Taxpayers in the Big Apple are losing out on millions of dollars because of New York City Mayor Eric Adams’ (D) recent decision to hand out no-bid contracts to tackle the illegal immigration crisis in the city.
A report showed that Adams’ negotiations, struck by New York City’s emergency contracting system, have paved the way for multiple nonprofit organizations to charge “exorbitant rates” for staffing at various shelters housing illegal immigrants.
“The city allowed for-profit companies to take advantage of an emergency in its nascency,” the report, released by city Comptroller Brad Lander’s office, states.
The New York Post pointed out that the comptroller’s contract review found that supervisors and security staff at several migrant shelters across New York City were paid “wildly different rates” despite providing the same services.
NYC taxpayers fleeced out of millions of dollars under no-bid migrant contracts rushed by Adams admin: audit https://t.co/7EKeW7Teb8 pic.twitter.com/6CqPrsC0BU
— New York Post (@nypost) February 27, 2024
Organizations such as SLSCO charged hourly rates that were 237% over what Essey charged for a similar contract position. The healthcare company DocGo charged 146% more than Essey.
As a security guard for SLSCO and DocGo, employees were paid about $90 and $50 hourly, respectively.
The report said Adams’ no-bid contracts were “radically more expensive” than hiring new city employees as staff at the migrant shelters.
“Annualized, the savings would total approximately $50 million if certain staffing had been provided by hiring city employees rather than through the emergency contract,” the report stated.
Of the four no-bid contracts, three were negotiated without any bidding under the emergency powers granted by the comptroller in November 2022 to deal with the surge in illegal immigrants in New York City, according to the New York Post.
SLSCO was one of the contracted companies. The report found that this Texas-based firm was handing out nearly $1,500 per every eight-hour shift for individuals working as a shelter supervisor.
DocGo, a firm initially responsible for conducting COVID-19 tests that now deals with migrant shelters, was reportedly paying site managers $2,000 daily. In contrast, Essey paid supervisors a little under $550 per day.
It is estimated that the massive staffing costs from SLSCO were nearly three times as high as if officials used city employees for the same services.
“The Comptroller’s Office estimates that certain staffing costs to provide services to asylum seekers at the Row Hotel were approximately 2.5 times higher under an emergency contract with SLSCO than if the city had delivered those same services with city employees,” the report pointed out.
