New York City is incurring significantly higher costs for contracted Laundry Services at certain migrant shelters compared to traditional homeless shelters. This discrepancy was revealed in a review conducted by Gothamist, which examined three contracts awarded through the city’s emergency no-bid contracting process.

However, after more than a year of grappling with the migrant crisis, Mayor Eric Adams’ use of emergency contracts is facing scrutiny. The City Council is scheduled to conduct a hearing addressing migrant-related expenses and the city’s emergency contracting process.

The elevated costs highlight the financial implications of resorting to emergency procurement procedures during crises, such as the COVID-19 pandemic and the ongoing influx of migrants into the city’s shelter system, which now accommodates around 60,000 migrants, according to recent City Hall data.

City Comptroller Brad Lander recently raised concerns and threatened to restrict the mayor’s emergency contracting authority due to issues discovered in a $432 million contract with DocGo, a medical services firm under investigation for potential misconduct and alleged mistreatment of migrants.

Members of the City Council are also examining the costs associated with the migrant crisis, which has prompted the mayor to propose significant budget cuts.

Gale Brewer, a Manhattan city councilmember who chairs the oversight and investigations committee, questioned when the city intends to conclude its reliance on emergency contracts. She expressed apprehension that excessive reliance on contractors would impede city agencies’ ability to manage the crisis independently once the contracts expire.

It is worth noting that New York City has a history of contracting Laundry services for shelters, which are obligated to supply residents with clean linens and towels.

According to the contracts, DocGo charges $1.50 per pound, HappyNest charges $43 per bag (with a maximum weight of 27 pounds), equivalent to $1.60 per pound, and Garner charges the highest rate at $3 per pound.

All three prices significantly exceeded the cost of a non-emergency laundry contract obtained by Gothamist between the city’s Department of Homeless Services and Sun International Trading, where the city pays 99 cents per pound for laundry services at various shelter locations.

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