Gothamist

A non-profit newsroom, powered by WNYC.

Gothamist

WNYC Listen Live

Donate

 

 

News

CEOs of companies getting $5 billion for NYC migrant care skip meeting designed to grill them


By

Arya Sundaram

Published Sep 21, 2023

Modified Sep 21, 2023


Share

FacebookTwitterRedditEmail


Never miss a story

 Email address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .

Recently arrived migrants gather outside of the Roosevelt Hotel in New York City on Aug. 14.

 

Spencer Platt/Getty Images


By

Arya Sundaram

Published Sep 21, 2023

Modified Sep 21, 2023


Share

FacebookTwitterRedditEmail


We rely on your support to make local news available to all

Make your contribution now and help Gothamist thrive in 2026. Donate today

Gothamist is funded by sponsors and member donations

New York City Council members grilled Adams administration officials in a heated probe on Thursday afternoon, asking whether the city is doing enough to vet the contractors slated to rake in more than $5 billion to shelter and care for newly arrived migrants.

Only three of the roughly 200 such contracts had a competitive bidding process, according to an analysis by the Council Oversight and Investigations Division. And the majority, 125 contracts, were fast-tracked through an emergency contracting system, bypassing the regular approval and review process.

“With this stream of new arrivals showing no signs of stopping, at what point do we stop treating this as a temporary emergency and contracting under looser emergency rules?” Oversight Committee Chair Gale Brewer said.

Seven executives from the top companies and nonprofits hired were invited to testify, but they didn't show up. Several councilmembers — including Brewer and contracts committee chair Julie Won — alleged they were told to skip the meeting by the Adams administration. A spokesperson for the administration said that was not the case.

"We did not instruct any of our contractors not to appear to testify at the hearing, and we did not violate any charter provisions," City Hall spokesperson Kayla Mamalek told Gothamist in a statement.

Won listed each of the invited executives’ names, titles, and the price tag of each of their organizations’ multi-million-dollar contracts.

Agency leaders present at the hearing, the czars of the city’s response to the influx of migrants, fiercely defended their contracting process. Though more migrants continue to arrive — more than a year has passed since the first chartered migrant bus arrived from Texas — officials said the flow of migrants at any given time has continued to remain unpredictable.

The expedited emergency timeline has been necessary to meet the urgent demand, they said, and they claimed they maintained a thorough review of the applicant pool. When possible, the city relied on existing contractors already hired by the city, they testified.

"We're still going through a robust vendor selection process," city Emergency Management Commissioner Zach Iscol said. "We're still getting final approval.”

Many of the more than 200 emergency sites the city has erected in recent years are in hotels, which have councilmembers and advocates have criticized for high costs and lack of laundry and cooking facilities. The city is working on transitioning to longer-term sites, officials said — but that process could take years.

Molly Wasow Park, the commissioner of the Department of Social Services, which oversees the city’s homeless shelter system, said her agency is renewing “a number” of emergency shelter contracts for three-year terms it determines other appropriate locations moving forward.

“The goal is not to continue to use hotels long-term,” Park said.

“We need to continue to respond in real time,” Park later added. “At the same time, we are doubling down and planning for long-term strategies, but those long-term strategies won't be in place overnight.”

But the officials’ assurances appeared to do little to satiate the councilmembers, who continued to press them for answers.

Won said more than half of the shelters in her district remain empty, only surrounded by National Guard members, because the nonprofits hired haven’t received advance payment, or have yet to ramp up their capacity.

"You tell me that it's moving faster, but in some cases it's not," Won told officials.

A recurring name was top contractor DocGo, a medical services provider that manages more than two dozen shelters across the state, which Adams has signaled he will continue to use over the comptroller’s objections. The company is being investigated by the state attorney general over allegations of mistreatment of migrants in its care. DocGo’s CEO resigned over the weekend, after he admitted his biography falsely stated he had a master’s degree.

Councilmembers continued to balk at what they called overpayment for bulk services. For example, the city pays DocGo $170 per hotel room per night, or about $5,100 per month. The Department of Housing Preservation and Development said they agreed to the price tag to accommodate the higher hotel room costs in New York City.

This story has been updated with additional comment from City Hall.

Tagged

new york city

housing

Politics

Race And Justice Unit


Arya Sundaram

Twitter

Arya is a reporter covering race and justice. Got a tip? Email: [email protected] or reach Arya on Signal at 512-650-8767.

Read more

Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


MORE news

5 men charged with trespassing in 2 Manhattan manhole cases

Two people who were found soaking wet and smelling of sewage say they went underground to look for jewelry, according to police and a criminal complaint.

By

Charles Lane

Published Oct 23, 2026 at 7:49 p.m. ET


6-year-old girl breaks leg after getting hit by falling bricks in Queens

The girl was walking with her mother in Maspeth on Thursday. The Department of Buildings cited the owner of a garage for “failure to maintain” it.

By

Charles Lane

News

6-year-old girl breaks leg after getting hit by falling bricks in Queens

The girl was walking with her mother in Maspeth on Thursday. The Department of Buildings cited the owner of a garage for “failure to maintain” it.

By

Charles Lane


Mamdani extends ban on permits for new street fairs due to NYPD overtime

By

Carol Chen

Inside the Midtown Bus Terminal rebuild: Decks over Lincoln Tunnel approach, a new park

By

Ramsey Khalifeh

Black couple seeking Queens apartment sues over racist text from broker

By

Brittany Kriegstein


Never miss a story

Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.

Sign upEmail address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .