MTA bidder got inside information on subway contract, report says

Inappropriate communications between a senior Metropolitan Transportation Authority official and a prospective employee led to a bidder getting the inside track on an $18 million subway signal upgrade contract, according to an MTA watchdog's report.

The report by the office of MTA Inspector General Daniel Cort found that, while the communication created "an appearance of an improper advantage," there was no evidence the conversations affected the ultimate contract award.

The inspector general's report did not identify any of the parties involved. The office rejected a public information request from Newsday for their identities, saying disclosure "would result in an unwarranted invasion of personal privacy."

According to the report, in 2022 an unnamed deputy chief in the MTA's Construction and Development division, while recruiting a new senior vice president for the transit authority, had "extensive communications" about subway signal upgrade plans over a year with an executive from a subway signal technology supplier. That unnamed job candidate was eventually hired to fill the role of senior vice president of signals and train control for MTA Construction and Development.

Before starting in his new job, the incoming senior vice president met with a firm that ultimately won the $18 million consultant services contract, and "shared insights" into what the MTA was looking for in a winning bid. Later, the new MTA senior vice president's former employer won a related subway signal installation contract as part of a joint venture. Cort's office wrote that the initial talks between the MTA deputy chief and the future senior vice president "created the appearance" of favoritism for future winning bidders.

"MTA executives and contractors must adhere to the highest standards of fairness and transparency," Cort said in a statement. "Even the appearance that private sector interests or incoming employees have access to nonpublic information can damage confidence in the MTA's procurement process. Our recommendations are aimed at strengthening controls to prevent these issues from happening again."

In a statement, MTA spokesperson Laura Cala-Rauch noted that the inspector general's report found "no collusion or advantage given to any person or company."

"We appreciate the Inspector General’s call for improved oversight and have already begun implementing their recommendations," Cala-Rauch said.

Cort's office made several recommendations, all accepted by the MTA, to avoid a recurrence of the situation, including the use of nondisclosure agreements for potential job candidates.