Rikers’ Controversial Commissary Deal Will Be Opened to All Bidders Following Reports of High Prices, Poor Service

Opening Up the Bidding Process

The city’s Department of Correction says it will open the bidding process to any contractors who want to operate its jail commissary after a series of articles by THE CITY exposed high prices and poor service by a private no-bid vendor, the Keefe Group. Even after THE CITY’s initial investigation and a knock by the comptroller, the Adams’ administration last March awarded a $33 million no-bid deal to the Miami-based private equity firm that previously charged incarcerated people and their families twice as high as local stores on many products.

At a City Council hearing on Thursday morning, DOC deputy commissioner for legal matters James Conroy said the Keefe contract expires in June 2026 and the department plans to issue a so-called Request for Proposals to open bidding to any interested contractor, including those owned by minorities, to possibly take over.

Giving Money Back

Also Thursday, the Council discussed a proposed bill that would require jail officials to return all unspent commissary money to detainees before they are released. The legislation, being sponsored by Councilmember Crystal Hudson (D-Brooklyn) comes after THE CITY in 2023 detailed how former detainees at Rikers Island left a total of $4.2 million in commissary accounts.

Conroy said the Adams’ administration is against the proposed bill, arguing that it would put people in custody and city employees “at significant risk of harm.” He and other jail officials did not explain why jail officials couldn’t issue checks or money cards as some Council members suggested later during the hearing.

Eye on Keefe

As for Keefe, Conroy cited THE CITY’s investigation into overpricing and poor services but defended the contract. “We are aware of criticisms relating to the vendor providing commissary services in our facilities,” he said. But, he testified, the DOC receives very few complaints — less than one percent of total orders last year — about poor service.

Steep Markups

Under the deal, prices for items such as toothpaste and soda cannot change over the first year. Afterwards, Keefe can seek a price hike for no more than 20% of the items, and the increases can’t exceed 5%. So far, there have only been three product increases, excluding stamps which go up based on what the post office charges, according to Conroy.

One of those price hikes, for sugar packets, was “due to an error in typing” and went from 11 cents to 30 cents per packet. Sugar packets are free at coffee shops and restaurants.

Conclusion

The Department of Correction’s decision to open up the bidding process for its jail commissary is a step in the right direction. By allowing all contractors, including minority-owned businesses, to bid on the contract, the city can ensure that the commissary system is run fairly and efficiently. Additionally, the proposed bill that would require jail officials to return unspent commissary money to detainees before they are released is a positive step towards holding the city accountable for its handling of commissary funds.

FAQs

Q: What is the controversy surrounding the Keefe Group’s contract with the Department of Correction?
A: The Keefe Group, a private vendor, was awarded a $33 million no-bid contract to operate the jail commissary, despite reports of high prices and poor service.

Q: Why is the Department of Correction opening up the bidding process for its jail commissary?
A: The department is opening up the bidding process to ensure that the commissary system is run fairly and efficiently, and to allow minority-owned businesses to participate in the bidding process.

Q: What is the proposed bill that would require jail officials to return unspent commissary money to detainees before they are released?
A: The proposed bill, sponsored by Councilmember Crystal Hudson, would require jail officials to return all unspent commissary money to detainees before they are released.

Q: Why is the Adams’ administration opposed to the proposed bill?
A: The Adams’ administration is opposed to the proposed bill because it would put people in custody and city employees “at significant risk of harm.”