Mayor Adams’ administration calls for investigation into NYC helipad contract over allegations of conflict of interest

Aviation executive urges Mayor Adams’ administration to investigate concerns that a competitor has gained an unfair advantage by winning a lucrative helipad contract from the city’s economic development agency.

Adam Trenck, CEO of Thoroughbred Sea & Air, asked for an investigation into competitor Saker Aviation in a letter Wednesday to Kevin Kim, Adams’ Commissioner for Small Business Services. Both companies are bidding for the contract.

As the Daily News first reported last week, the city’s Economic Development Corporation’s decision to award a contract to operate the Pier 6 heliport in Manhattan with Saker created a conflict of interest because Saker chairman William Wachtel is a legal partner. with Morris Missry, EDC board member.

Helicopters arrive and depart at the helipad located on Pier 6 in Midtown Manhattan.

On September 20, 2022, Thoroughbred Sea & Air filed an application that would pay the city 34% of its gross revenue in helipad fees as a baseline, Trenck said. In November, Thoroughbred made a final offer slightly larger than the first, with a proposed base rate of 34.7%, according to a bid addendum reviewed by The News.

Saker, which has operated the heliport since 2008, offered a base fee of 36% in its final offer, 1.3% higher than Thoroughbred’s, according to a reward notice from EDC. It is not clear what base rate Saker offered in any previous versions of the application.

William Wachtel

Trenck stated in his letter that it was “impossible to imagine” Saker promoting its offering in this way “without any inside information given that for almost 15 years Saker has not paid more than 20% of gross revenue”, a reference to the commissions paid by the firm under previous contracts.

“Saker’s close association with the EDC board member, coupled with the price in Saker’s proposed helipad contract, warrants investigation and careful analysis,” Trenk wrote in the letter. “[Thoroughbred] concerned, among other things, [Thoroughbred’s] competitive information was shared with Saker during the procurement process.”

Trenck, who declined to comment other than his complaint, asked the Department of Small Business Services to investigate his allegations. The specific details of open tenders for city contracts must be kept confidential so that no party gains an unfair advantage by learning of their competitors’ bids.

But EDC, which was aware of Trenk’s correspondence, told The News on Thursday that it would conduct a “review” of his claims, citing a record of the procurement process.

EDC spokesman Jeff Holmes strongly denied Trenk’s allegations.

“It is disappointing that the Daily News is once again carrying water for a disgruntled company that failed to win a city contract and spreading baseless allegations about a rigorous selection process,” Holmes said. “We absolutely reject the false claim that confidential information from one submission was shared with another bidder.”

Saker CEO Sam Goldstein declined to comment. Wachtel told The News last week that Missri was “not involved in any way” with Saker.

Mayor Eric Adams

EDC’s Ethical Charter requires that members of the Board of Directors refuse to resolve any matter in which “personal and/or financial interests conflict or may conflict with the interests of the Corporation.” They must also report any such conflicts on the annual disclosure forms.

Last week, the EDC confirmed that Missri did not withdraw from the Saker case, despite his connection to Wachtel.

However, an EDC spokesman stated at the time that there was “nothing to argue” as the helipad contract was never submitted to the board of directors, which “needless to say” is not directly involved in the corporation’s “individual purchases”.

“[The EDC] The Board is in no way associated with this choice of the RFP and the ongoing allegations of a conflict of interest have no factual basis,” Holmes said Thursday, using the acronym “Request for Proposal.”

EDC reports show that Saker could raise tens of millions of dollars from a new contract for the helipad, which is primarily used by helicopter companies that cater to wealthy tourists and business executives operating in the area.

Although EDC plans to allow Saker to continue to operate the helipad, the matter must be approved at a joint hearing between the corporation and Adams Contracting Services on March 3.

Trenck argued that the hearing should be postponed pending an investigation.

Content Source

California Press News – Latest News:
Los Angeles Local News || Bay Area Local News || California News || Lifestyle News || National news || Travel News || Health News

Related Articles

Back to top button