A new report from the New York State Inspector General reveals major oversight failures in a $15 million consulting agreement involving the Department of Motor Vehicles during the COVID-19 pandemic.
Released earlier today, the report details how the state Division of the Budget (DOB) mismanaged its contract with Boston Consulting Group (BCG) to assist the DMV with reopening efforts and technology upgrades between August 2020 and August 2021.
“Best intentions cannot be a substitute for best practices,” said Inspector General Lucy Lang. “This report underscores the importance of clear interagency communication and defined roles when public funds are at stake.”
The investigation found that DOB initiated and managed the BCG-led projects without properly consulting DMV on project scope, deliverables, or funding expectations. Work began before final Statements of Work (SOWs) were executed, leading to confusion and incomplete oversight. The DMV ultimately ended its involvement with BCG after the third of five scheduled projects.
One critical failure was the lack of coordination on funding. According to the report, DMV was billed for work it believed would be covered by non-agency funds. Inadequate collaboration also left the DMV with limited ability to influence or evaluate the contractor’s output.
The Inspector General issued three key recommendations to improve contract oversight in the future:
- Designate a liaison between DOB and client agencies to ensure effective communication and project tracking.
- Require that SOWs be completed before any work begins.
- Clearly communicate financial responsibility to agencies at the outset of any project.
The report credits several members of the Inspector General’s staff with conducting the investigation and acknowledges the cooperation of both the DMV and DOB in addressing the findings.
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