Materials Management
DESKTOP GUIDE TO THE MBTA PROCUREMENT
- Introduction
- Organization
- Materials Management Directorate
- Purchasing Methods and Approvals
- Cycle for Inventory Materials
- Cycle for Non-Inventory Materials
- General Responsibilities
- Location
- Hints on How to Help Us, Help You
- Suggestions
Introduction
The primary goal of Materials Management is to assure that the User Departments requirements are met in a cost effective and timely manner. In meeting these goals, all procurements must be in accordance with the MBTA's purchasing policies and procedures, as well as meeting all State and Federal regulations.
This Desktop Guide has been prepared to give you a quick reference of the information needed to do business efficiently with us. We want to assist you in better utilizing the procurement process, so that you can obtain the products and services you need faster and easier.
Robert A. Johnson
Director of Materials Management
Organization
- Materials Management Organization
- Purchasing
Responsible for the procurement of goods and services, including rolling stock, funded by operating and/or capital(FTA or Bond) accounts. - Stores
Responsible for the receipt, storage, and distribution of over 40,000 line items of inventory at 17 locations. - Mail Room
Materials Management Directorate
- Director of Materials Management
Robert A. Johnson (617) 222-3290 - Deputy Director of Materials Management
Daniel G. Smith (617) 222-3348 - Manager of Purchasing
Charles R. Menard, Sr. (617) 222-5904 - Manager - Vehicles/Systems Procurement
John M. Shea (617) 222-5194 - Manager of Stores & Inventory Control
Ron Charon (617) 222-5117 - Materials Manager
Larry Hunt (617) 222-3490 - Assistant for Administration
Ellen Quintal (617) 222-3291 - HOT LINE EXTENSIONS (617) 222-5995 or 5998
Purchasing Methods and Approvals
The Department's basic goal is to obtain quality materials and services while obtaining maximum competition whenever possible. The method used to achieve this goal are telephone/fax bids, public advertising, sealed bids, competitive negotiations and two-phase procurement. These methods are governed by the following guidelines:
- Up to $2,500 - Most Reasonable Source
- $2,500 to $10,000 - Minimum of three phone bids
- $10,000 to $25,000 - Minimum of five Fax Bids
- Over $25,000 - Public Advertising and sealed bids
The Purchasing levels of approval are:
- Up to $100,000 - Director of Materials Management
- $100,000 to $500,000 - General Manager
- $500,000 and over - Board of Directors
- competitive negotiations and two-phase purchasing procedures are used for specific procurements, such as transit cars, buses and service type contracts.
- All activities related to the procurement of goods and services are performed in accordance with the authorities Purchasing policies and procedures and sound business practices. Bid openings are conducted daily at 2:00pm and are open to all prospective vendors.
- Bids are tabulated, forwarded to the DBE coordinator for review, and to the buyer who reviews the information supplied by the vendor. A transmittal may be prepared an sent to the User Department for review and recommendation if:
- Bids require technical review.
- This item has not been purchased before.
- It is a substitute item.
- Apparent low bidder has never done business with the Authority before.
- Estimated budget has been exceeded.
Cycle for Inventory Materials
Inventory parts are used for maintenance of revenue and nonrevenue vehicles and equipment, facility and station maintenance, and every day general operating support and are purchased by an automatic re-order notice system. This computerized method is based on a formula which takes into account past usage, lead times and safety stock.
Under this Method:
- A Requisition is generated when a quantity on hand reaches or goes below the minimum order point. The Buyer reviews past usage history, open replenishment orders, open usage orders, and future requirements to determine maximum quantity to order.
- Buyer solicits quotations in order to obtain the best price, delivery date, and quality product available.
- Buyer places purchase order using the proper purchasing quidelines
- Material is delivered to Everett or Charlestown Stores.
- If the item has been designated as a test item, Bus Operations, Subway Operations, and/or Transportation Support Services will inspect prior to acceptance/storage.
Cycle for Non-Inventory Materials
In addition to inventory items, goods and services required for everyday use by all Departments are ordered when the User Department inputs a requisition for the desired material or service. Typical procurements include: office equipment and supplies, tools and hardware, printing, diesel fuel, heating oil, gasoline, and service contacts.
Under this method:
- User Department initiates/inputs a requisition to Materials.
- The requisition is assigned to the appropriate buyer.
- Buyer processes the requisition in accordance with appropriate purchasing policies & procedures. Buyer places purchase order, contract.
- The material is shipped directly to User Department, or service is authorized.
- The User Department receives goods/services on line. Accounts Payable inputs, invoice on line. If receipt and invoice match, payment is automatically authorized.
General Responsibilities
Materials Management:
- Purchases/contracts goods and services
- Receives inventory and non-inventory materials and parts.
- Stores all inventory materials.
- Issues inventory material to using department.
- Disposes of obsolete and scrap material.
- Supervises Mailroom.
Location
MBTA Everett Central Stores
80 Broadway
Everett, MA 02149
617-222-5496
MBTA Materials Management
Room 2810
10 Park Plaza
Boston, MA 02116
Hints on How to Help Us, Help You
- If you have access to base stock storerooms, please sign for the parts. It insures replenishment.
- Contact Purchasing before contacting vendors.
- Prior to ordering, please ensure that the requested goods or services are not present within our inventory; the need for the item is being met in the most cost effective manner possible; funding had been budgeted for the purchase.
- List up-to-date reference to parts and/or supplies.
- Allow sufficient time to process request.
- If you have problems relating to the quality of goods, packaging, warranties, or overpricing, please contact the appropriate buyer.
- Advanced planning on special projects.
- Contact Inventory Planning & Purchasing Supervisor (x3490) with issues related to availability of serialized inventory items.
Suggestions
Any suggestions on how to improve our performance can be sent to:
Robert A. Johnson
Director of Materials Management
10 Park Plaza, Room 2810
Boston, MA 02116
