Purpose

The objective of our examination was to determine whether the Department of Health (DOH) followed the proper procurement procedures when officials directed Maximus, Inc. (Maximus) to purchase approximately $170,000 in printing and copying equipment.

Background

DOH added $435 million in contract amendments for services outside the scope of the original contract. The services were related to the New York Health Benefit Exchange, and were not subject to competitive bidding or OSC approval. The amendments brought the total contract amount to $684 million and extended the life of the contract to August 19, 2017. This is the fourth in a series of letters related to this contract.

Key Findings

We found DOH could not provide evidence to support Maximus purchased the equipment through the formal, competitive process DOH is required to follow under New York State procurement laws.

Purchasing this same equipment at full retail price could have saved DOH over $20,000, and possibly more with a competitive procurement.

Key Recommendations

• DOH should ensure staff understand and comply with State procurement laws, including procurements conducted through third parties. DOH was receptive to our recommendation.