FMCB Approves Contract for MBTA Cash Processing Operations

The MBTA Fiscal and Management Control Board recently approved a two-year, $7.7 million contract to Brink’s Incorporated to perform cash collection operations that had previously been handled internally by the MBTA. The contract is projected to reduce MBTA spending  for cash processing by more than half, saving the MBTA at least $8 million a year and more than another $1 million that it would have had to invest to upgrade the T’s “money room” in Charlestown.

“Today’s vote was an important step in the FMCB’s mission to improve efficiency and accountability for our customers and taxpayers,” said FMCB Chairman Joseph Aiello.

As part of the transition of its cash operations to Brink’s, the MBTA is offering all employees who worked in the Charlestown money room the opportunity to return to previous positions within the Authority, including bus operations, as many former money room employees had previously operated buses.

The vote marked the first time in 16 months that the FMCB has utilized the three-year waiver granted to the MBTA by the Legislature releasing it from requirements that govern the privatization of services currently provided by public sector employees, (commonly known as the “Pacheco Law”).

“The MBTA’s focus should be on moving people, not money, and today’s action allows us to increase the attention to our core mission of improving service for our riders,” said MBTA General Manager Brian Shortsleeve. “We look forward to this transition and working with our employees who have been offered the ability to apply for other positions at the MBTA, including in bolstering our bus operations.”

Just this year, an independent review by a team of national cash processing experts identified a string of problems, ranging from serious security lapses that jeopardized employee safety to an inability to reconcile fare receipts with deposits.  Prior state audits have found the money room was unable to account for over $100 million in public dollars.

Under terms of the contract, Brink’s will be paid $3,618,845 for the first year and $3,648,793 for year two. At its discretion, the MBTA can exercise options for three additional one-year contracts.

Brink’s will now be responsible for using its own trucks and other equipment to perform functions that had been performed by the T, including:

• Collecting cash and coins from fare vending machines
• Servicing those and other cash machinery
• Processing and depositing funds