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Senator Tim Kennedy and Assemblyman Sean Ryan want answers regarding NYSDMV contract

BY: Community Papers of WNY Staff | November 15, 2012

New York State Senator Tim Kennedy and Assemblyman Sean Ryan urged the New York State Department of Motor Vehicles (DMV) to explain why they have awarded a new contract to produce New York State driver’s licenses that will cost taxpayers an extra $38 million.

The DMV has tentativelyawarded a contract to CBN Secure Technology Inc. for $88.5 million, despite the fact that the current vendor for driver’s licenses, De La Rue North America Inc. came in with a bid of $50.5 million. Both bids met the necessary security requirements, and the new contract awarded to CBN Secure Technology Inc. does not appear to offer additional security features that could account for the higher cost, according to published reports.

“New York taxpayers deserve answers when it comes to decisions over how their hard-earned dollars are spent. That’s why the DMV needs to explain the reasons why they awarded this new contract at such a higher cost,” said Senator Kennedy. “State budgets have been fiscally strained, and our economy has been climbing up the road to recovery. The decision to spend an additional $38 million on producing driver’s licenses must be clarified and justified to taxpayers, when that money could have been invested in initiatives that would help put New Yorkers to work.”

“At a time when New York State is looking to save money wherever possible, I am shocked that the DMV would award a contract that costs taxpayers an extra $38 million,” said Assemblyman Ryan. “The company that has been making our licenses for the past 16 years meets all the necessary security requirements, and their bid came in at significantly less cost. The DMV needs to fully explain why they have come to this decision.”

In a letter sent to the DMV Wednesday, Kennedy and Ryan said they want answers regarding the $38 million increase in cost and the allegations made by other companies involved in this bidding process. If the allegations are proven legitimate, they are urging the DMV to rebid the contract.



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