We examined payments made by the State University of New York at Binghamton (University) to Otis Elevator (Otis) for services provided from July 1, 2009 through December 31, 2009 under Contract C080213. We found the University allowed Otis to substitute the preventive maintenance schedule required by the contract with a schedule determined by Otis without seeking to amend or rebid the contract. As a result, Otis only provided 18 percent of the weekly preventive maintenance required by the contract without a corresponding reduction in the cost for those services. In addition, Otis refused to provide the University with the substituted schedule. Therefore, the University cannot properly monitor the contract. University officials agreed with our findings. University officials stated they are holding Otis to the contract terms and conditions, and are determining the overpayments for services not performed.
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