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$3 a pound for laundry? NYC’s emergency migrant contracts reveal costly premium for basic service.
By
Elizabeth Kim
Published Sep 21, 2023
Modified Sep 21, 2023
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Alexi Rosenfeld/Getty Images
By
Elizabeth Kim
Published Sep 21, 2023
Modified Sep 21, 2023
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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 provide residents with clean linens and towels.
Gothamist examined laundry costs associated with migrant shelters charged by three different companies who secured emergency contracts with the city: DocGo, HappyNest and Garner Environmental Services.
According to the contracts, DocGo charges $1.50 per pound, while HappyNest charges $43 for each bag that has a maximum weight of 27 pounds, a rate that comes out to $1.60 per pound.
At the highest end, Garner charges $3 per pound.
All three prices were significantly higher than the cost of a non-emergency laundry contract Gothamist obtained between the city’s Department of Homeless Services and Sun International Trading. Under that contract, the city pays 99 cents per pound for laundry services at various shelter sites.
The contract with Sun International Trading is set to expire at the end of the year, according to the city comptroller’s database.
Adams has defended the city’s contracting process related to migrant spending, and specifically the selection of DocGo, which also worked for the city during the pandemic. Emergency contracting, which was written into the City Charter in 1989, is intended to allow city agencies the ability to quickly purchase goods and services in urgent situations
“You do things based on the information in front of you, you don't do things based on predicting what the future information is going to be,” the mayor said Wednesday during an interview on NY1. “We're dealing with an emergency. This was a company we put in place to assist during an emergency.”
Reached for comment, Charles Lutvak, a spokesperson for Adams, said it was difficult to make an “apples to apples” comparison with contracts.
In the case of DocGo and Garner Environmental, the price of laundry was bundled in with other services that included security, food and medical services.
The contract with HappyNest is solely for laundry services provided to the city’s emergency shelters for migrants. According to its website, the company has locations in 37 states and offers both personal and commercial laundry services.
After publication of this story, City Hall clarified that the costs are maximum amounts but that the city tries to pay less when it can.
Lutvak credited the administration’s emergency contracting powers for preventing migrant families from having to sleep on city streets.
“If the comptroller decides to put politics over the welfare of people seeking asylum and declare this crisis no longer an emergency, asylum seekers will have to sleep on the street while they wait for the comptroller to approve city contracts,” he said in a statement. “We will continue to hold our contractors to the highest standards for providing care and services.”
This story has been updated with additional information provided by City Hall after publication.
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Elizabeth Kim
Elizabeth Kim is a reporter on the People and Power desk who covers mayoral power. She previously covered the pandemic, housing, redevelopment and public spaces. A native of Queens, she speaks fluent Mandarin. Got a tip? Email [email protected]
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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