Audit Report - Nyc Comptroller Dcas Covid Procurements Audit Glance 2023

Summary

A Report at a Glance, dated February 7, 2023 and numbered FK21-087S, on a review of COVID-19 emergency procurements by the New York City Department of Citywide Administrative Services (DCAS). The review asked whether DCAS exercised sufficient oversight of emergency procurements and whether purchases were adequately documented, consistent with City policy and reasonably priced. It states that between March 1 and June 30, 2020, DCAS entered into procurements with an initial value totaling over $1.5 billion. The review found that purchases were generally necessary but that DCAS did not consistently document vendor background checks, price comparisons or approvals for prepayments, and that one face shield order cost over 250% higher than average. The report lists four recommendations, and DCAS disagreed with all of them.

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Full text

        REPORT AT A GLANCE                                               REVIEW FINDINGS

COVID-19 Emergency                                                         DCAS generally
Procurements of the New York                                               showed that purchases
                                                                           were necessary to

City Department of Citywide                                                respond to the COVID-
                                                                           19 emergency.

Administrative Services
                                                                           DCAS did not
What questions did the review look at?
                                                                           consistently document
   Did the New York City Department of Citywide Administrative            background checks of
    Services (DCAS) exercise sufficient oversight of COVID-19              vendors to ensure that
    emergency procurements?                                                they were responsible
                                                                           and reliable.
   Were COVID-19 procurements adequately documented,
    consistent with City policy, and reasonably priced?
   What lessons can be applied to future crises?

Why does it matter for New Yorkers?                                        DCAS did not
One of DCAS’ key responsibilities is buying and maintaining                adequately document
equipment stockpiles for the City—a function that proved critical          price comparisons.
during the COVID-19 pandemic. In spring 2020, as the pandemic
intensified, DCAS was charged with procuring emergency goods
and services, including personal protective equipment (PPE),
ventilators, and other essential products. Between March 1 and
June 30, 2020, DCAS entered into procurements of goods and
services with an initial value totaling over $1.5 billion.
                                                                           DCAS did not obtain or
                                                                           document approvals
While DCAS should be applauded for quickly responding to the               for prepayments.
pandemic during a tumultuous time, our review found that the
agency did not adequately document purchases or approvals, nor
did it document background research to ensure that vendors were
reliable, responsible, or cost-effective. As a result, DCAS paid
inflated costs for some goods—in one case, the price of an order of
face shields was over 250% higher than average. Several vendors
provided defective goods, and some did not fulfill any orders at all.
Taxpayers should feel confident that City agencies are doing
everything possible to keep costs down, even in emergency
situations. Unfortunately, DCAS did not always do this. In the future,
the agency should strive to safeguard the fiscal interests of New
York City by following all relevant procurement guidelines.

What changes did the agency commit to make
following the review?
   DCAS generally disagreed with the review’s findings and
    disagreed with all recommendations; however, agency officials
    said that they would follow City guidance and directives related
    to emergency procurements in the future.



                                                                         February 7, 2023 | FK21-087S
    Report Recommendations                                                     Agency Response

    Ensure that staff perform and document responsibility reviews and
1   appropriately consider and report results.                                   DISAGREED

    Ensure that it documents price analyses, which are used to ensure that
2   prices are reasonable and form the basis for vendor selection.               DISAGREED

    Ensure that staff maintain supporting documentation in procurement files
3   and systems of record.                                                       DISAGREED

    Determine whether City procurement rules should be changed to allow
4   advance payments during emergencies, and, if so, establish rules and         DISAGREED
    protocols to mitigate risks when advance payments might be necessary.




         Visit our website to suggest an audit and view our recommendations tracker.
                                 https://comptroller.nyc.gov/audit


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