Department of Environmental Conservation
Administration of Selected Types of Contracts
The Department administers several types of contracts. We examined the administration of three types of contracts: (1) standby contracts for cleaning up spills of petroleum and other hazardous materials, (2) contracts reimbursing municipalities for performing such functions as closing landfills and cleaning up hazardous waste sites, and (3) legislative grants for small environmental projects.
We found that the Department could significantly improve the administration of these contracts. For example, the Department did not adequately review the invoices submitted by standby contractors. Our review of these invoices identified several instances of duplicate billing, incorrect charges, unsupported charges and questionable charges. We determined that the Department was overbilled by one contractor by about $133,000 on just two contracts. We also identified weaknesses in Department procedures for ensuring that legislative grants were spent for authorized purposes only.