CITY TAKING A BATH ON NEW MILK-DELIVERY DEAL
By DAN MANGAN and YOAV GONEN, NY Post
Talk about milking the system! The city Department of Education is on track to spend $35 million more on milk contracts over the next five years after scrapping its old delivery system -- just as The Post warned last year.
Companies formerly bid on individual schools and added them to their store routes, costing the city $19 million a year.
So the DOE created eight huge routes, eliminating smaller distributors. Yet the new cost of delivery is $26 million a year, a 37 percent jump.
The DOE attributes the spike to an 81 percent rise in the price of milk since the last contracts were signed in 2003. But a gallon cost less than $2.80 in 2003 and $3.80 last year, about 35 percent more. And since then, it's dropped back to $3.20.
Still, David Ross, DOE head of contracting, insists going from some 1,200 bids to one on Staten Island, one in Manhattan and two in each of the other three boroughs reins in costs.