Case Study: Vehicle Inspections

Case Study: Vehicle Inspections

According to a 2002 report by the State Commission of Investigation (SCI), New Jersey’s privately run vehicle inspection program is a "mammoth boondoggle" that is costing taxpayers $247 million more than it would have cost if it were run by the state. In addition, the contract with Parsons Infrastructure and Technology Group to upgrade the vehicle inspection stations resulted from a bidding process that was corrupted by influence peddling. For instance, executives of the company were treated to exclusive private briefings during which they received inside information about the state’s plans and intentions.

SCI is an independent agency set up by the state legislature to investigate political corruption, and waste and fraud in government. This report follows an investigation in mid-2000 by a three-member panel assembled by the state attorney general that concluded that cabinet officers, division directors and senior managers failed to adequately manage the project and ignored explicit warnings that the new inspection system would fail. In addition, from the first day, motorists waited in long lines because of software problems, equipment breakdowns, staffing shortages and untrained inspectors.

The governor has indicated that he may terminate the contract if an audit by his administration determines that Parsons is not satisfying the terms of the contract. It is anticipated that the audit will be completed in the spring of 2002.

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