Thursday, November 17, 2011

NYC City Council Passes Outsourcing Accountability Act, Awaits Bloomberg Consideration


Amid reports of massive fraud and waste surrounding New York City's policies privatizing everything from billing to traffic control, the City Council passed the Outsourcing Accountability Act. The Act requires a cost-benefit analysis ensuring that any outsourcing contract actually saves the city money. It also requires the city's agencies to publicly disclose plans to renew contracts or solicit private contractors and vendors one year before opening bidding. Mayor Bloomberg has opposed the bill, arguing that it will create excessive red tape that will slow down the city agencies' attempts to improve services and solve problems. The city's spending to private vendors and contractors has increased from $5.7 billion to $10.5 billion over only fifteen years. The Act will give New Yorkers a chance to ensure their tax dollars are not wasted through fraud or inefficiency by the private sector.

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