News & Reviews News Wire MBTA faces scrutiny over contracts with commuter operator Keolis

MBTA faces scrutiny over contracts with commuter operator Keolis

By Trains Staff | March 6, 2025

Inspector general calls for better fare collection; auditor says agency has failed to properly assess penalties and incentives

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Massachusetts Bay Transportation Authority GP40MC No. 1135 leads a Boston-Haverhill, Mass., train at Lawrence, Mass., Aug. 12, 2023. Two state officials have raised concerns about MBTA’s administration of contracts with commuter operator Keolis. Scott A. Hartley

BOSTON — Massachusetts’ inspector general has called for the MBTA to improve fare collection on its commuter trains, saying it does not happen “dependably or consistently,” while the state’s auditor has issued a report critical of the transit agency’s administration of its contract with commuter operator Keolis.

The scrutiny comes as the MBTA approaches the end of its operating contract with Keolis in 2027 and considers whether to continue with a single contract or divide it into smaller elements.

The March 4 letter from Inspector General Jeffrey S. Shapiro contends that “the scale of the problem of uncollected fares and the resulting lost revenue has been greatly understated over the years” and that fare collection has not been emphasized by the MBTA. “The MBTA incorrectly focuses on fare evasion,” the letter states, “when it should instead enforce the contract requirements of active fare collection by its commuter rail operator.”

In a press release, Shapiro said he stresses “the importance of the MBTA making fare collection a real and achievable priority,” and notes the agency should be holding Keolis and the next operator accountable under their contracts. He cites the lack of fare gates, called for in a 2017 agreement, as an example. Currently, Boston’s North Station is the only location with fare gates, although Eng said today (March 6) that they are coming this year at two other hubs, South and Back Bay stations.

State House News Service reports Eng said the letter “does not capture all of our efforts” regarding fare collection and notes that fare revenue has increased over the past three years, as has scanning of mobile tickets. He also said widespread installation of fare gates would require the agency to prioritize those gates “over critical maintenance and infrastructure needs.”

The report from State Auditor Diana DiZoglio, also released on March 4, found that the MBTA did not accurately assess penalties and incentive payments to Keolis. The report says that the transit agency did not assess more than $3.3 million in performance-based penalties over the life of the contract that began in 2014 and has been extended twice. It also inappropriately assessed more than $257,000 in penalties, overpaid it by more than $105,000 for some incentives and underpaid it by more than $105,000 in others.

“The MBTA must increase coordination and communication among departments to address inefficiencies,” DiZoglio said in a press release. “Our report revealed significant issues that need to be remedied around the MBTA’s contract with Keolis. We will be revisiting the MBTA’s actions in regard to our recommendations in roughly six months as part of our post-audit review.”

The MBTA, in responses included in the audit report, said it disagrees with some of the calculations and interpretations of contract language by the auditors.

2 thoughts on “MBTA faces scrutiny over contracts with commuter operator Keolis

  1. Is it that these problems predate ENG’s tenure? Poor back office work may have been one factor in all the slow orders not getting fixed?

  2. I don’t think it is any secret around Mass. that you can usually ride the “T” for free. Even when you purchase a ticket, they don’t collect them so you could use them another day. Most trips the agents don’t even walk through all the cars.

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