Authorizing the creation of a Not-for-Profit Provider Task Force to review the City's contract and procurement processes with non-profit providers and propose recommendations for improved business practices

WHEREAS, Not-for-profit vendors provide billions of dollars in City services every year and are crucial partners in ensuring we provide quality service to our residents; and

WHEREAS, The non-profit sector is fragile financially and organizationally, and City Council strongly wants to see the sector grow as a partner to the City in delivering services and improving quality of life for residents; and

WHEREAS, Throughout the last two years, it has become abundantly clear that the City’s contract and procurement processes with non-profit organizations are in crisis; and

WHEREAS, Many non-profit providers wait months for contracts and payment for services, meaning they provide City services without a contract in place and without timely reimbursement; and

WHEREAS, Without clearly established policies and practices as it relates to non-profit business, the City of Philadelphia has created a system that puts non-profit providers in a difficult position to provide services while drawing on lines of credit and incurring interest costs that are not reimbursable by the City. Additionally, many providers do not see increases in contract amounts, which creates additional challenges as the cost of service grows; and

WHEREAS, With the current state of the City’s contracting and procurement practices, City services that support many of our most vulnerable residents are constantly at risk; now, therefore, be it

RESOLVED BY THE COUNCIL OF THE CITY OF PHILADELPHIA,

SECTION 1. Establish a “Not-for-Profit Provider Task Force.” The Council hereby authorizes a “Not-for-Profit Provider Task Force” (hereafter referred to as “the Task Force”).

SECTION 2. Composition of the Task Force. The Task Force shall consist of members appointed by City Council. Members of the Task Force shall consist of non-profit providers representing organizations of different sizes and organizational structures who do business with the City, experts in contracting and procurement processes, and representatives from the City’s Chief Administrative Office, Procurement Department, Law Department, Finance Department, and any department that contracts with not-for-profit organizations, as well as other relevant stakeholders. The Task Force shall appoint one of its members to serve as Chair.

SECTION 3. Purpose of the Task Force. The Task Force shall examine and recommend reforms to Title 17 of The Philadelphia Code, and its implementation by the Chief Administrative Office, Procurement Department, and any other relevant department that does business with not-for-profit providers. The Task Force should also recommend changes aimed at improving interdepartmental cooperation and the operation of procurement and contracting.

SECTION 4. Function of the Task Force. The Task Force’s charge shall include conducting a thorough review of existing procurement, contract, and payment processes to identify inefficiencies and areas for improvement, soliciting information and feedback from non-profit and community stakeholders to understand concerns and challenges, conducting research on contract and procurement reforms in other municipalities, and formulating recommendations to streamline business processes, ensuring efficiency, transparency, and support for non-profit service providers.

SECTION 5. Meetings of the Task Force. The Task Force shall be convened within 90 days of its creation and shall meet at such times as a majority of its members deem necessary and appropriate.

SECTION 6. Report of the Task Force. The Task Force shall submit a preliminary report of findings and recommendations to the Mayor and City Council by December 31, 2024, which should include an action plan for completing its review and investigation and submitting a full and complete report to the City Council with its findings and recommendations, to be made available to the public.

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