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DocGo’s successor, a New York migrant entrepreneur who didn’t receive an offer, took in $450 million in taxpayer money

DocGo’s successor, a New York migrant entrepreneur who didn’t receive an offer, took in 0 million in taxpayer money

A disaster response company that replaced the controversial DocGo as New York City’s migrant services provider could cost taxpayers more than $450 million last year and counting, The Post has learned.

City Councilman Justin Brannan (D-Brooklyn) called on city and state auditors to investigate Garner Environmental Services’ contract in a scathing letter Thursday exclusively obtained by The Post.

Garner previously signed a $30 million emergency services standby contract with the city. When City Hall ended its $432 million no-bid contract with DocGo in May after months of backlash, it handed the troubled company’s responsibility for housing the city’s tens of thousands of migrants to Garner.

City Councilman Justin Brannan sent a scathing letter to city and state auditors urging them to investigate Garner Environmental Services. Emil Cohen/NYC Council Media Department

But Brannan, the City Council Finance Committee chairman who is running for city comptroller, argued that Garner is expected to make nearly $457 million, according to city records — more than DocGo’s widely criticized $432 million contract – and without any meaningful scrutiny and review having taken place.

“When DocGo’s contract with NYC ended, the mayor’s office projected that Garner would save $10 less per person per night than DocGo by managing the city’s asylum seeker support services,” his letter said.

“However, given the astronomical 15-fold inflation in contract value, it is difficult to imagine how these savings will be passed on to New Yorkers.”

Garner representatives said the company has not yet received the $457 million put together by Brannan and City Records.

“Garner is proud to offer New York City taxpayers more cost-effective services compared to previous providers addressing the refugee crisis,” Todd Riddle, CEO of Garner Environmental Services, said in a statement.

“We value our long-standing, two-decade partnership with the city and remain committed to delivering reliable and efficient solutions during this critical time.”

DocGo’s problems were a thorn in the side of Mayor Eric Adams as his administration struggled with the first waves of 200,000 migrants arriving in New York City starting in 2022.

The city had hired DocGo, a company that offered COVID testing, to provide shelter, food and other services to migrants under a $432 million emergency contract in May 2023.

But the major contract proved difficult, aside from the fact that it was awarded without the typical bidding process that most government contracts go through.

DocGo’s tenure as the city’s migrant service provider was as controversial as it was expensive. Robert Miller
Mayor Eric Adams has witnessed the arrival of more than 200,000 migrants in New York City since 2022. AP

The company came under fire for using unlicensed security guards in city refugee shelters, throwing away thousands of uneaten meals every day and alleging costly mismanagement.

Ultimately, Adams did not renew the one-year contract with DocGo; instead, city officials transferred responsibility to Garner, a Texas-based emergency response company that, according to its representatives, has provided emergency services to New York City since 9/11.

City officials did this under a pre-existing contract between Garner and the Department of Citywide Administrative Services, Brannan’s letter said.

The $30 million agreement served as a “parent contract” from which the city awarded another $426 million in direct contracts, essentially pay-as-you-go, to agencies that handle migrant housing and other needs.

A recent direct order came on Oct. 7: The city allocated $3.2 million for “emergency housing” at the humanitarian migrant shelter at 455 Jefferson St. in Brooklyn, records show.

Garner is one of several companies providing migrant services to the city, and the direct contracts cited in Brannan’s letter include existing projects prior to DocGo’s transition.

Brannan claims Garner made more than $450 million on a $30 million contract. Garner Environmental Services

Brannan claims Garner’s behavior toward the city was “deeply alarming.”

In his letter, which references a recent audit by city Comptroller Brad Lander, Garner argues that he “exploited” Health & Hospitals by causing the public hospital system to pay more than 117 U.S $79 an hour for security guards, while another city agency would be charged just $79 an hour under the same contract.

Garner also charged more than $130 an hour for managers at migrant shelters, well above DocGo’s rate of $88.33, Brannan’s letter said.

“While it is undoubtedly the Adams administration’s fault for not coordinating negotiations more aggressively, Garner’s complicity in plundering an agency for significantly greater profits is unacceptable,” Brannan charged in the letter.

Garner representatives said the company plans to respond more fully to the details in Brannan’s letter.

City Hall officials referred the comment to the Department of Citywide Administrative Services, where representatives said the Garner contract was part of a decades-old agreement to deal with emergencies.

Brannan’s letter, addressed to Lander and state Comptroller Tom DiNapoli, notes that Garner also has an $800 million contract with New York State that has not been subject to a preliminary audit.