State Replaces Company Managing Sandy Rebuilding Grants
Reprinted from Long Island Newsday
ALBANY, NY, April 7, 2014 – The Cuomo administration has hired a new company to help get superstorm Sandy rebuilding grants to New Yorkers, a state official confirmed Monday.
IEM, a North Carolina-based security consulting firm will supplant ProSource Technologies of Minneapolis as the case manager for thousands of state residents looking for rebuilding aid. IEM will take over April 21 with a 15-month, $53 million contract, the official said.
The state originally hired ProSource for $13.4 million to coordinate a homeowner buyout program in Staten Island. Meanwhile, the administration began fielding bids for the lucrative job of managing its $1.7 billion Community Development Block Grant program over the summer. The bidding closed in August, but no contractor has been selected.
Newsday reported in December that, in the interim, the state had quadrupled payments to ProSource (to $55 million) and expanded its duties, raising concerns among some rivals looking to compete for the job.
IEM “came in with the best, most cost-effective bid,” a Cuomo official said.
ProSource had hired about 400 people to manage cases. The official said there were no planned layoffs and that IEM would give consideration to retaining people hired by ProSource.
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