The State legislature and Inspector General’s Office have been unwilling to investigate the massive amounts of no-bid contracts and fraud.
NYS is not following procurement law and is allowing no-bid contracts from preferred vendors (either paybacks, kickbacks or vendors that the state has an obligation to fund i.e. charities, not-for-profits, healthcare, universities) without any oversight. The state agencies are bypassing the bid process and no-bid contracts are being awarded at supracompetitive prices of multiple times market price.

The NYS IG’s Office replied that contracts reimbursed by Federal money (including contracts paid for by Social Security money, Medicare and Medicaid) were not required to be put out for bid and no price comparisons need to be made. These contracts are being awarded to “preferred” vendors at multiple times competitive rates and are being reimbursed by taxpayer money including money coming from Social Security, Medicare and Medicaid. The IG Offices’s statement runs counter to NYS and Federal law including OMB 87 which governs the provisions states must follow when receiving federal funds. The Small Business Advocacy Task force has stated that Federal and State involvement in private enterprise where the government manipulates markets is a serious problem. We are a small business, we pay taxes and the State is blocking off markets for their own benefit, charging supracompetitive prices and undermining ours and other small businesses.

After trying to destroy small business, NYS then asks us to subsidize these no-bid contracts at inflated prices. We find this situation very disturbing as a small business and taxpayer. We want an investigation into these procurement processes.

“I’ve never met a state trooper who didn’t say you couldn’t follow the speed limit rules a little closer.” — Mr. Accountability, one $342 MILLION ticket later.