State University of New York at Binghamton

Otis Elevator – Maintenance

Our Office 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. The objective of our examination was to determine if the University received elevator services in accordance with the terms and conditions of Contract C080213. We found the University’s Assistant Director of Operations allowed Otis to substitute the preventive maintenance schedule required by the contract with a preventive maintenance schedule determined by Otis without the knowledge or consent of the University’s fiscal management staff. In addition, Otis refused to provide the University with the substituted schedule, claiming the information is proprietary. As a result, University officials cannot determine (i) if the preventive maintenance services Otis is providing is comparable to the preventive maintenance services required by the contract, (ii) if they are paying a reasonable price for preventive maintenance, or (iii) if they are receiving sufficient preventive maintenance to keep the elevators in optimal working condition. University officials generally agree with our recommendations and are working to recover overpayments from Otis.

For a complete copy of Report 2010-0391, click here.