NYC’s screwup on car auction contract will cost taxpayers $6M: lawsuit


Major Apple taxpayers will be taken for a $6 million ride for the reason that the city illegally employed a new agency — which prices 60 p.c much more than its predecessor — to market surplus vehicles, in accordance to a new lawsuit.

Online auctioneer alleges that blunders by the Division of Citywide Administrative Expert services left them in the dim that products and services it supplied for almost 20 many years experienced been turned in excess of to a rival organization last year.

In December, DCAS replaced PropertyRoom and awarded rival Insurance coverage Auto Auctions Corp. a 5-calendar year $5.93 million contract.

Nevertheless, the match submitted in Manhattan Supreme Court contends the city will now be paying out an added $5.95 million around the duration of the agreement in “buyer’s premium” prices, since IAA’s rates for this charge are better than PropertyRoom’s.

In an April court affidavit, PropertyRoom CEO Aaron Thompson insisted the city will reduce added funds under the new contract because his firm’s web page reaches numerous additional potential consumers than his competitor.

“Less demand, and much less purchasers, success in reduce gross sales charges for auctioned residence, which effects in a lot less dollars returning to the town pursuing the sale,” he wrote.

Centered on a fleet reduction program approved by former Mayor Invoice de Blasio, the change to IAA will expense DCAS the excess $5.95 million about five years, the accommodate alleges.

PropertyRoom CEO Aaron Thompson insisted the city will lose more money under the new contract because his firm’s website reaches many more potential buyers.
PropertyRoom CEO Aaron Thompson insisted the metropolis will drop extra money beneath the new contract simply because his firm’s internet site reaches lots of much more likely purchasers.

On the other hand, Thompson explained to The Write-up he believes the IAA contract could possibly cost the town hundreds of thousands of pounds additional because Mayor Eric Adams has pledged to make much more cuts to the country’s major municipal fleet than what de Blasio proposed — all even though inheriting the IAA contract from the former administration.

“Mayor Adams should not use this misguided agreement for his fleet reduction program,” reported Thompson. “It’s a waste of taxpayer income.”

Adams solely advised The Post in January he wants to slash the fleet to a “bare bones minimum amount,” which involves dropping it to at minimum levels found all through Michael Bloomberg’s time as mayor nearly a ten years in the past, when it was beneath 26,000 autos.

city surplus vehicles
The go well with alleges the deal was illegally awarded.
surplus suit
Town lawyers have termed the go well with meritless.

Adams has now declared plans to slash 855 autos from the fleet of practically 30,000 in the course of the up coming fiscal 12 months commencing July 1.

The go well with alleges the agreement was illegally awarded and, consequently, should really be voided and rebid.

It accuses DCAS of botching general public notices by wrongly providing out 4 diverse PIN quantities for possible bidders to observe the deal, which was to start with marketed in 2019.

Usually, a solitary PIN is employed for every procurement. PropertyRoom alleges the confusion led it to believe DCAS was not right away going forward with a new pact — and that it would at minimum be temporarily retained as it has in previous many years.

Having said that, town lawyers claimed the lawsuit is meritless — especially since PropertyRoom under no circumstances submitted a bid.

“Their claims are baseless and we have moved to dismiss the circumstance,” a city Legislation Office spokesman claimed.

“How would the metropolis know that it would be paying a lot more if PropertyRoom never submitted a proposal? We stand by the contract system, which was proper and in compliance with all procurement legislation.”

Legal professionals for IAA did not return messages, but they submitted legal papers very last month seeking to dismiss the accommodate that insisted PropertyRoom’s allegations ended up meritless.


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