By GREGORY N. HEIRES
Public-sector watchdogs worry that quasi-government entity established to review major computer contracts will actually lead to less oversight and weaker control over the contracting costs.
Stung by contracting debacles like the crime-infested CityTime automated payroll project, the Bloomberg administration quietly set up the NYC Technology Development Corp. in July. The nonprofit entity will evaluate information technology contracts worth more than $25 million, or $5 million if they cover more than one agency.
“The administration has been embarrassed by the numerous instances of cost overruns, delays and theft that have plagued its procurement process, and what does it do?” asked Executive Director Lillian Roberts of DC 37, which represents 120,000 municipal employees in the city. “It decides to contract out its contracting!”
One concern is whether the new entity will allow the administration to skirt ordinary procurement rules, as well as the oversight of agencies and the City Council.
The NYC Technology Development Corp. will oversee computer projects from beginning to end. It will handle design, implementation and personnel training, and it will be staffed by 20 people, according to the New York Times, which first reported on the entity.
DC 37 Associate Director Henry Garrido, who heads the union’s project on contracting and revenue enhancement, noted that the new entity is permitted to bypass competitive bidding rules. The union helped expose corruption in the CityTime project. More than 10 consultants have been charged with bilking the city of $600 million.
“Good government advocates constantly point out that the risk of abuse increases notably when bidding procedures are weakened,” he said. “It boggles the mind that with the checkered history of its contracting the administration is doing this.”
The DC 37 Legal Dept. is studying the legality of the corporation.
The city comptroller’s office has greeted the creation of the new entity skeptically. Peter Thorne, a spokesperson for the comptroller’s office, told the Times that the track record of the Economic Development Corp. points to the problem of handing over city responsibilities to independent agencies.
In 2010, an audit by the comptroller revealed that the EDC owed the city $125 million from a 42nd Street project, a dormant fund, and the sale of city assets.
Another audit found the EDC failed to collect nearly $750,000 from an energy company to help a local community. The comptroller has also faulted the EDC for its failure to ensure that companies that received millions of dollars in city subsidies meet their commitment to create jobs.
Robert Ajaye, president of Electronic Data Processing Personnel Local 2627, said the union will be closely watching whether the new entity threatens the work of city computer employees whose responsibilities includes scrutinizing contracts. “Is this yet another attempt to circumvent the civil service system?” Ajaye asked. “My skeptical side says yes.’’
“This was done very quietly over the summer, which of course makes you wonder about the motive,” Garrido said. “Certainly there is a problem with a lack of transparency.”
This article is a revised version of an article in the October 2012 edition of Public Employee Press, the official publication of DC 37.
www.thenewcrossroads.com Posted October 15, 2013
