Office of General Services

Elevator Maintenance Services

We examined select payments the Office of General Services (OGS) made to Schindler Elevator Corporation (Schindler) for equipment preventive maintenance services provided under contract CMU60AG for the period September 1, 2010 through February 28, 2011. We found Schindler did not repair 32 maintenance deficiencies cited by a third-party inspector within 30 working days, as required by the contract. These deficiencies were not repaired for at least five months. We also found OGS paid Schindler $6,797 for 24 instances of preventive maintenance services Schindler may not have performed.

We found the OGS Facility Manager, who is responsible for ensuring Schindler complies with the terms and conditions of the contract and for approving Schindler invoices for payment, does not have the knowledge, skills or ability to carry out those responsibilities. As a result, OGS: (i) did not receive all of the repairs required by the contract, (ii) does not know if the replacement parts Schindler installed when performing maintenance services met contract specifications, and (iii) may have paid for services not performed.

We also noted OGS did not assess Schindler $201,900 in liquidated damages for failing to repair equipment deficiencies within 30 days, as allowed under the contract, and did not ensure Schindler maintained the level of Commercial General Liability Insurance coverage required by the contract. Finally, we found Schindler underpaid its employees $623 by not paying its employees the correct prevailing wage rate for overtime and holiday hours worked.

For a complete copy of Report 2011-0005, click here.