The Management of Crane Services at MTA New York City Transit

MTA/OIG #2014-13

In 2010, NYC Transit entered into five-year contract, valued at $48.8 million, to provide for the lease, operation, and maintenance of 15 cranes. The cranes are needed to move various types of materials in transit yards and on Track Division construction sites. The Office of the MTA Inspector General conducted a review to evaluate how well NYC Transit has managed the contract.

While the contractor appears to have performed reasonably well thus far, our review has revealed both lapses in contract management by Transit as well as opportunities for Transit to ensure that the upcoming contract is more economical and attuned to agency needs.

Indeed, NYC Transit’s contract began its fifth and final year on September 1, 2014 and the agency will soon solicit bids for a new crane services contract. As discussed in the report, OIG finds that NYC Transit must do a better job of identifying and monitoring its equipment needs (e.g. the number and type of cranes that it requires to conduct its work most efficiently and which equipment to lease on a flat-rate versus an as-needed basis), specifying these requirements in its new contract for crane services, and periodically reassessing those needs and requirements throughout the life of the contract.