Press Release  IG Shapiro Urges MBTA to Prioritize Fare Collection

Boston, MA — In a public letter issued today, Inspector General Jeffrey S. Shapiro called on MBTA General Manager and CEO Philip Eng to ensure that fare collection is a priority now and in the upcoming contract for the commuter rail.

“As the MBTA approaches the end of the current commuter rail operator contract and embarks upon the procurement for a new operator contract, I stress the importance of the MBTA making fare collection a real and achievable priority,” IG Shapiro said.

IG Shapiro also expressed concern that the existing contract imposes higher penalties for poor performance on vehicle or station cleanliness than it does for failure to collect fares. “This gives the impression that fare collection is not seen as integral to revenue,” IG Shapiro said.

Citing the OIG’s previous reviews of MBTA privatized contracts, IG Shapiro stressed that the MBTA needs to be more aggressive in holding Keolis and the next operator accountable to the terms and conditions of the contract. “We have repeatedly seen the MBTA fail to get the most from other contracts when it does not engage in cohesive, comprehensive and strategic contract management processes.”  For example, the 2017 Revenue Growth Service Change Agreement laid out MBTA expectations for the current contractor, Keolis, to install fare gates.  “We are now in 2025 and the only commuter rail station with fare gates is North Station.”

IG Shapiro urged the MBTA to use contract terms that underscore the importance of fare collection as a fundamental obligation of the operator, not a passenger amenity, and use easy to measure and clearly defined performance standards for fare collection with meaningful penalties for non-performance in the new commuter rail operator contract. Additionally, he urged the MBTA to take timely and meaningful steps on infrastructure to install automatic fare gates.

“While the lost revenue from uncollected fares would not close the MBTA’s projected budget gap, the impact of uncollected fares is significant. How the MBTA leadership and staff treat one public dollar is as meaningful as how they treat a million public dollars. Each dollar must count,” IG Shapiro said.

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