News  The OIG’s Internal Special Audit Unit (ISAU) Review of the MBTA’s In-Station Customer Service Contract with Block by Block

On July 26, 2023, the Office of the Inspector General’s Internal Special Audit Unit (ISAU) issued a report detailing its review of the MBTA’s in-station customer service contract with Mydatt Services, Inc. (d/b/a Block by Block). The purpose of the contract was to expand the MBTA’s customer service capabilities by staffing stations in the MBTA’s transit system with Block by Block employees, or “transit ambassadors,” who could provide directions, respond to concerns, and maintain the safety of MBTA riders. The contract was also meant to save costs for the MBTA, provide real-time access to service-related data through Block by Block’s SMART system, and make stations more accessible to riders with disabilities.  

The ISAU’s review found that the contract, which ran from July 2017 to September 2022, succeeded in expanding the number of hours and stations covered by customer service professionals and cost the MBTA less than the same coverage with its own employees. However, the ISAU discovered numerous shortcomings in the MBTA’s management of the contract, such as a failure to institute performance metrics or penalties for nonperformance, which made it impossible to determine the quality of Block by Block’s services or whether the contract was successful in making stations more accessible. The ISAU also found that the MBTA paid nearly $5.37 million more than was expected over the course of the contract. This was due, in part, to the fact that the MBTA and Block by Block regularly failed to abide by the pay rates for transit ambassadors set forth in the contract, and the MBTA repeatedly failed to account for special service requests to cover events such as Red Sox games or concerts when determining its service requirements at the beginning of each contract extension.  

This is the third of the MBTA’s privatization contracts – along with its absence management contract with Workpartners and its police dispatch services contract with IXP Corporation – which the Office of the Inspector General has reviewed as directed by Chapter 46 of the Acts of 2015. All three reviews reflect similar themes of insufficient contract oversight by the MBTA through a lack of performance metrics, a failure to abide by all terms of the contract, and poor records retention. Throughout its review, the ISAU identified opportunities for the MBTA to strengthen its procurement, contract development and vendor oversight practices. These recommendations include – among others – developing a contract that clearly spells out the entirety of the agreement; obtaining and documenting the necessary approvals for contract amendments; and including measurable and realistic performance metrics and penalties for nonperformance.