City Hall’s $41M Blunder: The Costly DocGo Migrant Shelter Deal
Mayor Adams is still attempting to secure funds from Washington for President Biden’s migrant influx, with the cost falling on local and state taxpayers at $3.6 billion this year.
However, the White House is hesitant due to City Hall’s lack of transparency in accounting for migrant spending.
The administration misled the public about cutting ties with DocGo, a no-bid contractor, while quietly signing new agreements with the company, despite previous reports of poor services.
The city awarded DocGo a $432 million contract for migrant services, despite its lack of expertise in housing large numbers of people, bypassing other potential contractors.
The latest contract with DocGo for a Long Island City migrant shelter, costing $41 million, raises concerns over billing practices and lack of oversight in the selection process.
The city’s handling of the DocGo contract raises questions regarding the need for competitive bidding and transparency in spending taxpayer dollars.
Despite concerns over high billing rates and questionable padding, the city failed to involve other service providers for potential cost efficiency.
The timing and lack of information surrounding the DocGo contracts suggest a lack of transparency and accountability in City Hall’s decision-making process.
The overall situation raises doubts about the handling of taxpayer funds and the government’s accountability in migrant services contracting.
Nicole Gelinas is a contributing editor to the Manhattan Institute’s City Journal.
