Dear New Yorkers,

Moldy rooms. Unauthorized subcontractors. Shoddy casework.

In May 2023, the Adams Administration rushed to give an emergency $432 million no-bid contract to DocGo, the medical service company that was hired to provide temporary housing and support services for asylum seekers – despite having zero experience with that.

For months, my office repeatedly sounded the alarm. Now, new audit findings released today unearth what we long suspected: The Adams Administration’s haphazard management of the DocGo contract wasted millions of taxpayer dollars.

After the Adams Administration insisted on moving forward with DocGo (despite my objections), our Bureau of Audit launched a detailed investigation. Reviewing invoices and records, we found a wide range of fiscal mismanagement and shoddy oversight – with each misstep revealing just how deeply the Administration failed to vet the company or oversee its work.

Here are some of the most concerning findings from our audit of City Hall’s management of DocGo:

Nearly 80% of the $13.8 million paid to DocGo for expenses incurred in May and June 2023 (the first two months of the contract) were inadequately supported or not allowed.

DocGo overpaid security subcontractors by $2 million. This includes $583,274 in profit for security guards that were not authorized when the costs were incurred.

DocGo flouted the rules to hire unauthorized subcontractors. DocGo only submitted 29% of its vendors for review as required, and HPD did not review and approve a single one.

DocGo skimmed $400,000 in overhead for almost 10,000 unused hotels rooms.

HPD failed to ensure DocGo staffed hotels with the number of caseworkers and social workers specified in the contract. This failure may have denied asylum seekers the services necessary to move toward self-sufficiency and stable housing, and therefore leave the City’s care.

80% of the 189 hotel rooms auditors visited in New York City and upstate had at least one deficiency, and a small number posed serious health and safety hazards – from leaking roofs to mold and infestations.

The fiscal mismanagement coupled with the hazardous conditions and lack of case management are a sign of both poor leadership – and cruelty. Thousands of asylum seekers travelled thousands of miles to seek safety and support and instead were met with inadequate services, confusion, and infestations.

These audit findings make me relieved that the Adams Administration is finally winding down its dubious $432 million no-bid contract with DocGo. And my office will readily give our stamp of approval to more capable service providers like Jewish Family Services of Western New York (JFS), the vendor taking over for DocGo in parts of upstate New York. Unlike DocGo, JFS has experience providing services to asylum seekers and their families.

All the while, our team of auditors will continue shedding light on the issues that matter most to New Yorkers. Read the full audit or watch our announcement here.

In solidarity,

Brad

Office of the New York City Comptroller
Our mailing address is:
Office of New York City Comptroller Brad Lander
1 Centre Street
New York, NY 10007
United States
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