Supplemental Work

The KCS–MBTA Commuter Rail Operating Agreement comprises two fundamental types of work to be provided by KCS: Fixed Fee core operations and Supplemental Work. The core operations funded by the Fixed Fee include all of the transportation, mechanical, infrastructure, customer service, safety, and supporting administrative elements necessary to operate the service and maintain the assets of the MBTA’s Commuter Rail network. 

Each year, there are important MBTA and MassDOT capital improvement projects and priorities for which KCS can either deliver in their entirety or provide important project support to our client so that these priority improvements or additions can be delivered in a safe and efficient manner.  These projects are funded separately from the Fixed Fee and are referred to by our Operating Agreement as Supplemental Work (previous contracts called this Force Account).  These Supplemental Work projects are an important part of the long-term health of the network and the commercial profile of our business.  It is critical that we continue to be a trusted partner of the MBTA for project development and delivery in this space.

The extension of our agreement with the MBTA, executed in 2020, recognized the important role KCS plays in supporting the MBTA’s capital delivery projects, as that agreement identified a target of at least $100 million in projects to be delivered by KCS each fiscal year. 

Our goal is to not just support this minimum level, but to enhance our project capabilities to deliver on increased MBTA expectations when and where needed. To meet this objective, we will continue to improve our delivery with more robust processes, enhanced professional capability, and advanced resource planning. We will also refine the governance of the Supplemental Work department to secure the quality completion of each project. 

Overall, these projects provide mutually beneficial opportunities for the MBTA and KCS in terms of infrastructure and asset performance, network growth, technological advances, and improvements to the overall commercial sustainability of the operations.

To achieve this level of growth and support, we will seek solutions to resolve resource constraints and expand our partnership with engineering and construction companies to drive synergies and remain the MBTA’s provider of choice for rapid project deployment. These solutions include working with our union partners to build more resilient and reliable resource capability that provides ample opportunity for our workforce to support these critical projects while ensuring we have the flexibility to leverage other resources when necessary and appropriate.

These steps will allow both the MBTA and KCS to build and rely upon a multi-year project pipeline. Having a dependable and long-term view of the project horizon allows for the development of robust project planning, right-sizing of our resources (especially for unique skills that have longer lead times to recruit or train), and building reliable financial projections upon which our key stakeholders can rely. KCS’s Reimagining and Transforming Rail program (RTR), sustainability, and other system assessments, combined with the routine support we provide to the MBTA’s development of the annual Capital Improvement Plan represent ways in which we can partner with our client to advance these important initiatives.

KCS also has a host of internal projects for which professional project management and support would facilitate the efficient planning and delivery. In addition to building advanced capability to support MBTA projects, over the next 12 to 18 months we will evaluate expanding the role of the current Supplemental Work team to support project management and delivery throughout the organization.

Finally, by the end of this business cycle, we will reassess the context of the project pipeline, examine opportunities that may arise, and reevaluate how the Fixed-Fee and Supplemental Work models meet the MBTA’s evolving needs. It is KCS’ intention to think outside the box to develop a truly transformative solution – fit for the future – to better secure our business continuity for years to come.