Digital Gadgets, a company that has secured $637 million in contracts to provide COVID-19 tests while also under scrutiny for its owner’s involvement in Gov. They are suing the government, claiming they didn’t. Bidding on subsequent test orders.
In a lawsuit filed in Albany County Supreme Court, Digital Gadgets alleges that the State Department of Health violated state law when it advertised a request for bids to procure COVID-19 test kits, after which the company later accused the company of He issued an executive order when he protested the refusal. bid.
Digital Gadgets spokesperson John Gallagher said: Specifications published by the department. ”
Between December 2021 and March 2022, Digital Gadget has been contracted by states to provide approximately 52 million COVID-19 test kits as part of its efforts to combat the ommicron wave of viruses. rice field. New York Homeland Security and Emergency Services Commissioner Jackie Bray said these purchase orders were approved under Executive Order 11, a directive allowing states to bypass normal procurement procedures during the COVID-19 emergency. ran. These contracts cost the state about $637 million.
The Albany Times Union reported in July that around the same time the state was negotiating these deals, Hochul received $300,000 in donations to his re-election campaign from digital gadget owner Charlie Tebere and his family. Hochul denied knowing the Tebele family and said he was unaware of the details of Digital Gadgets’ purchase order.
The lawsuit alleges that during April, May and June, state officials, including Bray, negotiated another purchase order with Digital Gadgets. During these meetings, Charlie Tebere and his wife donated about $40,000 more to the governor’s campaign.
On July 12, the Ministry of Health issued an Invitation to Bid (IFB) that was “substantially identical” to the parameters negotiated between the digital gadget and the state, the company’s lawsuit alleges. doing. The IFB was posted a week before the Times Union published its first article on digital gadgets.
Later, Digital Gadgets and 119 other companies eventually placed bids under the IFB over the summer. At the same time, details of the relationship between the Hochul campaign and the Tebele family continued to emerge.
After the contract was rejected in August, Digital Gadgets asked Ministry of Health officials for a report explaining why the bid was rejected. Such debriefing was permitted based on his original IFB document. In a subsequent letter included in court filings, Digital Gadgets’ attorneys at the time noted that the Department of Health officials involved would file any protests against the bid ruling with the State Comptroller as per the normal procedure. You wrote that you said you need to submit.
“During my debriefing with the DOH on August 31, 2022, I did not say anything to Mr. Keef, which meant that the protest would be submitted directly to the OSC and not to the DOH internal bidding protest officer. She looked me in the eye and said yes I need to protest the bid [the state comptroller]Benjamin Neidl, Digital Gadgets’ attorney at the time, wrote:
Digital Gadgets appealed the bid to the Director of Contracts at the Board of Audit, who was told that the contract was in fact awarded pursuant to Executive Order 11, invalidating the procedure set out in the IFB.
After several letters exchanged between Digital Gadgets, the Inspector General’s office and officials from the Ministry of Health, the latter indicated that the original IFB was not being used to consider the bid.
In a letter to Digital Gadgets attorneys, DOH Procurement Manager Eryn Keefe said, “The Department of Defense is committed to ensuring that taxpayer funds are properly managed by ensuring that prices are kept from responsible and responsive bidders.” We have made our procurement public with due diligence in order to obtain relevant information.
When asked for comment, the Director’s Office referred the WSKG to the Ministry of Health.
“The DOH cannot comment due to pending lawsuits,” Department of Health spokesman Jeffrey Hammond wrote in response to questions from the WSKG.
Reviewing the Digital Gadgets legal complaint, Empire Center Senior Fellow for Health Policy Bill Hammond said the situation is complex, but political motivations may be influencing state decisions on IFBs. I said yes.
“The state seems to be acting a little crazy here,” Hammond said. No, I am purchasing under an urgent order. ”
The lawsuit is currently pending in the Albany County Supreme Court.