Committee on Contracts

Thursday, October 29, 2026, 2 p.m. (New York City time), 250 Broadway - 8th Floor - Hearing Room 2

Committee: Committee on Contracts

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Summary

The Committee on Contracts held an oversight hearing on the PASSPort procurement system and related contracting issues. City officials, including the Department of Design and Construction commissioner and the Mayor's Office of Contract Services director, answered questions about PASSPort costs, user experience problems, release seven, unpaid invoices, contract registration backlogs, and ballot question two on procurement reform. Council Members also questioned the administration on legislation covering change order timeframes, cost benchmarks, and capital project tracking. Two members of the public testified, one urging greater investment in procurement staffing and systems and one representing human services providers describing delays and burdens in PASSPort.

Transcript

28:54 Passport do what it should be

28:54 doing because my pushback is

28:57 always that you know we know

28:58 that we need a system that is

29:01 working and it's not about

29:02 just blowing a passport it's

29:03 about thinking about if this

29:05 isn't working then what are we

29:05 doing to make it work but like

29:07 specifically I know one of the

29:08 things that I've heard often

29:10 is that like you they'll go

29:12 and they'll look into passport

29:13 and like the space where it

29:16 says that the contract is it's

29:18 not and so even that function

29:21 sometimes it's difficult t

29:22 ofind out where they're at in

29:23 the process so what are some

29:24 of the things that you guys

29:25 are doing to improve that so

29:27 that providers could use it in

29:29 a functional way vice chair

29:31 stephens thank you so much and

29:33 thank you so much for

29:36 recognizing that large large

29:37 procurement that we did on

29:39 compass it really was a all

29:42 hands effort in dike d the

29:46 preparing agency they really

29:47 rolled up their sleeves and we

29:49 were happy to support that

29:51 because it meant after school

29:53 for a lot of kids who did not

29:54 previously have after school

29:57 um and that was a herculean

29:59 . Effort absolutely and I gave

30:00 them so many kudos which I

30:02 never do they've been amazing

30:04 so yes I

30:04 . Wanted to give you your

30:06 kudos as well because you

30:07 played a part in that as wel

30:08 lthank you thank you um so t

30:13 oanswer your question there are

30:16 gaps I'm going to be very

30:18 upfront there are gaps we have

30:22 tried very hard through

30:23 technology technology solution

30:25 to solve for many problems and

30:27 answer to many people and as

30:30 we evolve the project it

30:33 really is about taking a

30:35 moment and seeing how far

30:37 we've come but then also

30:38 seeing where where is where

30:41 are we falling short on some

30:42 of to some of our providers

30:46 our non profit

30:47 . And what is that gap account

30:49 attributable to is it is it

30:52 the technology is it um change

30:56 management is it um or is it

30:59 or is it something else you

31:01 are not the first to lift up

31:03 and raise that there are user

31:06 experience issues it is a very

31:09 common issue that is brought

31:10 up and it's something that in

31:13 this moment where we are with

31:15 the with the the project

31:18 system stability along with

31:21 payment predictability and

31:23 contracting predictability

31:24 those are our north stars and

31:26 the system stability you you

31:28 okay chair yeah.

31:30 Okay the flags are attacking

31:34 you.

31:34 Um so the system stability

31:36 is very critical the I'm also

31:39 not going to be shy about that e

31:43 system experienced a little

31:44 bit of turbulence because of

31:46 the changes we were doing t

31:47 othe system in a very short

31:49 amount of time and what we

31:51 have observed having the

31:52 benefit of looking back when

31:54 we change the system sometimes

31:56 we shake the system a little

31:58 bit.

31:59 And that that our users

32:01 experience it our nonprofits

32:03 experience it our um our

32:06 construction firms experience

32:07 it our agencies experience it.

32:09 So one of the things that we

32:10 are trying to do is we're

32:12 going to focus on release

32:15 seven which I spoke about in

32:16 the testimony but we're also

32:17 going to really try to be very

32:20 thoughtful about not

32:21 introducing New things into

32:23 the system that be payment and

32:26 contract and predictability.

32:27 But yes there is work that

32:29 we need to do to get in there

32:31 and here from the users what

32:33 it is that they are

32:34 experiencing and their needs

32:35 are not being met

32:36 . How are you folks able t

32:38 ogive you back that feedback

32:39 what is that feedback process

32:41 look like because again it

32:42 gets really hard and this is

32:43 one thing things I try t

32:44 oexplain to the City it's

32:45 really hard for groups to be

32:48 able to tell providers and

32:49 people who are giving them

32:50 money that they're messing up

32:53 so what is the expectation and

32:54 how is that support like how

32:56 how are you guys collecting

32:58 that feedback.

32:58 Because you know that is

33:00 always a struggle for me

33:01 because I were like no we

33:02 we're working and I'm like.

33:03 You know the providers are

33:04 telling me different stuff

33:05 that they're telling you

33:06 because they can't tell you

33:06 that because you're giving the

33:09 money yes it's it's a it's ah

33:13 it's a fair point there are a

33:14 few ways that I think we pick

33:18 up the signs in it and make

33:21 and addressing they're not as

33:22 direct as like raising a

33:25 direct complaint we look at

33:28 the

33:28 . Tickets so avengers

33:29 experiencing an issue on the

33:31 procurement system and also on

33:33 on passport and we are

33:35 reviewing the tickets and are

33:37 there patterns that we can

33:38 discern from what is what

33:40 we're getting

33:41 . The other thing we do is we

33:43 do proactively try to survey.

33:45 Our vendors on particular

33:46 pieces of the passport

33:48 functionality most recently we

33:49 did it for the vendor reports

33:50 that we turned on earlier this

33:52 year and we're trying to see

33:52 if we can what we can glean

33:54 from there

33:54 . And then also at certain

33:56 moments we will convene a or

34:00 particular groups and we will

34:01 ask them to.

34:02 Tell us how we're doing and

34:04 they are not shy about it they

34:07 do not hold back I was

34:08 supposed to ask some of

34:10 lincoln's questions but

34:10 obviously that that to so him

34:11 thank you so much thank you

34:12 for the time thank you

34:13 . Thank you Madam vice chair I

34:15 will now kick it to council

34:17 member followed by council

34:19 Council Member thank you chair e

34:22 questions about my two pieces

34:24 of

34:25 . Legislation starting with

34:27 thousand 64 which would

34:29 require two set time frames

34:31 for agency approvals and

34:33 change or determinations does

34:36 the administration support

34:37 intra 1064.

34:38 I feel I feel like there's a

34:40 way to pass this bill that is

34:43 beneficial to both what you're

34:44 trying to get at and what the

34:46 agency is trying to do and

34:48 I'll tell you I get really

34:49 frustrated with change orders

34:51 but the main delay that we see

34:52 in change orders is not the

34:53 process itself of putting a

34:55 change order together and

34:55 sending it to the controller

34:58 for registration

34:58 . It is agreeing with the

35:00 contractor that something is a

35:01 change

35:01 . Order and this is what our

35:03 project managers and engineers

35:05 do essentially what happens is

35:06 the contractor say that's

35:08 outside the contract change

35:10 order because that's

35:11 automatically where they would

35:12 go to we then say no no it is

35:15 definitely within scope it's

35:17 within the contract you should

35:18 do it and there is no need for

35:20 a change.

35:20 Order and so that back and

35:22 forth which

35:22 . Is very very common

35:25 unfortunately.

35:25 Is what soaks up the most

35:26 time and it's hard to put a

35:27 clock on that um I am happy t

35:29 oput a clock on when we agreed

35:32 to a change.

35:33 Order nothing should be

35:33 delayed we usually take about

35:35 a month internally to put a

35:36 package together and then send

35:37 them to the controllers

35:38 officer registration the

35:39 controller then has a month so

35:41 we're talking about a two

35:43 month period which to me

35:44 sounds pretty reasonable but

35:45 it's this back and forth that

35:47 where we spend the most time

35:48 due do any agencies currently

35:55 set internal deadlines for

35:56 acting on change word of

35:58 requests other than request or

36:00 other contract.

36:01 Approvals yeah it's a really

36:02 good question you know the

36:04 last administration had a

36:05 capital reform task.

36:06 Force that was looking at a

36:07 lot of these issues um we're

36:09 gonna be restarting it soon

36:10 and we're happy to share that

36:12 information when we're

36:13 finalized but it is something

36:14 that we can look at I think we

36:16 we set

36:17 . The cities at times on

36:20 payments so invoicing a I

36:23 don't believe we had an

36:24 agreement on change order

36:26 timelines but I think it's

36:26 worth the discussion for

36:27 . Sure and on average how long

36:29 does take to act on a change

36:31 order request well.

36:32 On the project of this size

36:33 of the

36:34 . When we agree there's a

36:35 change order it's usually

36:36 about a two month period

36:39 agreeing to the change order I

36:40 think takes the longest time

36:41 and sometimes it can take you

36:43 know four or five months of

36:44 just back and forth I would

36:46 say though most of these

36:48 sentences the work is

36:50 continuing and a change order

36:52 shouldn't stop the actual

36:55 construction there are times

36:55 when we are discussing change

36:56 orders for work that will

36:57 happen you know nine months

36:59 from now just in anticipation

37:01 of that

37:02 . So it is frustrating and we

37:03 could do better but it's also

37:05 our job to make sure that the

37:07 contractors are doing what

37:07 they're supposed to be doing

37:09 . And then for thousand 65

37:10 which is the cost benchmarks

37:13 yeah does the administration

37:14 support that uh.

37:15 I am happy to do anything

37:18 backwards looking so

37:19 essentially our contracts are

37:21 public right and so whenever

37:22 we put out a contract for a

37:25 boiler replacement or

37:26 replacement we can absolutely

37:28 publish that I a little

37:30 worried of putting a what we

37:31 think is the estimate of what

37:32 a future project would look

37:34 like just because the

37:36 economics of construction

37:38 changed very frequently and so

37:39 so for example right now the

37:44 construction um elevation or

37:45 cost are about 8% a year and

37:48 that can change on any given

37:50 time because of like factors

37:53 outside of New York City data

37:55 centers are soaking up a lot

37:57 of the raw materials that we

37:58 would normally use for

38:00 construction steel concrete um n

38:06 the prices of those materials

38:08 increase and it would be hard

38:09 for me to put a benchmark

38:10 there and then something like

38:12 this happens and the numbers

38:14 are outdated but I think it's

38:15 a good idea to have a sort of

38:18 a.

38:18 List of items of that we've

38:21 paid for for all these small

38:23 capital projects so I feel

38:24 like there's a way to achieve

38:26 what you're aiming to achieve

38:27 and what we feel comfortable

38:28 . Does the City have data on

38:30 the actual total costs of

38:32 completed small capital

38:33 projects and which system does

38:35 that data come from

38:37 . Yeah we definitely have the

38:38 data it is something that we

38:39 look at to and when we are

38:41 estimating projects that are

38:42 front and planning um I I

38:44 don't think it's a easily a

38:47 available or searchable for

38:48 somebody in the public but all

38:51 our contract data is available t

38:54 together I think in the way

38:55 that you would want.

38:57 It and would benchmarks

38:58 under this bill be consistent

39:00 with the benchmarks and the

39:03 mayor's management report.

39:05 Yeah the mmr has benchmarks

39:08 not on cost they have

39:10 benchmarks on commitments as a

39:11 . Whole so we essentially have

39:13 capital commitments that we

39:14 are aiming for on any given

39:16 year we also have timelines

39:19 construction timelines that we

39:20 include so if the goal is t

39:21 oonline it I believe we can

39:24 right on time thank you chair

39:26 thanks so much councilmember

39:27 Wilson and thank you for the

39:30 thoughtful legislation next up .

39:32 Thank you very much I was

39:34 next door at the childcare

39:36 small business hearing and

39:37 must admit every other word is

39:41 contracting contracting

39:42 contracting so you might as

39:42 well have been there they were.

39:45 They were quite concerned

39:47 about payment as you can

39:49 imagine so that's just so you

39:50 know that's where I've been

39:51 and that's this question mine

39:53 had come up in payment and

39:54 insurance seemed to be the two

39:56 issues do you get the same

39:57 insurance even though you're

39:58 not in charge of insurance

40:00 . Questions you're not in

40:01 charge but it's a mess council

40:04 member thank you yes I I am

40:07 aware of the I think the topic

40:08 of the hearing is the business

40:11 of childcare yeah but guess

40:11 what the real topic is.

40:14 You yeah yes yes

40:18 . Well no so you told I'm

40:19 asking just to things though

40:21 just so you know that's what

40:23 was happening but also on the

40:24 insurance which came up here

40:26 and everywhere else does that

40:28 play into any discussion in

40:29 terms of the contracting I

40:30 know it has something to do

40:32 with you per se and it is a

40:34 state issue but it is constant

40:39 councilmember if I from a

40:41 construction a construction

40:41 perspective we care about

40:42 insurance all the time there's

40:47 too programs that a with the

40:49 administration there is a

40:50 program.

40:51 Called sea sip which the

40:52 contractor contractor

40:54 controlled program that we're

40:55 using for our entire borough

40:57 based jail program essentially

40:58 what that means is what the

41:00 design builder has the

41:02 insurance for

41:03 . Everyone working on that

41:04 project ok that means that

41:07 they can negotiate better

41:08 prices that means it's they're

41:09 not having burdens of smaller

41:11 firms trying to get insurance

41:13 and then we're also looking at d

41:16 insurance program which would

41:17 be the really holding the

41:20 insurance program to

41:20 essentially erase those

41:21 barriers but it is something

41:22 that we're working at because

41:23 we do hear a a lot

41:25 . And could you transfer that

41:27 all to the nonprofit childcare m

41:33 sorry they are that's where

41:33 it's also hit so hard no it's

41:38 a great question that we're

41:40 happy to send back to her

41:41 right I know what that.

41:42 Means and social services I

41:43 know what that means all right g

41:46 just we all need to work on

41:49 insurance.

41:49 The question is my staff

41:51 lovely to do the program with

41:54 that you got compliments on

41:56 about from the Council Member

41:59 Stevens love to have money as

42:01 a grant as opposed to blah

42:02 blah blah blah fine.

42:04 But god forbid that the

42:06 deadline comes the paperwork

42:08 isn't there and they would

42:10 lose all of their money or

42:11 could they go back into what I

42:13 would call the traditional

42:16 contracting process

42:16 . My staff is hysterical that

42:17 they would lose all their

42:19 money councilmember Stevens

42:20 you're not alone in bringing

42:23 up this concern oh I'm sorry

42:26 councilmember Brewer ok cheryl m

42:30 sorry she's very cool that

42:33 that's okay.