New York City is paying as much as three times more for contracted laundry services at some migrant shelters compared to traditional homeless shelters, according to a Gothamist review of three contracts entered under the city’s emergency no-bid contracting process.
The premium underscores the high costs often associated with an emergency procurement procedure that is used during moments of crisis, such as the pandemic and the ongoing migrant influx that has strained the city’s shelter system with roughly 60,000 migrants, according to recent City Hall figures.
But more than a year into the migrant crisis, Mayor Eric Adams’ power to use such emergency contracts is coming into question. On Thursday, the City Council is set to hold a hearing that will address migrant expenses and the city’s emergency contracting procedure.
Earlier this week, City Comptroller Brad Lander threatened to “narrow” the mayor’s emergency contracting powers after discovering numerous problems with a $432 million contract with DocGo, a medical services firm that is facing investigation for potentially improper conduct and alleged mistreatment of migrants.
Members of the City Council have also been scrutinizing costs associated with the migrant crisis, which has also prompted the mayor to call for dramatic budget cuts.
“When do we plan to end the emergency contracts?” said Gale Brewer, a Manhattan city councilmember who chairs the committee on oversight and investigations.
She also expressed concern that an over reliance on contractors would hamper city agencies from being able to manage the crisis on their own once the contracts end.
Adams is not the first mayor to face criticism over emergency contracts. In the wake of the pandemic, financial watchdogs accused vendors contracted to respond to the pandemic under former Mayor Bill de Blasio of wasteful spending and overstaffing.
But laundry is a service that the city has historically contracted for at shelters, which are required to…
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