State Comptroller Thomas P. DiNapoli is calling on the agency to streamline processes and track progress.
An audit by state Comptroller Thomas P. DiNapoli has found that the Metropolitan Transportation Authority (MTA) has failed to achieve promised savings from consolidating its procurement processes.
The MTA, which spends over $7 billion annually on procurement ranging from construction contracts to office supplies, was mandated under the Public Authorities Act to create a transformation plan by June 2019 that would improve procurement processes across its five operating agencies rationalized.
DiNapoli said the MTA could save more money by consolidating procurements than by purchasing goods independently.
“The MTA continues to face pressure to implement its capital programs and savings initiatives, which would benefit from furthering its stated goals of transforming its procurement process,” DiNapoli said in a news release. “Further savings could be possible if the company coordinated purchasing between its agencies more closely, rather than letting them source their supplies independently. Consolidation, efficiency and savings in this area were promised years ago but have yet to be fully implemented.”
The audit found that purchasing practices had not changed significantly as of September 2023, two years after the consolidation took effect. The audit found that MTA's four procurement units: procurement operations, materials management and distribution, supply chain strategy and rail vehicle strategy remain largely decentralized and layoffs continue to occur.
DiNapoli's report recommended that the MTA define specific initiatives related to its transformation plan to ensure it can track progress. The agency was also asked to identify cost savings and develop standardized procurement procedures across departments to increase efficiency.
The MTA disputed this and said it was not required to disclose what savings resulted from the transformation plan.