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Board committee advances SFMTA vendor-managed inventory pilot amid union concerns
Summary
The Budget & Finance Committee forwarded SFMTA’s two-year vendor-managed inventory pilot to the full Board without recommendation after extended debate. SFMTA says the pilot will reduce a backlog of parts requests and speed repairs; labor representatives say it risks outsourcing purchasers’ work and urged review under Prop J.
SFMTA officials told the Budget and Finance Committee on July 24 that a two‑year vendor‑managed inventory (VMI) pilot would create a faster, more reliable supply chain for rail and bus parts and reduce a backlog of purchase orders that has left vehicles out of service.
Virginia Harmon, SFMTA’s contracts and procurement manager, said the pilot is a focused purchasing contract for critical parts with performance metrics the vendor must meet, including a 98 percent fill rate for critical items within 24 hours and liquidated damages for failures. "This pilot will allow us to test an alternate method, in a relatively risk‑free environment where we anticipate a…
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