NYCHA Audit Reveals Lack of Oversight and Waste in Small Contracts
Corruption and Inefficiency
The New York City Housing Authority (NYCHA) has been criticized for its lack of oversight in small contracts awarded to vendors, resulting in potential corruption and waste. An audit by Comptroller Brad Lander’s office found that in dozens of cases, NYCHA could not provide evidence that the work paid for had actually been done.
Background
The audit was conducted in response to the February federal arrests of 70 NYCHA workers on charges of taking kickbacks in exchange for handing out hundreds of "micro-contracts" that don’t require the rigorous and public competitive bidding protocols of larger contracts. The scheme, which dated back to at least 2013, involved NYCHA workers pocketing a total of $2 million in bribes to award $13 million in small contracts at nearly 100 developments.
Audit Findings
The audit examined $135 million in smaller contracts awarded by development level managers in 2022 and 2023. The findings revealed that:
- $30 million in government waste occurred during that time due to lack of documentation to back up the work NYCHA paid for.
- More than $300,000 of the contracts, or 46%, lacked documentation to show the work had actually been performed.
- A sampling of 19 purchase orders, totaling $186,000, showed that $176,000 in repairs were made without documentation.
Recommendations
The comptroller’s office recommended that NYCHA adopt a "Yelp-like" app to allow tenants to file comments on the quality of the repairs after they’re complete. This would provide valuable feedback to inform NYCHA’s decisions on which vendors to hire and how to improve the quality of repairs.
NYCHA Response
NYCHA spokesperson Michael Horgan stated that the agency is "diligently reforming its procurement, contract administration, and vendor management processes." However, the agency has yet to fully implement five of the 14 recommendations made by the city Department of Investigation, which led the probe.
Conclusion
The NYCHA audit highlights the need for improved oversight and accountability in the awarding of small contracts. The lack of documentation and poor tracking of vendor performance has led to potential corruption and waste. By implementing reforms, such as a tenant feedback app, NYCHA can improve the quality of repairs and reduce the risk of corruption.
Frequently Asked Questions
Q: What is the purpose of the audit?
A: The audit aims to investigate the lack of oversight in small contracts awarded to vendors by NYCHA.
Q: What were the findings of the audit?
A: The audit found that NYCHA could not provide evidence that the work paid for had actually been done in dozens of cases, resulting in potential corruption and waste.
Q: What are the recommendations of the audit?
A: The comptroller’s office recommended that NYCHA adopt a "Yelp-like" app to allow tenants to file comments on the quality of the repairs after they’re complete.
Q: What is NYCHA’s response to the audit?
A: NYCHA spokesperson Michael Horgan stated that the agency is "diligently reforming its procurement, contract administration, and vendor management processes."
