Shelter Audit Finds Contract Mismanagement, Improper and Illegal Use of Emergency Procurements
Extreme Prices, Lacking Documentation, Lack of Oversight Flagged as Points
(BOSTON – MAY 20, 2025)— Right this moment, State Auditor Diana DiZoglio’s Workplace launched an audit report of the Government Workplace of Housing and Livable Communities (EOHLC), reviewing the interval from July 1, 2021, via June 30, 2024. The report particularly focuses on points pertaining to procurement and contracting with respect to the state’s emergency shelter system.
Among the many audit’s findings is that EOHLC didn’t adequately assess and act upon the elevated demand for shelter providers, leading to improper and illegal no-bid emergency procurements for meals and transportation providers. EOHLC bypassed established procurement procedures, leading to an absence of equity through aggressive bidding and an absence of transparency and accountability within the contracting course of.
The no-bid contracts resulted in unnecessarily excessive prices and inefficiencies. Furthermore, the length of the no-bid contracts was extreme. Non-compliance with correct procurement protocols hinders the integrity of the contracting course of and undermines the general public’s belief in authorities.
The audit notes there was lacking proof and inadequate documentation to help EOHLC’s determination to enter right into a no-bid contract with Spinelli Ravioli Manufacturing Firm, Inc. (Spinelli) and EOHLC didn’t take into account a chance to simply accept a flat charge with Spinelli for meals supply providers. EOHLC failed to offer ample oversight of its supply contract with Spinelli, leading to overpayments on 9.6% of deliveries. Overcharges resulted in EOHLC paying greater than the contracted charges for supply providers.
Furthermore, the audit discovered EOHLC violated a part of its contract with SKS Administration, Inc., which contracted with EOHLC to offer emergency shelters, by not approving in writing the usage of sure subcontractors. The dearth of documentation raises considerations relating to oversight of the subcontracting course of and in regards to the legality of the contract as a result of the phrases and situations have been being ignored. With out correct data, EOHLC can’t confirm whether or not providers have been supplied in keeping with contractual phrases, nor can it be sure that funds have been applicable and aligned with the agreed-upon budgets.
The audit additionally discovered there was lacking proof and inadequate documentation to help EOHLC’s determination to enter right into a no-bid contract with Mercedes Cab Firm / Pilgrim Transit. This emergency no-bid contract for transportation providers resulted in extreme prices. The dearth of aggressive bidding for this contract raises considerations about equity and inflated pricing, additional limiting the effectiveness of this association by way of cost-efficiency and transparency.
Moreover, the audit discovered EOHLC mismanaged a few of its contracts with several types of shelter suppliers – conventional shelters and accommodations/motels. Failure to adjust to contractual fee phrases constitutes monetary mismanagement. Such monetary situations impair EOHLC’s means to ship important providers, finally jeopardizing the welfare of the folks and communities it serves. EOHLC has a fiduciary obligation to make sure the accuracy and integrity of invoices for contracted providers.
Total, lots of the points raised on this report level to an absence of administrative oversight at EOHLC in the course of the emergency shelter disaster, creating an avoidable danger for the Commonwealth in responding to this and different emergencies.
“We hope, for the sake of historical past not repeating itself, particularly in areas such because the no-bid contracting course of, the place taxpayers have grown more and more pissed off and anxious with the looks of impropriety relating to how and why no-bid contracts have been awarded, that this Administration will embrace really helpful reforms and transfer away from its defensive posture,” stated Auditor DiZoglio. “This is a chance for the Administration to reevaluate the way it can and have to be a extra accountable steward of its important authorities throughout states of emergency. The audit shines a lightweight on the place efficiencies and enhancements must be applied to assist save taxpayer {dollars} and enhance public belief.”
