We are encountering widespread state fraud here in NY and we are pretty sure that if it is happening in NYS, it is happening elsewhere. We have a whistleblower action of our own whereby NYS is not following procurement law and is allowing no-bid contracts from preferred vendors (either paybacks, kickbacks or vendors that the state has an obligation to fund i.e. charities, not for profits, healthcare, universities) without any oversight to ensure that the bid is at market rate or competitive with industry standards. The no-bid contracts are awarded at supracompetitive prices of multiple times market prices.

We have contacted the NYS inspector general and comptroller’s office as well as Federal oversight agencies and told them that NYS is not putting contracts reimbursed by Federal programs including block grants (i.e. TANF, Title XX Social Services Block Grant), Medicare, Medicaid, iv-e etc. out for bid. The NYS Inspector General’s office replied that contracts reimbursed by Federal money were not required to be put out for bid and no price comparisons need to be made.

This statement and NY policy is not in accordance with NYS law or OMB 87 which governs the provisions states must follow when receiving federal funds.

There has been a recent investigation into no bid contracts at NYC schools alone and there has been hundreds of millions of no-bid contracts issued.

We are a small business, we pay taxes and we find it very disturbing as a taxpayer that we have to pay for subsidizing these supracompetitive prices for products and services.

We want an investigation into NYS procurement process of contracts reimbursed by Federal monies.