Our office examined payments Queens College (College) made to Siemens Building Technologies, Inc. (Siemens) under contract NMP6011 for remedial and preventive maintenance on building management system equipment (equipment) manufactured by Siemens.1 These included all payments made for invoices covering services in calendar year 2008. Due to a weakness we identified in the payment process during our examination, we expanded our scope to include certain payments covering the period October 1, 2004 to September 30, 2007. The objectives of our examination were to determine if payments made were appropriate and in accordance with contract terms. We found Queens College did not amend its contract with Siemens to reflect any changes in equipment on the campus and has not adjusted the contract pricing accordingly. In addition, from October 1, 2004 to September 30, 2007 Siemens was paid $150,600 for a warrantee on equipment when the College already paid Siemens for all preventive and remedial maintenance on this equipment through the contractual monthly maintenance fees. We also found that Siemens did not provide all the preventive maintenance required under the contract and may be able to save as much as $63,517 annually by obtaining future maintenance services on a time and materials basis. The College generally agreed with our recommendations and will endeavor to implement those actions that will provide the College with an enhanced ability to monitor contract performance and compliance.
For a complete copy of Report 2008-0309, click here.