By Michael V. Cusenza
The Adams administration’s “haphazard management” of an asylum seeker-services contract wasted millions of taxpayer dollars, according to the findings of an audit released Tuesday by City Comptroller Brad Lander.
In May 2023, the City gave an emergency $432 million no-bid contract to DocGo, Inc., a mobile medical services company that was hired to provide temporary housing and assistance for asylum seekers—“despite having zero experience with that,” Lander said.
Last September, Lander declined to approve the pact with DocGo, citing numerous concerns in a letter to City Department of Housing & Preservation Development Commissioner Adolfo Carrión Jr.
“The agency’s contract submission to our office fails to describe how the $432 million price tag was reached. There was little evidence to show that this company has the experience to provide the services it has been contracted for. Contradictory information was provided regarding their fiscal capacity and serious questions were raised about the integrity and responsibility of this vendor and their subcontractors,” Lander said. “After thorough review, we are returning the contract to HPD and encouraging them to reconsider whether this vendor is appropriate for the services described.”
However, Mayor Eric Adams and administration moved forward with the DocGo deal. Lander launched an investigation.
“Reviewing invoices and records, our auditors found a wide range of fiscal mismanagement and shoddy oversight—with each misstep revealing just how deeply the administration failed to vet the company or oversee its work,” said Lander, a 2025 mayoral candidate.
Lander listed “some of the most concerning findings” of the audit:
- Nearly 80 percent of the $13.8 million paid to DocGo for expenses incurred in May and June 2023 (the first two months of the contract) were inadequately supported or not allowed.
- DocGo overpaid security subcontractors by $2 million. This includes $583,274 in profit for security guards that were not authorized when the costs were incurred.
- DocGo flouted the rules to hire unauthorized subcontractors. DocGo only submitted 29 percent of its vendors for review as required, and HPD did not review and approve a single one.
- HPD failed to ensure DocGo staffed hotels with the number of caseworkers and social workers specified in the contract. This failure may have denied asylum seekers the services and casework they need to get work authorization, move out of shelter, and get on their feet, Lander said.
- DocGo skimmed $400,000 in overhead for almost 10,000 unused hotels rooms.
- 80 percent of the 189 hotel rooms auditors visited in New York City and upstate had at least one deficiency, and some posed serious health and safety hazards—from leaking roofs to mold and infestations.
“The fiscal mismanagement coupled with the hazardous conditions and lack of case management are a sign of both poor leadership—and cruelty. Thousands of asylum seekers traveled thousands of miles to seek safety and support and instead were met with inadequate services, confusion, and infestations,” Lander added. “These audit findings make me relieved that the Adams administration is finally winding down its dubious $432 million no-bid contract with DocGo.”
