Audit Report on the Department of Citywide Administrative Services’ Awarding and Monitoring of Its Emergency Contract with Best Buy Stores for WiFi Air Conditioning and Related Services

Executive Summary

This audit was conducted to determine whether the Department of Citywide Administrative Services (DCAS): (1) appropriately justified and awarded a WiFi air conditioning and related services contract to Best Buy Stores (Best Buy); (2) ensured that the air conditioning units were delivered and installed as intended; and (3) maintained sufficient controls over its vendor payments.

The mission of DCAS is to support the administrative operations of New York City (City) government. In furtherance of its mission, DCAS has established a centralized purchasing process through which it procures more than $1 billion in supplies and equipment each year on behalf of City agencies. In May 2020, in response to the COVID-19 pandemic, the Mayor announced the creation of the Get Cool NYC program through which the City planned to install as many as 74,000 air conditioners in the residences of low-income seniors to enable them to spend more time at home during the summer months and thereby limit the chances of their being exposed to COVID-19. The New York City Department of Emergency Management (NYCEM) was tasked to oversee the Get Cool NYC program. NYCEM requested DCAS’ assistance in procuring the air conditioners needed for this program.

On June 3, 2020, DCAS entered into a contract with Best Buy valued at up to $22,704,029 to provide up to 48,201 WiFi air conditioners and related installation services. On May 3, 2021, DCAS closed the contract after Best Buy had delivered and installed 39,419 air conditioners at a cost of $21,577,576.

Audit Findings and Conclusions

DCAS generally complied with the Mayor’s Office of Contract Services’ (MOCS’) guidance on COVID-19-related procurements and with its own COVID-19 procurement process when awarding the contract to Best Buy. DCAS also ensured that it obtained assurances from NYCEM that the air conditioning units had been properly delivered and installed, and that its corresponding payments to the vendor were consistent with the summary invoices and payment amount certifications provided by NYCEM. However, DCAS did not ensure that its understanding with NYCEM concerning the agencies’ respective roles in awarding the contract and in monitoring and paying the vendor was clearly formulated in a written agreement.

Audit Recommendation

The audit recommends that DCAS, when it assists another agency in awarding a contract and paying the vendor, clearly establish each agency’s roles and responsibilities in a Memorandum of Understanding (MOU) with the other agency.

Agency Response

In its response, DCAS agreed with the audit finding and recommendation.