November 17, 2004 TO THE PRESIDENT AND MEMBERS OF THE CITY COUNCIL OF PHILADELPHIA: I am herewith returning to you without my signature Bill Number 040184, which would amend Title 17 of The Philadelphia Code, entitled "Contracts and Procurement," by adding a new Chapter 17-1200 entitled "Foreign Outsourcing," prohibiting City service contracts under which the work is performed outside the United States. The intent of the legislation is to preserve City service contracts for local and/or domestic entities. In light of our current economic climate and rising unemployment rates, the intent of Bill 040184 is laudable. However, because Bill 040184 prohibits the City from entering into competitively bid and non-competitive service contracts with entities who perform any part of the work in any location outside the United States, and would require the City to include such a prohibition in every service contract, it exceeds Council's legislative authority. The Law Department h...

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November 17, 2004

To the President and Members of

the City Council of Philadelphia:

I am herewith returning to you without my signature Bill Number 040184, which would amend Title 17 of The Philadelphia Code, entitled “Contracts and Procurement,” by adding a new Chapter 17-1200 entitled “Foreign Outsourcing,” prohibiting City service contracts under which the work is performed outside the United States.

The intent of the legislation is to preserve City service contracts for local and/or domestic entities. In light of our current economic climate and rising unemployment rates, the intent of Bill 040184 is laudable. However, because Bill 040184 prohibits the City from entering into competitively bid and non-competitive service contracts with entities who perform any part of the work in any location outside the United States, and would require the City to include such a prohibition in every service contract, it exceeds Council's legislative authority.

The Law Department has returned Bill 040184 without the Solicitor's signature, based on its opinion that this bill exceeds Council's authority under the Home Rule Charter. The Solicitor explained in a memorandum that this legislation violates the Charter's competitive bidding obligation to award such contracts to the “lowest responsible bidder”, irrespective of where the work is performed. As for non-competitively bid contracts, although there are no comparable restrictions in the Charter, terms of such contracts are generally a matter within the Administration's prerogative, not subject to Council control, according to the Solicitor's opinion.

I am willing to consider an Executive Order to prohibit foreign outsourcing, and I am directing my Administration to research this issue and recommend potential action. For the foregoing reasons, however, I am returning Bill 040184 without my signature.

Respectfully submitted,

John F. Street, Esquire

Mayor - City of Philadelphia

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