Client: Port Authority of New York and New Jersey (PANYNJ) LaGuardia Airport 

Relevance to DOA: Demonstrates the importance of a trusted expert partner to deliver a solid fraud prevention program and maintain integrity of client projects.

Since 2009, CohnReznick has been the Integrity Monitor on several multi-billion dollar PANYNJ projects, overseeing most project facets including contract and records compliance; labor, materials and equipment billings; safety and environmental compliance; and investigative, auditing and other monitoring tasks. Starting in 2015 and now with 96% of the program complete, our team was tasked to monitor the $4.2B Central Terminal Building (CTB) Redevelopment Project for La Guardia Airport (LGA), deterring, uncovering and reporting unethical and illegal conduct to the Port Authority’s Office of Inspector General (OIG). To date, we monitored 269 contractors spanning 69 trades and 135 unions, conducted 82 MWBE & 22 non-MWBE office visits, and conducted 10,860 field activities/observations.

Issue

The CTB for LGA had not been expanded and modernized since the 1990s. In 2013 the PANYNJ Board of Commissioners approved the final planning efforts to facilitate the formation of a Public-Private Partnership (P3) that would replace the existing CTB. The CTB Redevelopment Project includes expansion of the current terminal, as well as redevelopment and construction of vital infrastructure
including roadways, utilities and parking, These disparate activities require careful oversight to ensure all entities engaged in these projects comply with relevant laws and regulations. 

Action

CohnReznick and its subcontractors developed, implemented and verified processes and procedure reviews to identify and eliminating fraud, waste and abuse; designed and implemented risk mitigation controls for identified risks; performed records review and compliance of the General Contractor; performed all legal, safety, environmental engineering and forensic accounting of all project costs; conducted investigations as directed by the PANYNJ Inspector General (IG), remediated control deficiencies; and improved the overall fraud prevention program of a $4B+ infrastructure project.

Impact

As the sole Fiscal and Integrity Monitor and Construction Auditor for CTB Redevelopment activities we identified 24 fraudulent OSHA cards out of 895 OSHA card reviews, highlighted 39 potential underpayment of prevailing wages as a result of 2,449 interviews, and after 77% of total MWBE contract spend monitored effected a $10M deduction of MWBE credits to unscrupulous contractors. LGA has been able to achieve a 24% MWBE participation rate, is completing this much-needed project on budget, and the PANYNJ and LGA have been in the news for all of the right reasons.