Minutes

Attendance: Robert S. Peckar, Chairman; Richard T. Anderson; Robert Bergen, Esq.; Robert Chapman; Cathy DelliCarpini-Kruse; M. Michael Francese; Joseph F. Grassi; Bernie Haber; Robert Hagedorn; Mary Libassi, Esq; Frank McArdle; Robert McPherson; Fruma Narov; Joe Patti; Rita Schwartz; Marla G. Simpson; Jay Simson; Janet Whitney Snyder

Committee Chairman Robert S. Peckar welcomed the members and guests and highlighted several current procurement issues, including the work of the new Charter Revision Commission and the status of quality-based selection efforts. He said both the Bloomberg Administration and the City Controller’s Office are interested in procurement improvements.

Mr. Peckar introduced guest speaker Marla G. Simpson, Chief Procurement Officer for New York City and Director of the Mayor’s Office of Contracts, who began her current responsibilities in February.

Ms. Simpson said Mayor Michael R. Bloomberg is fully committed to procurement reform and “the streamlining of an unduly convoluted process.” She said the current system is long on oversight and short on common sense. What’s needed is an oversight system that’s much less cumbersome and layered.

Ms. Simpson reviewed a number of procurement issues:

• The need to reform retroactivity, which is on the way;
• all agencies now have performance indicators and they will be held accountable according to goals;
• there is no overall tracking system for contracts, and improvements are a high priority;
• the Vendex system will be automated and new Vendex filings will no longer be required with each contract;
• the Charter Revision Commission will address many ways of streamlining the charter, which includes much to much detail now;
• simplification of employment reports will be paused;
• change orders will be streamlined in several ways;
• the contractual inconsistencies and conflicts will be removed;
• administration is predisposed to move toward greater use of prequalification, especially for design services.

In summary, Ms. Simpson said “we’re eager to make these innovations in procurement,” rather than negotiate legislative changes. She said the Administration believes legislation is not required for procurement reforms, because the current charter clearly gives the Mayor this responsibility. She pointed to General Municipal Law §103 as an obstacle to greater use of pre-qualification.

Mr. Peckar complimented Ms. Simpson for her presentation and progressive attitude. He pointed out that legislation may be required because mayoral administrations change so frequently and suggested the possibility of a half-day working session with Ms. Simpson and her colleagues on a number of these issues.

Ms. Simpson said a lot can be accomplished in a few years. The Law Department may be difficult to negotiate with, so it is better to work with the Mayoral Administration.

Other committee members supported the need for more enduring legislative change. Ms. Simpson argued that agencies can circumvent legislation, which is much more rigid than procedural reform. She said “QBS is a management decision.”

Mr. Peckar asked whether the agencies shared Ms. Simpson’s views on QBS. She said previous mayors have taken a hard line on “price, price, price” with design services.

The committee also raised the issue of reforming close-out of contracts. Ms. Narov said it is “a breath of fresh air” to hear someone say QBS can save money.

Mr. McArdle suggested that the City and industry join forces to propose change to Law §103 in Albany. Ms. Simpson said that is worth considering, and the Charter Commission may recommend such a change.

On the subject of dispute resolution, Mr. Peckar said that he would form a sub-committee to discuss this further with Ms. Simpson and her colleagues.

Before adjourning, Mary Libassi reported on a meeting she attended with Charter Revision Commission staff and agency representatives. The meeting highlighted the obstacles to QBS, especially the overwhelming preference for low bids.

Mr. Peckar adjourned the meeting at 9:30 a.m. with appreciation to Marla Simpson for such an informative and progressive presentation.

Prepared by,
Richard T. Anderson
President