(WNY News Now) – Albany – A recent follow-up audit by the Office of General Services (OGS) shows notable progress in managing construction contracts, though some issues linger.
The New York State Office of General Services (OGS) has made significant improvements in monitoring construction management contracts, following recommendations from an initial 2021 audit. The follow-up audit, issued on September 6, 2024, assessed OGS’ efforts to address areas of concern highlighted in the initial report. Of the four recommendations given, three have been fully implemented, while one remains partially addressed.
The 2021 audit found that while OGS generally adhered to contract terms and requirements, there were lapses in oversight, particularly concerning the use of Minority- and Women-Owned Business Enterprises (MWBE). In three of five audited projects, State-certified women-owned business enterprises (WBEs) subcontracted all services to non-MWBE firms, undermining the program’s goal of providing meaningful participation. This led to improperly claimed MWBE credits amounting to $207,316.
Additionally, concerns were raised about the evaluation process for a $1.8 million construction management contract, where one bidder’s proposal failed to meet the requirements yet received an unreflective scoring from OGS. Despite these issues, the follow-up report commended OGS for making notable improvements in contract monitoring.
With 3,302 ongoing construction contracts valued at $3.7 billion and 29 active construction management contracts worth $418 million, the oversight of these agreements is vital. OGS uses a combination of in-house staff and external consultants for construction management, ensuring projects meet expectations for schedule, cost, quality, and safety. When outsourcing, OGS follows a competitive bidding process, assessing bidders on experience, personnel, and MWBE participation goals.
While OGS has successfully addressed most of the audit’s recommendations, the agency has been asked to provide further information within 30 days on how it plans to resolve the remaining issues.
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