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Q&A
NYCHA's improved enforcement of financial penalties against underperforming contractors
1:48:39
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125 sec
Council Member Chris Banks inquires about NYCHA's improved enforcement of financial penalties against underperforming contractors. NYCHA officials outline several measures:
- Immediate notification to contractors when guards fail to show up or leave their posts
- Non-payment for services not rendered
- Enhanced liquidated damages clauses in new contracts
- Ability to discontinue relationships with vendors if deemed necessary
• These enforcement mechanisms have always been part of NYCHA's terms and conditions • NYCHA believes these tools are useful in correcting contractor behavior • Additional measures include vendor disqualification and strengthened vendor responsibility procedures
• The procurement department has instituted new procedures aimed at strengthening vendor responsibility and integrity
Chris Banks
1:48:39
I mean, we we I think it would be important to make sure that the the residents get justice.
1:48:45
And this was not only a security you know, a failure, but also these folks stole money from NYCHA and from the residents.
1:48:58
How has NYCHA improved its enforcement of financial penalties against the underperforming contractors at NYCHA?
Lauren Gray
1:49:08
So in these current contracts, we are currently anytime a guard fails to show up or is leaves its post, we immediately send them a notification letting them know that we are not going to be paying them from their services.
1:49:23
As part of the new contracts, and I can let Shin tell you a little bit more, I think there's more in terms of liquidated damages that we can go after.
Shin Kim
1:49:31
Yes, we have thank you for that question.
1:49:33
We have contractual remedies including liquidated damages that are built into the contract.
1:49:38
And NYCHA also has the infrastructure to discontinue relationships with the vendor if deemed necessary and appropriate.
1:49:48
So, yes.
Chris Banks
1:49:50
Are these new actions, these have always been on the books or tools used by the authority to go after these bad actors?
Shin Kim
1:50:00
Yes.
1:50:00
Thank you for the opportunity to clarify.
1:50:02
These have always been part of our terms and conditions, the ability to go after liquidated damages as well as contractually defaulting the contractor.
Chris Banks
1:50:11
Do you think they've been useful with helping to correct some of the behavior of these contractors?
Shin Kim
1:50:21
As a general statement from a procurement perspective, yes, we believe they are useful tools and the procurement department also outside of the DOI's recommendation have instituted vendor disqualification as well as vendor responsibility standard procedures aimed at really strengthening vendor responsibility and the integrity of our vendors.