Report: Vendor Requests Price Increase Of More Than $600K From Baltimore Due To COVID-19 Despite Contract; City Denies Request
BALTIMORE (WJZ) -- A vendor doing business with the Baltimore City Health Department requested a four percent increase in payment from the city despite the terms of the company's contract, citing the impact of the coronavirus pandemic, a report from the city's inspector general's office found.
According to the report, the unnamed vendor requested a payment increase on May 5 "due to a decrease in service volume, increased operating costs, and additional costs associated with the COVID-19 illness."
In the company's request, they said their revenue was impacted when the city's health department told them to stop services that were not for "life-sustaining purposes," a decision the report said came from the Maryland Department of Health, not the city.
The city denied the request, citing the terms of the contract. The contract, which began on June 27, 2018, and runs through June 30, 2023, does not allow for a price increase except for during two one-year renewal options, the report said.
The inspector general's office estimated the increase would have cost more than $637,000 through the end of the vendor's current contract with the city.
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