Audit recommends 18 changes at Rutgers, nearly all on university's contracts
Fans tailgate in the stadium parking lot before a Rutgers football game in 2008. A state audit found today that Rutgers University does not advertise for contracts, and specifically cited the company that manages parking for Rutgers football games.NEW BRUNSWICK — Rutgers University regularly restricts the number of companies bidding for its lucrative contracts, according to an audit released today by the State Comptroller that calls for major changes in the way the school does business.
The audit found Rutgers does not publicly advertise for most of its contracts and often selects its vendors from a small list of select companies. Under the current law, the state university is exempt from many of the bidding regulations governing the state's other colleges and universities.
"When public tax dollars are being spent, there is an obligation to avoid unfair favoritism toward particular vendors and make every effort to seek the best price available," State Comptroller Matthew Boxer said. "Unlike at other state colleges and universities, neither current law nor Rutgers’ own rules require it to do that."
The audit recommends 18 changes at Rutgers, nearly all related to how the university awards its contracts. Rutgers has already made the changes or committed to amending its policies for 16 of the recommendations, the report said.
Rutgers released a two-page statement this afternoon saying school officials were pleased the audit did not find anything illegal in the university's bidding practices.
"The university takes this report very seriously," the Rutgers statement said. "We have accepted the majority of the comptroller’s recommendations, and we are also reviewing our policies to make sure that we continue to purchase the best goods and services at the most competitive prices. In those instances where our policies may seem unclear, we will modify the language as appropriate."
The comptroller reviewed large and small Rutgers contracts, including air charter and hotel accommodations for the university football team and locksmith and security supplies. The audit concluded the university typically asks six to 10 vendors to bid on its construction contracts, even though nearly 150 companies are qualified. The study also found many of the same companies are selected year after year.
For example, Rutgers has used the same parking management company for 16 years to oversee parking at basketball and football games, the audit found. The $325,000 contract is granted without competitive bids because the university said it is a unique service that should not be put out to bid. But the comptroller found at least four other vendors could have done the job if given the opportunity.
The audit also found two contracts were granted to the spouses of Rutgers employees. In one case, the employee was demoted after the conflict was discovered. In the second case, no one was disciplined and the comptroller referred the case to the State Ethics Commission.
"Questions have been raised about Rutgers’ contracting over the years so we took a look at how the process works at the university," Boxer said. "What we found is that Rutgers is permitted to avoid competitive processes that all other public colleges in New Jersey must use. Its procurement policy allows for exceptions that are so general and undefined, they essentially give Rutgers officials unfettered discretion when selecting vendors."