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Bill

HD 6099

A communication from the Office of the Inspector General (see Section 12 of Chapter 12A of the General Laws and Section 231 of Chapter 140 of the Acts of 2024) submitting a report entitled: The Steamship Authority’s Website Development Project

194th Legislature (2025-2026)

The bill publicizes governance, planning, and cost shortcomings in the Steamship Authority’s website project and urges reforms to improve oversight, project management, and account

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Bill Summary · HD 6099

Overview

  • Bill: HD 6099
  • Session: 194th
  • Jurisdiction: Massachusetts
  • Type: Communication from the Office of the Inspector General (OIG) presenting a report on the Steamship Authority’s Website Development Project
  • Date: December 18, 2025

Purpose of the bill (as presented by the OIG): To share findings from the OIG’s investigation into the Steamship Authority’s (Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority) website development project, highlight governance, planning, and implementation shortcomings, and outline recommendations aimed at improving oversight, project management, and accountability. The report also signals potential legislative interest in evaluating the Authority’s governance and enabling statutes.

Main Purpose and Intent

  • Document and publicize the shortcomings, missteps, and financial waste associated with the Steamship Authority’s website development project (launched in 2022 and shelved in 2024).
  • Call for governance reforms, improved project management practices, and stronger Board oversight.
  • Highlight potential legislative opportunities to scrutinize and modernize the Authority’s governance and statutory framework.
  • Flag concerns about the incoming leadership structure (new general manager in January 2026) and the continued influence of the current general manager via a senior advisor role.

Key Provisions and Changes Described in the Report

  • Chronology and scope: Detailed timeline of the website project, including procurement, contracting with ADK/Stellar Elements, change orders, and eventual suspension of the project.
  • Root causes identified:
    • Organizational culture issues (“tone from the top”) and lack of proactive, strategic project management.
    • Ambiguity about roles and responsibilities between the general manager, Board, and project management.
    • Poor planning and failure to heed consultant/vendor advice, with optimistic or incomplete information provided to the Board.
    • Misalignment between the public-facing website and the aging back-end reservation system (Saber's Book 'Em system).
  • Specific findings highlighted:
    • Pre-project failures: Longstanding risk and stagnation around the reservation system, single-point-of-failure concerns, and failure to secure/clarify license rights to Saber's source code.
    • Planning failures: Underestimation of timeline, inadequate scoping (especially around APIs), and neglect of federal grant requirements.
    • Project management failures: Unqualified project manager, insufficient scoping and cost estimation, withholding critical documents from the Board, and costly change orders.
    • Oversight failures: Board members’ limited understanding of oversight duties, inadequate procurement policy alignment with fiduciary responsibilities.
    • Financial losses: Widespread costs with millions spent on website development and related services; the project was suspended with unresolved integration risk to a new reservation system.
  • Federal funds and grant administration:
    • The Steamship Authority pursued 80% federal reimbursement via Ferry Boat Funds but did not consistently establish clear goals or timelines, risking noncompliance or need for fund repayment.
    • Issues with how reimbursements were processed and documented; several costs were incurred prior to the approved Notice to Proceed, complicating eligibility for federal reimbursement.
  • License and source code issues:
    • Historical attempts to license Saber's source code (2003, 2010) and a 2024 amendment granting full rights to Saber's source code, with questions about the existence and enforceability of prior agreements.
    • Recordkeeping gaps leading to potential misinterpretation of licensing rights and costs.
  • Governance recommendations:
    • Strengthen procurement practices, project reporting, and Board engagement.
    • Consider legislative review of the Steamship Authority’s enabling statute and governance framework.
    • Evaluate the potential impact of the senior advisor arrangement for the outgoing general manager on the incoming leadership.
  • Broader context:
    • The report notes related ongoing capital projects (e.g., Woods Hole terminal reconstruction) and other operational challenges (staffing, service reliability) as part of a broader governance and project-management picture.

Who is Affected

  • Steamship Authority governance bodies:
    • Governing Board (Board of Governors)
    • Port Council
  • Steamship Authority leadership:
    • Incoming general manager (scheduled January 2026) and the current general manager (entering senior advisor role)
  • Public stakeholders:
    • Islanders (Martha’s Vineyard, Nantucket)
    • Cape Cod communities, businesses, commuters, and freight users
    • General taxpayers via public funds oversight
  • Legislative actors:
    • Massachusetts Legislature (oversight and potential statutory reforms)
    • MassDOT and FHWA in relation to federal funds and oversight

Procedural and Timeline Aspects

  • Report timeline: Investigates activities from the website project’s inception through its shelving in 2024, with continuing references to 2025 developments (e.g., reservation system procurement).
  • Notable dates:
    • 2022–2024: Website project launched, suffers multiple delays and cost overruns; ultimately shelved in 2024.
    • June 2025: New reservation system contract awarded to E-Dea SpA for $5.779 million; website project remains suspended.
    • January 2026: Incoming general manager anticipated; concerns raised about the 18-month senior advisor arrangement for the outgoing general manager.
  • Financial: The OIG notes more than $4 million spent on website development and ongoing maintenance costs prior to shelving, plus subsequent actions related to the new reservation system.

Practical Takeaways for Readers

  • The bill conveys a substantive, audit-driven critique of the Steamship Authority’s website project, emphasizing governance, project management, and financial controls.
  • It underscores the risk of pursuing public IT projects without aligning them to core operational systems (reservation system) and proper senior leadership oversight.
  • It signals legislative interest in potential governance reforms and statutory updates to improve accountability and stewardship of public resources tied to quasi-public entities like the Steamship Authority.

Compiled from official sources — confirm details with the bill’s official record.

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