[Rescue Muni] Rescue Muni: Urgent! Call your Supe: No Unbid Booz Contract

Andrew Sullivan (andrew@sulli.org)
Sun, 20 Dec 98 19:59:39 -0800

Dear Rescue Muni Member:

The Board of Supervisors is scheduled to vote TOMORROW (Monday) on a supplemental budget
request for $14.8 million, including approximately $2.8 million for a contract with
Booz-Allen & Hamilton to take over certain aspects of Muni Metro operations. Your Steering
Committee urges a NO vote because:

* the contract is not competitively bid
* the incentives in the contract are not strong enough
(Booz gets 10% more than base billable hours if certain standards are met, but there are
no PENALTIES for failing to meet standards)
* Booz-Allen has a rather mixed track record (as do Muni, Alcatel, & Breda)

We recommend that this contract be immediately put out to bid, following appropriate
competitive-bidding procedures. We don't necessarily oppose using Booz, or other
consultants, where appropriate - but we do think we need to get the best deal for our tax
and fare dollars.

As for the rest of the budget request, we look at it with a rather skeptical eye, given
the "no-excuses" budget passed in the summer. Have we received detailed and accurate reports
on on-time service? Are we rewarding bad service by making up for lost fare revenue (approx.
$3.9M + $1.9M in payout to BART) during the Metro Meltdown?

We recommend that the rest of the budget be tied to real, enforceable standards of service
(as we recommended in the summer) if it is to be passed. Since these are not in the current
resolution, we must urge that the Supes delay a vote until these are added.

Call your Supe tonight (leave a voice mail) or tomorrow early am for best results.
Supervisors can be reached at the phone numbers and email addresses below.

THANK YOU for your help!

Andrew Sullivan
Chair, Rescue Muni Steering Committee

Your Supervisors:

Tom Ammiano: 554-5144; SupAmmiano@aol.com (Rescue Muni member; 1999-2000 Board President)
Sue Bierman: 664-6661; Sue_Bierman@ci.sf.ca.us
Amos Brown: 554-7601; Amos_Brown@ci.sf.ca.us
Leslie Katz: 554-5335; Leslie_Katz@ci.sf.ca.us
Barbara Kaufman: 554-4880; Barbara_Kaufman@ci.sf.ca.us (1997-1998 Board President)
Mark Leno: 554-7734; Mark_Leno@ci.sf.ca.us (Rescue Muni member)
Jose Medina: 554-5405; Jose_Medina@ci.sf.ca.us
Gavin Newsom: 554-5942; Gavin_Newsom@ci.sf.ca.us (Rescue Muni member)
Mabel Teng: 554-4981; Mabel_Teng@ci.sf.ca.us (Finance Committee chair; devised "No Excuses Budget")
Michael Yaki: 554-7901; Michael_Yaki@ci.sf.ca.us (Transportation Committee chair)
Leland Yee: 554-7752; Leland_Yee@ci.sf.ca.us

Our Statement:

Rescue Muni Opposes Booz Allen Contract

Rescue Muni, the two-year old advocacy group for Muni riders, opposes the mayorıs plan to award Booz
Allen Hamilton a contract to run the troubled Muni Metro.

³Any contract of this scale should be cometitively bid,² said Andrew Sullivan, steering committee chair
and chief spokesperson for Rescue Muni. ³A single-source contract is completely inappropriate. The
Board of Supervisors should put this out to bid. Thatıs the only way to make sure taxpayers are getting
their moneyıs worth.²

³Weıve already spent millions on Booz Allen in consulting fees. What do we have to show for it?² asked
Daniel Murphy, vice chair of Rescue Muniıs steering committee. ³The city should look long and hard at
what it got for the money. What I see is a train control system that doesnıt work especially well, running
the worldıs most expensive streetcars. And very little accountability for a whole series of questionable
capital spending decisions.²

³Any contract like this should come with strict performance standards. The standards in this contract are
very weak. Booz Allen gets paid even if service doesnıt improve,² added Sullivan. ³If Muni really
thinks the solution to its problems is to be found in an outside consultant, those consultants should
compete to see who can offer the most service improvement for the dollar.²

Rescue Muni earlier announced opposition to the proposed single-source advertising contract to TDI, with
proceeds earmarked to pay for some of Booz Allenıs fees.