Committee advances procurement package aimed at easing barriers for local and small businesses

The Committee on Law and Government voted to report favorably a multi-bill procurement package that council and the administration say will increase economic opportunities for Philadelphia residents and lower barriers for local and small businesses to win city contracts.

Ronald Hovey, procurement commissioner, testified that the package (including bills 260,457, 260,458, 260,459 and 260,460 and resolution 260,467) would raise thresholds for local/small-business preferences, expand bidding credits and create mechanisms to limit the effects of direct costs such as bonds. "This legislative package will increase economic opportunities for Philadelphia residents and businesses by lowering barriers to participation in local and small business preferences," Hovey told the committee.

Hovey and Nadir Jones, director in the Office of Business Impact and Economic Advancement, described administrative changes the procurement department is pursuing in tandem with the legislation: centralizing procurement operations, a Philadelphia vendor cooperative to provide concierge vendor services, modernizing solicitation templates and piloting prequalification systems to reduce redundant vendor paperwork.

At the same time, Hovey warned that certain proposed bond-relief provisions may conflict with Pennsylvania bonding statutes that require full payment and performance bonds in the contract's full amount; he said inclusion of some provisions could create confusion with Commonwealth requirements.

Committee members thanked the administration for the collaborative drafting. No roll-call tally was recorded in the minutes; the committee advanced amendments where noted and reported the bills and accompanying resolution with favorable recommendations.