Metro News Release
For immediate release: October 27, 2015
Metro announces top-to-bottom analysis of its business and financial operations
Authority also seeks strategic executive advisor to help implement findings of the review
In its continuous efforts to improve the customer experience, Metro today announced plans to conduct a top-to-bottom review of its financial systems and management operations to promote a more efficient and effective transit system.
“This management study is the result of a robust competitive process and will provide the Board and General Manager with a blue print to make Metro a better-run Authority,” said Metro Board Chairman Mortimer Downey.” By identifying opportunities for efficiency and accountability, we will have a clear road map for the Board and the new General Manager that can move us forward toward a more reliable, and more customer-responsive transit system.”
Commissioned by the Metro Board, the study enables the Board and soon to be named General Manager to have at their disposal organizations with the expertise and resources to help Metro undertake major administrative changes. The review is expected to take six months; with an option to extend performance for a year.
The $2.87 million contract to perform the study was formally awarded to McKinsey & Company, Inc. Washington DC and Ernst & Young LLP. The contract was awarded following a competitive procurement process that included an examination of the technical capabilities of the competitors and their proposals, historical performance, and value for the money.
At the Board’s request, Metro is also issuing a solicitation for proposals for a Strategic Executive Advisor. The Advisor will be charged with developing strategies for the Board and the new General Manager to implement key findings from the efficiency study, collaborate with the Chief Financial Officer (CFO) to make Metro more financially sustainable, and work with the General Counsel to effect any restructuring.
“Both the study and Strategic Executive Advisor will also serve as resources to the Board for ongoing governance work in conjunction with a new General Manager/Chief Executive Officer,” said Downey.
The request requires the Strategic Executive Advisor to draft a comprehensive report within 90 days for the Board’s consideration. The notice contemplates a six-month engagement for the Strategic Executive Advisor under a retainer agreement, with an option to extend the performance period. Metro expects the competitive selection and award decision for the Strategic Executive Advisor to conclude by the end of the year.
News release issued at 12:55 pm, October 27, 2015.