‘Outstanding Concerns’: NYC Comptroller Denies City’s $432 Million Contract for Migrant Services

‘Outstanding Concerns’: NYC Comptroller Denies City’s $432 Million Contract for Migrant Services

New York City Comptroller Brad Lander denied the city’s request for a $432 million no-bid contract with DocGo for migrant services.

The city has been overrun with migrants since Mayor Eric Adams claimed the city is a sanctuary city.

Landor told Department of Housing & Preservation Development Commissioner Adolfo Carrión Jr. (emphasis mine):

I am writing to inform you that contract #20248801671 (the “Contract”), an emergency procurement for $432 million for services provided by Rapid Reliable Testing NY LLC, commonly known as DocGo Inc. (the “Vendor,” or “DocGo”), was reviewed by my Office, and is being returned to the Department of Housing Preservation and Development (“HPD”) without approval due to numerous outstanding issues and concerns.

Please note, my Office does not make such a decision lightly. Since I took office as Comptroller on January 1, 2022, our Bureau of Contract Administration (BCA) has registered over 30,000 contracts submitted by City agencies; we have returned fewer than 75, or 0.22%. During the same period, we have approved 303 emergency contracts that have been submitted to our Office for review, 69 of which were specifically related to the asylum seeker crisis. This is the first emergency contract we have declined to approve.

The list has some pretty serious concerns.

It blew me away when Lander told Carrión that he knows DocGo is a medical services company. It has no background in logistics, social services, or legal services.

“There is little evidence to suggest that Rapid Reliable Testing NY LLC had the expertise to provide the services it has been contracted for, calling into question HPD’s vetting of the vendor’s prior experience and capacity that served as its purported basis for vendor selection,” wrote Lander.

Dang:

In addition, contradictory statements made by HPD raise questions about both their selection and the fiscal ability to provide the described services.

In Section IV of the Written Emergency Determination (made pursuant to Section 3-06(c)(3) of the PPB Rules) included in the contract submission package, HPD indicates that Rapid Reliable Testing NY LLC “…was referred to HPD …” and “The vendor chosen confirmed having the capacity to arrange temporary housing and support services to help and aid asylum seekers arriving to New York.”

This appears to contradict statements made in the Application for Waiver that HPD submitted to our Office in July, seeking a cash advance of $4 million for this contract (a rare step that we have granted in two other asylum seeker related emergency procurements, but denied in this case).

Lander also brought up articles that questioned DocGo’s reputation:

A number of alarming and adverse news articles further detail the inflation of the company’s financial value, interference with law enforcement, and workplace violations, both with respect to DocGo as well as Ambulnz, Inc., further raising concerns as to the failure to disclose referenced above, highlighting reasons why vendor responsibility is a key concern.

A New York Post article reported that DocGo hired over 50 unlicensed security guards for hotels in upstate New York housing migrants.

Just wow:

Three subcontractors hired by DocGo — Trace Assets Protection Service and Wawanda Investigations and Security Company — were issued warnings on Friday by the New York Department of State, which oversees security licensing to subcontractors.

The companies were given until Wednesday to provide proper paperwork.

“Based on the preliminary findings of our audit, the Department has a plausible reason to conclude that the following persons are providing security services at the hotels without appropriate authorization and in violation of applicable law,” Whitney Clark, deputy secretary of state for business development, wrote in the letters, which were obtained by The Post.

Failure to respond “could result in suspension or revocation” of their licenses, Clark wrote. Clark alleges that Wawanda Investigations had 36 unlicensed guards and Trace Assets had 16 without proper paperwork.

Gov. Kathy Hochul already ordered a review of DocGo: “To protect the safety and well-being of all New Yorkers, Governor Hochul ordered a State review of DocGo’s contract to provide services to asylum seekers and that review is ongoing.”

Erie County is one of three places that have hotels using security guards. Do you remember what happened in Erie County?

Pepperidge Farm remembers: NY Democrat: Erie County Won’t Take More Migrants After Second Alleged Assault Involving Asylum Seeker

Lander mentioned his office wants to know DocGo’s true motivation after what CEO Anthony Capone told an investor: “We did this, in large part, because it gave us all of the credibility to win the [$4 billion] Border Patrol” contract. “Now that we are one of the largest care providers for asylum seekers in the country, it gives us enormous credibility. And we have references from the city who handles the largest amount.”

Lander questioned Capone’s motivations even more due to his glee at the political gridlock over immigration: “There’s almost no chance that there’s going to be federal legislation which solves this problem. Almost none. All you have to do is understand the dilemmas with each one of the solutions and know that it will not happen. It’s certainly not happening before the next election cycle. But I doubt it will ever happen.”

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