Objective

To determine the extent of implementation of the two recommendations included in our initial audit report, Oversight of Construction Management Contracts (Report 2020-S-43).

About the Program

The Office of Parks, Recreation and Historic Preservation (Parks) is responsible for operating and maintaining the State park, recreation, and historic site system to conserve, protect, and enhance the natural, ecological, historic, cultural, and recreational resources of New York State. This system includes over 250 parks, historic sites, recreational trails, golf courses, boat launches, and more. Parks oversees a range of capital projects to improve these sites.

In an effort to better ensure certain capital projects are executed and constructed properly, Parks occasionally contracts with firms that specialize in providing construction management (CM) services. In 2012, Parks entered into a contract with the Dormitory Authority of the State of New York (DASNY) to serve as the construction manager of a $25 million Niagara Falls State Park revitalization project. After several amendments, this contract remained active until November 30, 2021 and totaled $14 million. In addition to the DASNY contract, Parks enters into 3-year contracts with private firms to serve as the construction manager (term contracts). Parks currently has 10 active CM term contracts with private firms totaling $24.6 million for 108 projects, of which 44 are completed.

The objective of our initial audit report, issued June 24, 2021 and covering the period June 29, 2017 through July 17, 2020, was to determine if Parks was adequately monitoring construction management contracts to ensure they meet contract terms and requirements. The audit found that Parks paid over $229,000 in fees under the contract with DASNY that could have been avoided if it had used a term contract. Furthermore, we found Parks officials do not receive detailed support for payments made under the DASNY contracts; therefore, they cannot monitor payments made under this contract as effectively as term contracts.

Key Findings

Parks officials made progress in addressing the issues identified in our initial report. Of the initial report’s two recommendations, one was implemented and one was partially implemented.