PEF seeks investigation into DOT spending

PEF seeks investigation into DOT spending

Story and photos by DEBORAH A. MILES
PEF called on the state Inspector General and Legislature to investigate spending at the state Department of Transportation at a press conference June 7 in Albany.

PEF President Ken Brynien said DOT consultants failed to account for more than $250 million of their expenditures in state fiscal year 2008-09. DOT also increased consultant spending by $9 million last year and $79 million since 2004.

“The state needs to do a number of things to fix this situation,” Brynien told reporters. “Consultants should disclose specific costs associated with contracts, such as engineering-related expenditures, project design, and bridge and construction inspection. More than half of DOT consultant engineering expenditures in the last fiscal year were simply not disclosed in reports required under the Contract Disclosure Law.”

Brynien said the state also should investigate how former, high-level DOT managers left their positions and now work as consultants for DOT.

“There seems to be a revolving door at DOT. We need an investigation to determine whether this situation affect’s DOT’s decisions to contract out engineering work. We don’t know if this violates any ethics laws, but it should be investigated,” Brynien said.

On the weekend of June 5, the engineering firm hired for the $42 million Exit 6 bridge replacement project on I-87 in Latham added four more consultants to cover work originally scheduled to be done by two state employees.

“Gov. David Paterson’s new policy eliminates most state-employee overtime, so the state will spend more money on higher-priced consultants. It doesn’t make any sense. State employees are qualified to do the work during the week, yet the same work is given to costly consultants on weekends. Doesn’t the governor realize DOT could save up to $84.3 million annually by replacing most of its engineering consultants with state employees? It’s the same work, you don’t have to spend twice the price,” Brynien said.

Being responsible
State Senate Deputy Majority Leader Jeff Klein also spoke at the press conference. He chairs the Senate Task Force on Government Efficiency.

“PEF is being responsible and I’m very proud to be standing here,” Klein said. “The answer to saving the state money is not in layoffs or furloughs. There is a lot of work that should be done by state employees. The list of wasteful spending by DOT goes on and on.

“I’m also very interested to review what PEF uncovered about DOT entering into contracts that really aren’t necessary,” Klein said.

PEF is encouraging passage of the cost-benefit bill (A9934/S7011) introduced by Klein and state Assembly Member Susan John. The bill would require state agencies to perform a cost-benefit analysis prior to contracting out for consultant services in excess of $500,000 annually.

Digging deeper
Brynien wrote a letter to State Inspector General Joseph Fisch saying PEF does not have access to the personnel, contracting and e-mail records necessary to determine the number of high-level DOT managers who now work with engineering firms that have contracts with DOT, and asked Fisch to investigate.

The letter included a list of individuals, such as a former DOT regional director who went on to work for Clough Harbour and Associates, a consulting firm with nearly $59 million in DOT contracts since 1997.
Spectra Engineering, Architecture and Surveying PC employed a former DOT commissioner, deputy commissioner and chief engineer. It entered into contracts with the state worth more than $4.5 million.

Wasting millions everywhere
PEF’s examination of DOT consultant engineering contracts shows DOT wastes millions of dollars in every region of the state.

In central New York, civil engineering for design services was billed at $97.62 per-hour and totaled $304,000. PEF estimated DOT engineers could have done the same work for $155,000.

Another design service job in western New York cost $302,000 and DOT engineers could have completed the project for $158,000.

“These are just a couple of examples of ways the state can save enough to balance a fair budget,” Brynien said. “The state has a plan that should be accelerated to reduce its reliance on information technology consultants. It has no plan to reduce its reliance on engineering consultants and bridge inspectors. If it did, savings could occur across the state.