The Massachusetts Bay Transportation Authority’s (MBTA) Fiscal and Management Control Board (FMCB) has unanimously approved a contract with Management Consulting, Inc. (Mancon) to manage the MBTA's warehouse operations for a period of five years. The contract projects a savings and avoided costs of $64.2 million.
“The MBTA should and will continue to be in the business of moving our customers more efficiently, and modernized warehouse and logistics operations will both reduce costs and wait times for servicing our fleets," said Brian Shortsleeve, MBTA acting general manager. "This contract will allow us to increase the productivity of our maintenance operations and management of our inventory, improving response and repair times and the reliability of our vehicles for the riders who depend on the MBTA each day.”
The contract is estimated to allow a 34 percent increase in the MBTA’s inventory accuracy and improve mechanic productivity, service, and efficiency. Standard requests will see a 24/7, 10-hour delivery guarantee to maintenance facilities, which is projected to reduce the MBTA’s current response times by 58 hours, or 2.5 days.
The total warehousing and logistics operating budget for the Fiscal Year exceeds $12 million annually. The estimated annual cost based on a five-year contract with Mancon is $7.4 million.
Mancon will use its own facilities, labor, vehicles, software, management systems, and equipment in managing the MBTA’s warehousing operations.