Doc-No-Go.
New York City Comptroller Brad Lander rejected the city’s no-bid $432 million migrant housing and care contract with a medical services provider Wednesday — citing the company’s lack of expertise and other controversies.
“My office did not make this decision lightly. After a careful review, we are declining to approve this contract due to numerous outstanding concerns,” Lander said in a statement about his decision to return the Dept. of Housing Preservation and Development’s nine-figure deal with DocGo.
There is “little evidence” to suggest that DocGo – which was formerly known as Rapid Reliable Testing NY LLC – had the experience necessary to provide housing, transportation, and even social services to the thousands of migrants flooding the city each month, Lander continued.
“It is a medical services company, not a logistics company, social services provider, or legal service provider,” he pointed out in the denial letter, noting “reports of staff mistreating or misleading asylum seekers, failing to properly respond to reported assault incidents, and inadequate service provision [that] further exacerbate these concerns.”
Lander also cited previous reports of possible “inflation of the company’s financial value, interference with law enforcement, and workplace violations.”
Lander’s comments come shortly after news broke that DocGo was looking to springboard the New York City contract into a $4 billion federal gig, with CEO Anthony Capone boasting that the emergency deal gave the company “credibility” on a larger scale.
Lander cited Capone’s comments in his rejection, including the CEO’s “‘high degree of confidence’” that the migrant crisis will buoy future revenues.
“Rather, the C.E.O. seems eager to capitalize on the fact that the longer asylum seekers remain in their care, the more the company’s revenues will grow under this contract,” Lander admonished.
While Mayor Eric Adams can override Lander’s decision and approve the contract, the comptroller’s rejection will likely block City Hall from paying DocGo for any of the work completed as part of the contract, the New York Times explained.
The city housing agency can resubmit a less expensive version of the contract for a second look, Lander explained.
“It’s the first emergency contract we’ve declined to approve out of 300 submitted to our office,” Lander said in an interview with the outlet.
“With nearly 60,000 people currently in the city’s care and thousands more coming every month, we are doing everything we can to stop families from being forced to sleep on the streets, and we are hopeful our partners in the comptroller’s office will work with us toward that goal,” mayoral spokesperson Charles Kretchmer Lutvak told The Times.
The comptroller actually approved the DocGo deal in July, Lutvak argued.
Lander, however, countered that his office only approved the use of emergency declaration and that the contract still needed formal oversight.
In addition to a probe by Attorney General Letitia James, DocGo is also under scrutiny from Gov. Kathy Hochul after a review found that the company used unlicensed security guards at city migrant shelters.
DocGo’s contract with the city took effect on May 5, after Mayor Adams used the emergency order to eschew the bidding phase, The Times reported.
Lander has allegedly been trying to obtain the details of the agreement since then, and only just got access to the contract on Aug 16, the outlet said.
Thus far, he noted, the city has only pledged about $15.3 of its budget to pay DocGo’s invoices, despite racking up debts of over $70 million.
The paperwork also failed to back up claims that the city “exhausted” its efforts to find an alternative contractor who could do the work without a cash advance, Lander reprimanded.
The documents also revealed “contradictory statements” about DocGo’s ability to provide the necessary services, he added.
DocGo did not immediately respond to The Post’s request for comment.