if its budget isn't increased. It's also the same agency that can't get two escalators in the same station to work at the same time, or kills an old lady when it does.
The T "kills people with their escalators"? How? How are they any different than any other escalators around the world, except they get more use and maintenance? Escalator accidents are horrifying, and , with more information, people might not want to get on one, but I think they're accepted in public life.
I can certainly understand cost overruns in any type of project, being involved in construction and design (not affiliated with T contracts). The MBTA would not be experiencing escalated debt had the State Accounting Office not hid the Big Dig expenditures within several state run agencies. But entertaining as it is to watch critics bash the transit system, take it away and watch the same people moan as they can't find a source of transportation to work. It is what it is.. everything costs more.. milk.. gas.. and cost overages when it comes to building a final product. Stop moaning.. enjoy that we have a transit system where other states don't.. and take a look at the NY System or CTA costs before you hang the MBTA out to dry!
This blogger might want to review your comment before posting it.
INside Boston.com
LOCAL BLOGS
Universal Hub
The Chinatown Blog
CommonWealth Magazine
Red Mass Group
Blue Mass Group
Boston 1775
The Berkeley Beacon
The Daily Collegian
The Daily Free Press
The Harvard Crimson
The Heights
The Huntington News
The Suffolk Journal
The Tech
The Tufts Daily