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