LIU GREEN LIGHTS RESTRUCTUR
New York City Comptroller John C. Liu today registered a $95 million fixed-price contract for the Emergency Communications Transformation Program (ECTP). This $95 million contract replaces the prior contract request of $286 million.
In December, Comptroller Liu had rejected the $286 million contract because the bulk of the contract was allotted to unspecified ‘time and expense’ costs. This type of vague budgeting formula allows contractors to bill on an hourly basis and collect exorbitant fees.
Working together with City Hall, the Comptroller’s Office was able to change the contract to a fixed-price agreement for design work that is now tied to results. This represents the first of three phases City Hall has agreed to in order to allow for more cost oversight.
In addition to the changes in the contract structure, the Department of Information Technology and Telecommunications (DoITT) has also agreed to the following:
- Every request for payment or change order submitted to the Comptroller will be accompanied by a comparison between the budgeted amount and the revised estimate.
- DoITT will provide the Comptroller with a copy of the master schedule developed under the contract. The agency will provide updated schedules each time a request for payment or change order is sent to the Comptroller.
“ECTP was intended to improve public safety for New Yorkers,” said Comptroller Liu. “Current fiscal constraints compel tighter cost management. This restructured contract enables City Hall to achieve that intent, and to do so in a timely manner within our means.”
In December, Comptroller Liu had rejected the $286 million contract because the bulk of the contract was allotted to unspecified ‘time and expense’ costs. This type of vague budgeting formula allows contractors to bill on an hourly basis and collect exorbitant fees.
Working together with City Hall, the Comptroller’s Office was able to change the contract to a fixed-price agreement for design work that is now tied to results. This represents the first of three phases City Hall has agreed to in order to allow for more cost oversight.
In addition to the changes in the contract structure, the Department of Information Technology and Telecommunications (DoITT) has also agreed to the following:
- Every request for payment or change order submitted to the Comptroller will be accompanied by a comparison between the budgeted amount and the revised estimate.
- DoITT will provide the Comptroller with a copy of the master schedule developed under the contract. The agency will provide updated schedules each time a request for payment or change order is sent to the Comptroller.
“ECTP was intended to improve public safety for New Yorkers,” said Comptroller Liu. “Current fiscal constraints compel tighter cost management. This restructured contract enables City Hall to achieve that intent, and to do so in a timely manner within our means.”
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