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Council proposes procurement office and advance payments to speed nonprofit contracts

October 10, 2025 | New York City Council, New York City, New York County, New York


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Council proposes procurement office and advance payments to speed nonprofit contracts
Council members proposed a set of procurement and contracting reforms aimed at reducing chronic late payments to nonprofit contractors and improving citywide procurement oversight.

Intro 12-49a would require agencies to submit annual reports on contract registrations and to submit corrective action plans if an agency registered 250 or more contracts or $25 million in contracts in the prior fiscal year and more than half of those contracts were registered 90 days or more after their start dates. Council Member Justin Brannon (as referenced) framed this as accountability for agencies that repeatedly register contracts late.

Separately, Intro 12-48b would establish an Office of Contract Services headed by a director of contract services who would serve as the city's chief procurement officer, with authority to coordinate procurement activities, review contract guidelines, conduct pre- and post-audit reviews, and provide training and technical assistance. Intro 12-47b, sponsored by the speaker and Council Member Julie Won, would require immediate advance payment of 50% of a nonprofit contract's value upon registration by the comptroller, excluding certain emergency, DHS temporary housing, mayor's office of criminal justice, and residential foster-care and domestic-violence contracts.

"For too long, the city has relied on nonprofits ... while forcing them to wait months and months to get paid," a sponsor said. The sponsors characterized the package as accountability and respect for nonprofit partners that deliver services under city contracts. The measures were placed on the day's agenda; the transcript does not include recorded votes.

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