Special Report on the Department of Citywide Administrative Services’ COVID-19 Emergency Procurements

Audit Findings and Conclusion

The objective of this review was to determine whether the Department of Citywide Administrative Services’ (DCAS) COVID-19 emergency procurements during Fiscal Year 2020 were necessary and related to COVID-19, adequately documented, consistent with applicable procurement policies and procedures, and reasonable.

At the outset of the COVID-19 emergency, between March 1, 2020, and June 30, 2020, DCAS initiated procurements for goods and services with an initial value totaling $1.5 billion. We recognize the difficult and pressing circumstances in which the emergency procurement process for COVID-19 was established. Though my office found significant shortcomings, this report does not minimize DCAS’ accomplishments; rather, it is intended to serve as a guidepost to help DCAS and other agencies learn from past emergencies and apply lessons from the pandemic to future crises.

The review determined that DCAS generally maintained documents showing that emergency procurements related to COVID-19 were necessary to respond to the ongoing crisis. However, DCAS did not consistently ensure that it procured goods from responsible vendors, obtained or documented approvals from the prepayment committee, or maintained supporting documentation for procurements. Additionally, DCAS did not document analysis used to determine whether vendor prices were reasonable.

The review recommends that for future emergency procurements, DCAS ensure that staff perform and document responsibility reviews, document its price analyses, and maintain supporting documentation in procurement files and systems of record. Additionally, the review recommends that the City determine whether current procurement rules require amendment to permit advance payments as necessary, and if so, establish rules and protocols to mitigate risks.

Agency Response

DCAS did not agree with the report’s findings or recommendations. Nonetheless, DCAS stated that in the event of future emergency procurements, it will document background checks and vendor proposals, and follow guidance for advance payments.