Tuesday, March 24, 2026, 12:30 p.m. (New York City time), 250 Broadway - 8th Floor - Hearing Room 3
Committee: Committee on Contracts
The Committee on Contracts held its fiscal year 2027 preliminary budget hearing for the Mayor's Office of Contract Services (MOCS), chaired by Lincoln Restler. MOCS Director (referred to as
0:10 Oh oh , good afternoon
0:10 ladies and gentlemen welcome
0:13 to the New York City Council
0:15 hearing for the committee on
0:17 contracts at this time I'd
0:18 like to remind everyone t
0:20 oplease silence all devices and
0:21 at no point during the hearing u
0:24 want to testify at today's
0:26 hearing please see us sergeant
0:27 at the back of the room t
0:28 ofill out a testimony slip
0:30 chair we are ready to begin
0:36 afternoon ah and welcome t
0:39 othe fiscal 20 27 preliminary
0:42 budget hearing for the mayor's
0:43 office of contract services or
0:45 mox my name is Lincoln ressler
0:46 and I have the privilege of
0:48 chairing the committee on
0:49 contracts and I want to thank
0:51 director yu for joining us I
0:51 think for the third time in
0:52 about six weeks I'm hopefully
0:54 we'll give you a reprieve for
0:56 our next hearing maybe even
0:56 our next two hearings but it's
0:59 always good to have you before
1:01 the committee marx's fiscal
1:02 year 20 27 preliminary budget
1:05 totals $39.6 million which
1:07 includes 20.1 million fo
1:10 rpersonnel services to support
1:13 240 45 positions 13.5 million
1:14 for other than personnel
1:15 services this budget is less
1:17 than the 26 adopted budget I
1:21 should also note I just want
1:22 to thank council stephens for
1:24 joining us today it's always
1:25 good to have our friend from
1:26 the bronx and we are joined on
1:28 zoom by the former chair of
1:30 this committee Council Member
1:31 Julie Wong the mayor's office
1:32 of contract services is
1:33 responsible for overseeing
1:35 supporting and promoting the
1:37 city's procurement system
1:37 max's is authorized to perform
1:39 pre and post audit reviews and
1:41 to provide all necessary
1:43 determinations approvals and
1:44 certifications related t
1:46 oagency procurement actions mox
1:47 is also responsible for
1:48 maintaining the city's central
1:49 contract registry over 20% of
1:51 the city's the citywide budget r
1:56 contracted services through
1:58 almost 18000 individual
2:01 contracts this scale
2:02 underscores both the magnitude
2:03 of the responsibility and the
2:05 vital importance of the work
2:06 that mox does each and every
2:07 day the City relies heavily on
2:10 contracting for everything
2:11 from repaving our streets t
2:12 obuilding our schools t
2:14 ooperating our shelters and
2:15 providing meals for seniors
2:16 and so much more when
2:19 confronted with emergencies
2:20 from covid to asylum seekers
2:22 we most often turn to human
2:24 services and nonprofit
2:25 providers who are able t
2:26 oquickly and nimbly respond t
2:27 ocrises at this hearing we plan
2:29 to examine how mox is staffed
2:31 and equipped to efficiently
2:33 handle this large volume of
2:35 contracts we also hope t
2:36 ounderstand what technology and
2:38 software improvements are
2:38 needed to ensure that
2:39 nonprofit providers are paid
2:41 on time and that marks can
2:43 adequately track and manage
2:44 the procurement system as we
2:45 confront and as we confront a
2:48 budget deficit we hope to gain
2:50 a better understanding of how
2:51 mox can help identify savings
2:53 and efficiencies we have seen
2:56 past examples like
2:57 multimillion dollar contracts
2:58 for consulting firms firms t
3:00 oanswer basic policy questions
3:02 or redundant contracts across
3:04 different City agencies or
3:06 different City agencies paying
3:08 wildly different rates for the
3:10 exact same services as areas
3:12 that could be potential
3:14 opportunities for meaningful
3:15 savings I look forward t
3:16 ohearing from the director of
3:17 the mayor's office of contract
3:19 services on ways that the
3:20 council can better support
3:22 your work in the upcoming
3:23 fiscal year director you I
3:25 very much appreciated your
3:26 leadership and commitment t
3:27 oworking with the council t
3:29 oget nonprofits paid on time
3:30 improve our procurement
3:31 process and ensure our
3:33 contract process our
3:34 contracting process operates
3:35 efficiently I'd like to thank
3:36 the contract committee staffer y
3:39 owen owen cutoff ski for
3:42 guiding the preparations for
3:43 this hearing so ably jack
3:45 story also from the council
3:49 finances financial from the
3:49 council finance division I'm
3:52 alex polen off committee
3:53 counsel joe harry frazier who
3:53 were very happy has followed
3:55 us from gabba pops alex blanc
3:57 and of course my chief of
3:58 staff molly haley who is very
3:59 much the brains of our
4:01 operation I'd like to um I
4:03 recognize my staff before we
4:04 begin I'd like to ask
4:06 committee counsel to swear in
4:07 the director.
4:08 We will now hear testimony
4:10 from the administration before
4:11 we begin I will administer
4:13 administer the affirmation ah
4:15 director yu will you please
4:16 raise your right hand do you
4:18 affirm to tell the truth the
4:19 whole truth and nothing but
4:21 the truth before this
4:21 committee and to respond
4:22 honestly to Council Member
4:24 questions I do.
4:25 All right you be getting
4:29 ready.
4:29 Good afternoon chair
4:31 wrestler councilmember Stevens
4:34 and members of the contracts
4:36 committee thank you for the
4:38 opportunity to testify on the
4:38 fiscal year 20 27 preliminary
4:41 budget for the mayor's office
4:42 of contract services I'm a
4:44 touch under the weather but I
4:45 am very very pleased to be
4:48 here
4:48 . At the center of citywide
4:51 operations mox oversees the
4:52 systems that govern how tens
4:53 of billions of dollars flow
4:56 through New York city's
4:57 economy mox funds the
4:59 infrastructure of procurement
5:00 the rules oversight and
5:02 technology that agencies and
5:03 providers rely on to mov
5:06 econtracts efficiently and pay
5:07 providers on time as a result
5:09 our office plays a central
5:10 role in a procurement system
5:11 that directs more than $40
5:14 billion in public spending
5:15 each year in fiscal year 20 25
5:18 awarded more than $42 billion
5:19 in contracts for goods
5:21 services and construction
5:23 human services alone accounted
5:24 for more than $16 billion tha
5:26 ttotal thousands of nonprofit
5:28 providers providers small
5:29 businesses and bb's depend on
5:30 the reliability of this system
5:33 to operate public works and
5:36 infrastructure delivery are
5:37 also a critical part of this
5:39 system beyond human services
5:40 and operational spending City
5:42 procurement is the mechanism
5:43 through which New York
5:44 delivers major capital
5:45 projects that residents depend
5:47 on including streets bridges
5:50 schools public buildings and
5:51 other core infrastructure the
5:53 effectiveness of the
5:54 procurement system directly
5:56 yto construction and ultimately
6:02 into service at its core the
6:03 city's contracting system
6:04 connects public dollars to the
6:06 goods services and
6:08 infrastructure that New York
6:08 er's rely on every day the
6:10 City of New York depends on
6:12 its contracts deliver child
6:14 care shelter food access
6:16 health care construction and
6:17 other essential services and
6:18 investments but those
6:19 contracts do not move on their
6:21 own every stage of the
6:23 contracting life cycle
6:24 planning procurement award
6:27 registration and payment
6:29 requires
6:30 . Resources coordination and
6:30 sustained operational capacity
6:32 that is especially important
6:33 at a time of heightened.
6:35 Uncertainty and growing
6:36 operational demands as
6:37 agencies navigate cost
6:39 pressures shifting market
6:40 conditions and growing service
6:43 demands the City must continue
6:44 investing not only in the
6:46 contracts themselves but in
6:47 the procurement system that
6:48 makes those contracts possible
6:50 strategy and execution both
6:52 matter obtaining the best that
6:53 the market has to offer the
6:54 City of New York and then
6:56 turning those opportunities
6:58 into functioning contracts
6:59 that deliver results requires
7:02 strong systems clear processes
7:03 and sustained operational
7:04 support procurement is not
7:06 simply an administrative
7:07 process.
7:07 It is how the City secures
7:10 those goods services and
7:11 infrastructure fairly
7:13 responsibly and in compliance
7:14 with an increasingly complex
7:16 legal and regulatory framework
7:17 and because City contracting
7:19 directs billions of dollars in
7:20 public spending it is also a
7:22 major economic engine that
7:24 shapes opportunity for
7:26 businesses and nonprofit
7:27 organizations across New York
7:28 City today I will focus on
7:29 what this budget supports
7:31 strengthening end to end
7:33 contracting performance
7:34 supporting agencies and
7:36 providers and continuing t
7:37 oprove improve the systems that
7:38 move contracts from planning
7:40 to payment mock's institute
7:42 the preliminary budget
7:43 sustains the personnel and
7:44 operational capacity required
7:45 to carry out these
7:48 responsibilities and
7:48 continuing strengthening the
7:49 city's procurement
7:51 infrastructure a core
7:51 component of this work is
7:53 ensuring that agencies and
7:54 vendors have the knowledge and
7:57 resources necessary t
7:58 onavigate the city's
8:00 procurement system to support
8:01 that goal mox operates mach
8:04 the city's centralized
8:05 procurement training and
8:06 education program the
8:07 institute provides both
8:08 virtual and in person training
8:10 designed to meet users where
8:11 they are whether they are
8:14 experienced procurement
8:15 professionals or organizations
8:16 engaging with City contracting
8:17 for the first time since it's
8:19 launch in 20 22 the mox
8:21 institute has trained more
8:22 than 29000 users across City
8:24 government and the vendor
8:26 community this work includes
8:28 procurement training institute h
8:31 supports agency procurement
8:32 staff and meeting professional
8:34 development standards and
8:35 strengthening procurement
8:36 expertise across City
8:38 government through more than
8:39 12000 agency staff have
8:41 received training on
8:42 procurement rules and best
8:43 practices the institute also
8:45 operates mox in your
8:47 neighborhood a monthly
8:48 workshop series designed t
8:49 ohelp vendors and prospective
8:51 vendors better understand how
8:52 to do business with the City
8:55 particularly small businesses
8:55 and community based
8:58 organizations addition the
8:59 getting started webinar series
9:02 provides demonstrations of
9:03 passport functionality and
9:04 opportunities for vendors t
9:06 oask questions directly to mock
9:08 staff beyond formal trainings
9:09 mox also publishes guidance
9:12 documents and and
9:13 instructional resources
9:13 designed to help users
9:15 navigate procurement processes
9:17 more effectively over the past
9:18 year mox has also expanded how
9:21 it communicates procurement
9:22 information to vendors and
9:24 providers recognizing that
9:25 contracting guidance is often
9:27 technical and difficult t
9:28 onavigate the agency has
9:30 increasingly focused on more
9:32 accessible actionable and
9:34 education first communications.
9:35 That includes simplified
9:37 guidance direct engagement and
9:40 short form educational content
9:41 designed to help vendors
9:42 better understand requirements s
9:46 the goal is straightforward t
9:48 omake complex system to make a
9:50 complex system easier t
9:51 onavigate and to help more
9:54 organizations compete
9:54 successfully for City business
9:56 procurement reform technology
9:58 alone cannot ensure well
9:59 function functioning
9:59 procurement system the
10:00 integrity of City contracting
10:02 also depends on clear rules
10:04 consistent oversight and a
10:05 commitment to fairness and
10:07 transparency mock serves as
10:08 the city's central procurement
10:10 authority responsible for
10:12 establishing procurement
10:13 policy ensuring compliance
10:15 with procurement roles and
10:16 supporting agencies as they
10:18 implement contracting
10:19 processes across a wide range
10:20 of programs and services
10:22 public procurement must
10:23 balance several priorities
10:25 simultaneously contracts must
10:26 be awarded fairly and
10:29 competitively taxpayer dollars
10:30 must be protected agencies
10:32 must be able to move quickly
10:33 to deliver services and goods
10:35 effectively in recent years
10:36 the City has undertaken
10:39 reforms designed to modernize
10:40 procurement practices while
10:42 preserving strong safeguards
10:44 legislative and policy changes
10:45 have increased review
10:47 thresholds
10:47 . Streamlined certain
10:49 procedural requirements and
10:50 expanded procurement tools
10:51 that help agencies work more
10:53 effectively with mw and small
10:56 businesses mocks his focus
10:57 moving forward is ensuring
10:59 that agencies implement these
11:01 tools consistently and that
11:02 procurement rules continue t
11:04 opromote fairness transparency
11:06 and opportunity across the
11:06 cities vendor community that
11:08 means procurement policy must
11:10 be both principled and
11:12 practical the City has t
11:14 omaintain safe strong
11:15 safeguards while also making
11:16 sure the process is navigable
11:19 predictable and capable of
11:20 keeping pace with service
11:21 delivery a system that is
11:23 overly fragmented or difficult
11:25 to navigate and poses real
11:26 costs on agencies trying t
11:28 odeliver programs on nonprofitsd
11:32 on businesses deciding whether
11:33 to compete for City work at
11:35 all health and human service
11:37 reform an effective
11:39 procurement system must
11:40 ultimately translate into
11:41 timely and predictable
11:43 payments for the organizations
11:44 delivering services on the
11:46 cities behalf as the committee
11:47 heard during last month's
11:49 oversight.
11:50 Hearing nonprofit payment
11:51 delays remain one of the most
11:53 pressing concerns facing many
11:54 of the city's provider
11:56 partners when payments are
11:59 delayed nonprofit
11:59 organizations are often forced
12:01 to carry additional financial
12:02 risk which can be especially
12:05 difficult private for
12:05 providers operating with
12:07 limited reserves.
12:08 These delays can affect
12:11 payroll staffing stability and
12:11 the continuity of essential
12:13 services while the City has
12:14 made progress in improving
12:17 contracting timelines and
12:18 payment practices the
12:20 experience of providers across
12:20 the system remains uneven some
12:23 contracts move efficiently
12:25 through life procurement
12:26 lifecycle while others still
12:28 encounter delays related to
12:30 contract negotiation budget
12:31 review or administrative
12:33 approvals.