Press Release  IG Shapiro Calls Steamship Authority's Website Project A “Cascade of Failures”

Boston, MA — An Office of the Inspector General (OIG) investigation into a website development project by the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (SSA) found that the project was ill-conceived, poorly executed, and a waste of public funds. The investigation also found that the project’s breakdown was rooted in the failure of the SSA general manager and the SSA Board of Governors (Board) to fully and properly exercise their respective duties and responsibilities.

In a report released today, the OIG details its investigation that was launched in response to public concerns and media reports of multiple crashes of SSA’s website during peak ferry reservation periods. The OIG found that in attempting to address the problem, the SSA and its Board made a critical misstep in prioritizing a website redevelopment project instead of a badly needed overhaul of the underlying ferry reservations system. The OIG determined that the website project, begun in 2022, wasted at least $2 million – and possibly as much as $4 million or higher – before it was ultimately shelved.

The OIG’s report calls on the SSA and its Board to conduct a sweeping review of their project planning, execution, and oversight practices while setting a “tone from the top” that values employee input and respects public funds. 

“The Steamship Authority has nothing to show after pouring millions of dollars into an effort that was doomed from the start,” Inspector General Jeffrey S. Shapiro said.  “Indeed, the Steamship Authority’s failure to appreciate the difference between the public-facing website and the back-end reservation system anchors the cascade of failures that ensued.”

The investigation found that the SSA’s general manager (1) did not follow the advice of a 128-page consultant report from 2018 that characterized the SSA’s antiquated reservation system as a substantial risk; (2) did not assign a project manager with the needed skills and experience to manage the website redesign; and (3) did not keep the Board informed on key decisions as the project fell behind schedule and consistently incurred additional costs.

“The Board, which is charged with the Authority’s overall management, exercised virtually no meaningful oversight of the Authority’s spending throughout the project. SSA Board members did not ask enough questions as they heard overly optimistic, unrealistic, or incomplete information. They either did not understand or did not execute their oversight function, resulting in many instances in which they failed to exercise their fiduciary responsibilities,” the report said.

“The OIG is nonetheless optimistic that a new day is dawning for the SSA and those who depend on its services. With the arrival of a new general manager in January 2026, the SSA will have the opportunity to examine its operating procedures, consider new approaches to project management, adopt best practices, and set a true tone from the top,” the report said.

However, the OIG is concerned that the “senior advisor” position that the current general manager is slated to take on for the next 18 months could prove to be an obstacle for the incoming general manager. Aside from the question of why the Board approved the employment agreement, the role’s designated responsibilities cover three areas in which the current general manager has not demonstrated strength: strategic planning, project management, and implementing large projects. Further, retaining the current general manager as an “advisor” has the potential to impede the new general manager from setting his course for the SSA. Another problematic element is that the senior advisor can resign and collect significant compensation if the incoming general manager exercises his prerogative to limit or change the senior advisor’s responsibilities.

The report recommends that the Legislature evaluate the SSA’s 65-year-old enabling statute and consider ways to improve oversight of a significant public resource.

“I hope this report and its recommendations will serve as a field guide for the SSA to make needed changes in the immediate term as the incoming general manager works to set the agency’s strategic vision, culture, and agenda with a view toward a ‘best in class’ operation,” IG Shapiro said. “The point that the OIG raised in a 1985 report – that a ‘failure to properly manage major decisions can seriously impair the SSA’s future ability to provide service to the public’ – is as true today as it was 40 years ago.” 

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