At Rikers Commissary, Prices Exceed Those at Local Stores Despite Pledge to Bring Costs Down
A revised commissary contract the Adams administration said would protect Rikers Island detainees and their families from excessive charges has instead locked in many prices that are substantially higher than those at local stores, a survey by THE CITY shows.
Under a provision of the revised contract carried over from the original signed during the pandemic, the commissary vendor, the Miami-based Keefe Group, is prohibited from charging the 6,700 people behind bars and their friends and family members more than nearby grocery stores and supermarkets do for the same products.
The prices listed on the shopping website during the original $13-million no-bid contract with Keefe — such as $3.62 for a single-serve cup of Cheerios or $4.41 for a small package of pasta and sauce — were exposed by THE CITY in 2023 as up to 50% higher than those in local stores.
Under the revised $33 million contract, which the Department of Correction touted as including protections against inflated charges, Keefe still charged more — sometimes twice as much more — for nine of 16 items at every local store THE CITY surveyed and on Instacart, which the contract also names as a benchmark.
Colliding Contract Clauses
The price disparities arise from conflicting provisions in the revised 167-page contract, which, like the original, the Department of Correction awarded without competitive bidding.
One provision dictates prices for more than 100 items that can either be purchased at the Rikers commissary by detainees or by others for them through an online Keefe delivery service called Securepak. The other states that what Keefe charges “shall not exceed the fair-market prices of the same items in local New York City area convenience stores, including Instacart supermarkets, during the same calendar year.”
The Velveeta Exception
THE CITY’s analysis found that for three of the 16 products surveyed, Keefe charged less than any of the local stores surveyed. They included Kellogg’s Club Crackers, single-serve cups of Velveeta macaroni and cheese, and boxes of Quaker Instant Oatmeal variety packs, with prices 11 to 75% lower.
What Price is Right?
One way to resolve the seeming conflict between the two contract provisions would be for the Correction Department or another city agency like the Comptroller’s Office to conduct an audit of the prices Keefe charged at the end of every year in comparison to neighborhood prices.
At the Council hearing, Conroy testified that Keefe has increased listed prices on three items, a move allowed under the contract after the first year. One of those hikes, for sugar packets, he pinned on “an error in typing,” with the price jumping from 11 cents to 30 cents per packet. Sugar packets are free at coffee shops and restaurants.
Conclusion
The findings of this survey suggest that the revised contract has failed to achieve its intended goal of reducing prices for Rikers Island detainees and their families. The contract’s provisions, which aim to ensure fair-market prices, have been circumvented, resulting in excessive charges for many essential items.
FAQs
Q: What is the purpose of the revised contract?
A: The revised contract aimed to protect Rikers Island detainees and their families from excessive charges by ensuring that prices at the commissary do not exceed those at local stores and supermarkets.
Q: What are the issues with the revised contract?
A: The contract has been criticized for failing to achieve its intended goal of reducing prices, with many items still being sold at inflated prices.
Q: What can be done to address these issues?
A: An audit of prices charged by Keefe at the end of every year in comparison to neighborhood prices could help resolve the seeming conflict between the two contract provisions.
Q: Why was the revised contract awarded without competitive bidding?
A: The original contract was awarded without competitive bidding, and the revised contract has also been criticized for being awarded without proper process.
