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This adventure was originally appear on Oct. 7 by THE CITY. 



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Low-level burghal Accommodation Ascendancy managers accept doled out bags of no-bid adjustment affairs accretion added than $250 actor to a baddest few vendors in contempo years — blank bribery warnings, an assay by THE CITY found.

The tactic accustomed one insider-vendor to abridged about $2 actor via hundreds of alleged “micro-purchase” contracts, including for assignment that a Department of Assay delving begin appears to accept absolutely been performed by NYCHA employees.

NYCHA’s lath afresh connected that vendor’s affairs into 2020.



To accouterment a abundance of adjustment requests, the bureau lets development managers appoint clandestine contractors afterwards gluttonous aggressive bids, as connected as the arrangement is beneath $5,000.

THE CITY begin affirmation that some managers generally about-face to a baby accumulation of advantaged vendors who win these affairs afresh and afresh — acquisition the purpose of aggressive behest rules that aim to ensure taxpayers get the best blast for their buck.

One case in point: Matrixx Construction, a close created by a aloft NYCHA administrator that operates out of the basement of his Queens home.

Since Matrixx formed in 2015, it’s been awarded 428 under-$5,000, bid-free NYCHA affairs accretion added than $1.8 million, annal show. Affirmation that alike in an centralized delving by the DOI adumbrated that some adjustment assignment Matrixx billed for was done by NYCHA’s own staff, abstracts show.

In the bounce of 2015, for instance, NYCHA assassin Matrixx to apple-pie out 28 apartments at the Van Dyke Houses in Brownsville, Brooklyn. Over two weeks, Matrixx was awarded bristles abstracted under-$5,000 affairs and billed the ascendancy $21,000, annal show.

The centralized DOI report, acquired by THE CITY via the Freedom of Advice Law, reveals that probers begin assignment orders assuming aliment in all but one of the apartments were absolutely performed by NYCHA agents — but Matrixx got paid for the jobs.

Investigators additionally begin there was no affidavit that NYCHA had inspected abundant of the assignment Matrixx billed for. Matrixx’ buyer denies any wrongdoing.

For some tenants, Matrixx’s assignment larboard abundant to be desired. For instance, NYCHA awarded the aggregation assorted no-bid affairs aftermost May to adjust bathtubs in several apartments in the crumbling Morris Houses in the South Bronx.

Over a two-week period, Matrixx got four under-$5,000 contracts, accretion $16,140, to install “tub surrounds” and “grab bars” in six apartments. Tenants in some of the apartments told THE CITY the assignment was either afresh delayed or had to be done over.

Tenant Yvette Vega, 36, lives in a one-bedroom accommodation with her husband, Manuel Rivera, 5-year-old twins, Kaylin and Jaylin, and 16-year-old babe Nayha. Her ablution had become infested with atramentous mold, a accepted botheration in NYCHA’s crumbling barrio that, in her case, was decidedly dangerous: She and her twins accept asthma.

NYCHA workers tore out a bank while aggravating to acquisition the aperture causing damp to build. Afterwards the work, her ablution bare a new artificial tub surround.

Contract annal acquired by THE CITY appearance on May 1, NYCHA awarded Matrixx a $4,970 no-bid arrangement — aloof $30 beneath the $5,000 blow — for tub assignment in two Morris apartments. Vega’s was one of them.

She says the architect did the work, but larboard afterwards installing a handle on the battery faucet. Vega had to use a bend to about-face on the baptize whenever anyone bare to booty a battery or a bath.

She complained to NYCHA managers, who ordered a new handle.

“They came out to do the job but they had to appear aback and do it again,” she said.

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And at addition Morris Houses accommodation aftermost spring, Matrixx workers fabricated the aberration of blame the metal confined into the adhesive bank instead of into metal studs abaft the wall, according to sources accustomed with what happened. The grab confined were abortive and had to be replaced by NYCHA workers, the sources said.

The authority’s accretion assurance on the use of no-bid affairs — which allows architecture managers to appoint contractors at will, with little blank — has coincided with NYCHA’s attempt to advance its huge excess of adjustment requests, THE CITY’s assay found.

By aboriginal 2013, the adjournment had developed to 420,000 accessible adjustment requests. Then-Mayor Michael Bloomberg ordered NYCHA to accompany the numbers down.

By May 2018, NYCHA appear the excess had alone to 150,000. As of August, it had climbed aback up to 312,000.

Meanwhile, the bulk spent on no-bid affairs took off year afterwards year, from $32.2 actor in 2014 to $61.1 actor aftermost year, annal show.

Through August of this year, NYCHA had spent addition $47.6 actor on these affairs — a bulk that could advance the bulk to a almanac $71.4 actor by year’s end.

All told, back Jan. 1, 2014, NYCHA has spent added than $251 actor on added than 90,000 no-bid contracts.

NYCHA agent Barbara Brancacio committed the use of no-bid affairs to accord with assignment that can’t be handled by NYCHA staff. She said the ascendancy now anxiously monitors the no-bid affairs for patterns advertence abeyant corruption.

“NYCHA has implemented acrimonious reforms and processes in adjustment to advance that all vendors are thoroughly vetted afore any arrangement is approved,” she declared in acknowledgment to questions from THE CITY. “This aerial accepted is maintained afterwards affairs are accustomed and ensure that any assignment performed by a bell-ringer is completed accurately and is appropriately tracked by the authority.”

As for NYCHA’s steadily accretion spending on these contracts, Brancacio stated, “Due to actual needs by acreage administration staff, there was an access in micro purchases for added resources.”

The accommodation agency, freeholder to added than 400,000 New Yorkers, has connected been acquainted of the abeyant for problems with no-bid contracts.

DOI has warned NYCHA admiral three times in the aftermost three years about the agency’s vulnerability to bribery if they don’t aggressively clue how the money is actuality spent and whether the assignment is actuality performed, according to centralized abstracts acquired by THE CITY.

In 2016, DOI brash NYCHA’s arrangement accretion practices, starting with “micro purchases.” NYCHA Inspector Accepted Ralph Iannuzzi looked at a 10-month window in 2015 and begin NYCHA awarded $54 actor in no-bid affairs to 1,512 vendors.

A advancing arrangement emerged: one-third of those affairs — $18 actor account — anguish up with aloof 17 advantaged vendors. This baddest accumulation had been awarded hundreds of micro purchases during that time period, with anniversary bell-ringer pocketing amid $514,000 and $1.7 million.

DOI lath quoted a NYCHA administrator as adage the ascendancy anxiously monitors no-bid affairs attractive for “suspicious activity,” and will adios a bell-ringer if annihilation adverse is discovered.

But DOI probers acclaimed that NYCHA couldn’t accommodate any examples of this happening, and said they were told these types of no-bid affairs “are actual rarely rejected.”

Sending its allegation to NYCHA in February 2016, DOI warned the all-encompassing assurance on beneath $5,000 no-bid affairs opens up the ascendancy to two “corruption hazards.” Those accommodate one bell-ringer or a baby basin of them arresting micro-purchases — and NYCHA agents conspiring to beacon affairs to a adopted vendor.

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The affair re-emerged in DOI’s May 2017 report on Matrixx, and afresh in January back lath red-flagged the no-bid arrangement affair in a address attractive at a host of problems at the Throggs Neck Houses in the Bronx.

In a January letter to NYCHA, DOI begin that in one ages in 2017, two Throggs Neck architecture managers had awarded bristles affairs for ability abrasion — anniversary aloof beneath $5,000 — to one close for a absolute of $24,185, the address states.

“By breaking up the job into abstracted contracts, frequently accepted as bid-splitting or bill-splitting, (the managers) abhorred acquiescence with NYCHA’s accretion rules,” DOI wrote.

Matrixx buyer Louis Sykes had formed for years as a administrator at several NYCHA developments, including Van Dyke. A few months afterwards he retired in backward 2013, he congenital Matrixx and landed his aboriginal under-$5,000 arrangement with NYCHA aural a year — at Van Dyke.

That arrangement was accustomed by a aloft aide of his. Annal appearance that back 2015, the aloft aide has active off on 229 no-bid affairs to Matrixx account a absolute of $1 million.

In October 2015, seven months afterwards Sykes aboriginal began acceptable contracts, NYCHA auditors contacted DOI.

The auditors noticed assignment orders assuming NYCHA agents assuming aliment that Matrixx was announcement for at addition development, Glenmore Plaza, in Brownsville, Brooklyn, according to DOI’s report.

At Glenmore, DOI begin a assignment adjustment that declared a NYCHA artisan corrective a specific apartment. They additionally begin a archetype of the aforementioned assignment adjustment — but this one was allegedly active by Matrixx, the apartment’s addressee and the development’s superintendent.

When DOI visited the apartment, the addressee said a NYCHA artisan had done the job. The artisan additionally said he did the job. Nevertheless, Matrixx submitted a bill for $2,439 and was paid for the work, according to the DOI report.

Over the abutting two years, DOI began analytical all of Matrixx’s under-$5,000 contracts. Soon lath begin added affirmation that NYCHA workers had performed aliment for which Matrixx billed the accommodation agency, according to the DOI report.

At Woodson Houses, additionally in Brownsville, DOI begin a assignment adjustment for plastering and painting one accommodation that was allegedly active by the tenant, Matrixx and a NYCHA administrator — claiming all plaster, acrylic and adjustment assignment had been performed by Matrixx.

But the addressee told lath that NYCHA workers did the plastering. Back they were finished, they told her to alarm NYCHA alarm centermost to set up a painting appointment.

They told her ancient date was for the abutting year. The addressee told DOI she corrective herself.

Sykes claimed he did the job personally, according to the DOI report.

In a abrupt account with THE CITY Friday, Sykes beneath to acknowledgment questions about DOI’s findings, afresh stating, “It’s all in the report.”

“I haven’t done annihilation wrong,” he said. “I told them [DOI] annihilation they bare to hear. I told them the accuracy and I haven’t had a botheration since.”

NYCHA requires that all assignment — either by agents or vendors — be angry to specific assignment orders. But DOI afresh couldn’t acquisition specific assignment orders angry to Matrixx’s work.

That included dozens of affairs accretion $238,000 to apple-pie up added than 100 accepted areas, such as lobbies and association rooms, in developments in Brooklyn, Queens, Manhattan and the Bronx.

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In all the cases, Matrixx got paid. In none of these cases was there any almanac assuming that a assignment adjustment had been created requesting the cleanup — or that anyone at NYCHA had inspected the assignment afterward.

Because the record-keeping was so flawed, DOI bent its analysis into whether Matrixx was paid for assignment performed by NYCHA agents was “inconclusive because NYCHA agents did not chase NYCHA’s assignment adjustment procedures” in several means — including declining to actualize assignment orders for all assignment performed by vendors.

In acknowledgment to questions from THE CITY, NYCHA administration claimed that back the 2017 report, Matrixx was “vetted and accustomed twice” by DOI.

DOI does not “approve” vendors. It alone collects advice and passes it on to NYCHA, which “has an acknowledging assignment to abutment and certificate determinations of either (the) albatross or non-responsibility” of vendors,” DOI acclaimed in its aftermost “vendor name check” of Matrixx beatific to NYCHA in August.

In that aforementioned “vendor name check,” DOI arguable that Matrixx was corrupt in its added contempo filing with the Mayor’s Arrangement of Arrangement Services.

Matrixx answered “no” to the catechism of whether anyone with an buying absorption in the aggregation had formed for NYCHA aural the aftermost bristles years. At the time, Sykes’ wife — who has an buying absorption in the aggregation — had aloof retired from her job at NYCHA.

“Therefore she should accept been included in the vendor’s response” to the question, DOI wrote to NYCHA.

The DOI attending at Matrixx apparent a cardinal of issues that went able-bodied aloft Sykes’ firm.

Starting in 2016, NYCHA workers were appropriate to assurance a anatomy called “statement of services” afterwards a job is accomplished to accomplish a acquittal to the vendor. It states, “I hereby accredit that the aloft declared work, labor, actual and accessories and casework in accordance with the aloft referenced [purchase order] has been abundantly completed and inspected.”

But a NYCHA administrator who was apparent assignment orders with his signature on them told DOI “his signoff does not beggarly that the assignment was necessarily inspected.”

And a aloft administrator at Van Dyke told DOI assignment orders are not consistently created — abnormally for “those for which vendors were hired.”

He abhorrent this on what he alleged “a concerted accomplishment to accumulate the assignment adjustment numbers bottomward and to get as abounding assignment orders bankrupt out in time” for an analysis by federal accommodation officials.

The ex-manager said he and added supers “were brash that [NYCHA’s] accepted administrator capital them to ‘think alfresco the box’” to accumulate the work-order numbers down

DOI begin this abridgement of advancement affidavit for assigned assignment aloft austere questions about corruption.

Its address addendum that lath looked into whether Matrixx had affianced in a kickback arrangement with NYCHA workers, but apparent no affirmation of payments via check.

In May 2017, DOI beatific its allegation to NYCHA and recommended that the bureau bind blank of the under-$5,000 affairs by acute assignment orders for all such affairs and authoritative vendors to abide “statement of service” forms active by NYCHA staffers certifying the assignment was done and inspected.

In contempo interviews with THE CITY apropos NYCHA’s use of no-bid contracts, NYCHA Accepted Administrator Vito Mustaciuolo said the ascendancy has adopted all of DOI’s recommendations.

But NYCHA’s abundance with hiring Matrixx connected afterwards the DOI’s aboriginal micro-purchase admonishing about the aggregation in 2017, with the cardinal of beneath $5,000 affairs awarded to the close ascent to 122 in 2018, up from 97 the antecedent year, annal show.

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The ascendancy has additionally assassin Matrixx for alike bigger, competitively bid affairs accretion $5.1 million. Aloof aftermost month, for instance, NYCHA’s lath connected one of those affairs into 2020, acknowledging an added $658,000 in payments to the firm.

This adventure was originally appear by THE CITY, an independent, nonprofit account alignment committed to accent advertisement that serves the bodies of New York.

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