Democrats Attack Potential Privatization of Motor Vehicle Inspections

Stung by their inability to block the privatization of the State Lottery, Democratic members of the Assembly Budget Committee yesterday assailed the Christie administration for considering privatization of motor vehicle inspections.

Raymond P. Martinez, chief administrator of the New Jersey Motor Vehicle Commission, acknowledged that privatization was one of the options explored by Eastern Research Group, Inc. (ERG), a Lexington, Mass.-based consultant hired in 2011 to advise the MVC on best practices and assist in negotiations over a contract extension with Parsons Corp. Since 1998, Parsons has operated New Jersey's hybrid system of centralized MVC inspection lanes and private garages that inspect 2.3 million vehicles a year.

"Our goal was always to get a contract extension with Parsons at a price that would save the state money, and we did," Martinez said, asserting that the new three-year contract approved Sunday would cut inspection costs at the state's six centralized facilities from $20.93 per car to $20.29 and save the state at least $1.2 million per year.

Martinez insisted that negotiating a new deal with Parsons was always his intention, rather than shifting motor vehicle inspections to private garages that would charge customers for the service. However, Democratic legislators were not convinced that Martinez and the Christie administration do not have plans on the board already to privatize inspections three years from now when the Parsons contract expires and can't be renewed without a new bidding process.

“The fact that I couldn’t get direct answers to my questions about privatizing vehicle inspections gives me pause, and makes me worry about what will happen three years from now," said Assemblywoman Bonnie Watson-Coleman (D-Mercer). "The administration dodging questions this early does not bode well for the future of our inspections."

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