Councilors raise concerns about vague 'special market conditions' procurement exemption after scattered‑site contract gap

Council staff and procurement briefed the Urban Experience Committee on the administration’s request to use a seldom‑used procurement exemption called "special market conditions" to extend scattered‑site contracts for homelessness services while a new RFP is issued.

Jason McConoskey, Director of Purchasing and Contracts, said the city must use either a competitive process or an exemption to enter contracts. The city missed the competitive timeline to absorb contracts previously operated by Empire Health Foundation, so staff proposed declaring a "market conditions" exemption to bridge the gap while issuing a new RFP.

McConoskey described the exemption as "not well defined" and said it is infrequently used. He said it is ultimately a council determination whether the situation meets the exemption criteria. Council members stressed the administration had notice that the EHF contract would end and described the resulting circumstance as "self inflicted." Several council members said they will support the temporary extension but urged a revision of procurement rules and clearer administrative policies to limit future use.

Council direction and follow‑up: Members asked procurement and administration to prepare clearer guardrails and a resolution that expresses council intent to limit the use of the special market conditions exemption and to return with revised administrative procedures. Staff said they are working on updates to procurement policies and internal procedures to make the tool an exceptional, not regular, pathway.

Context: Council and CHHS staff said an RFP for new scattered‑site providers was posted and closed recently; the requested special‑market‑conditions exemption would cover a three‑month extension while new contracts are procured and a new provider begins work.