And who is14 directly responsible for monitoring wage15 and benefits standards for your16 department's contractors?17 COMMISSIONER ORTMAN: That18 would be Labor Standards.19
Lastly,20 since we've gotten to this discussion of21 renewable contracts and being at22 different stages, of course there may be23 some efficiencies to having the same24 vendor in place for multiple years. In25 188 3/29/11 - WHOLE - BILL 1101371 some cases, it may not be cost efficient,2 because you might get a lower bid at some3 point if you rebid it. I'm not going to4 get into that. I'm going to leave some5 of that up to you. What I will say is6 two things. One, we need to be concerned7 about cost efficiency and cost savings8 and whether these are actually9 competitive processes or not, but, more10 importantly, what I'm concerned about is11 as we move forward and take this12 seriously is, if these are renewable13 contracts and the firms do not meet their14 goals within the first year, I'm very15 concerned with what we're doing on a16 year-to-year basis. It appears to me17 that when someone thinks they're18 guaranteed a renewal, they believe that19 they have to perform to the same standard20 they performed in that current year, and21 they're probably not going to dig for22 more subcontracting opportunities. So if23 you don't get it right in your RFP and24 you don't get it right in the contract,25 189 3/29/11 - WHOLE - BILL 1101371 there's probably not a chance you're2 going to get it right in the series of3 renewals. That's one mayoral term gone4 and that's another mayoral term gone, and5 that's why things don't change.6 And so the question is, of all7 the contracts that exist, citywide8 contracts and contracts by department, I9 would like to know the percentage of10 contracts that are renewable contracts,11 if you can forward that information12 through the Chair.13 COMMISSIONER ORTMAN: I will14 get that information, sir.15
Thank you18 very much.19 The Chair recognizes Councilman20 Jones.21
Thank you,22 Madam Chair.23 Good afternoon.24 COMMISSIONER ORTMAN:25 190 3/29/11 - WHOLE - BILL 1101371 Afternoon.2
In previous3 testimony, the Department of Technology4 talked about a quantitative analysis.5 That is something near and dear to my6 heart, which is called for in Resolution7 No. 100848. And probably the time you8 spend in Chambers you've heard about9 that. It is to take a look at and look10 at the effectiveness, efficiency and cost11 effectiveness of contracting out versus12 doing work internally.13 To what degree, similar to the14 Department of Technology, do other15 departments provide that analysis, and if16 they don't, in what cases does the17 Procurement Department?18 COMMISSIONER ORTMAN: I don't19 know for sure what the other departments20 do before they submit their requisitions21 to us. I can almost bet that OFM does22 it, but that will only be conjecture.23 And I don't know specifically what24 happens with the departments prior to25 191 3/29/11 - WHOLE - BILL 1101371 them submitting their requisitions to us2 in order to get their new contract in3 place.4
Let me, as5 my colleague would say, rephrase it6 differently.7 On what occasion would you have8 reason to look at a contract and say9 that, I know that the cost of this pencil10 is way out of line and that we probably11 don't need to contract it out and we12 probably could do this internally? Do13 you have reason to look at a potential14 bid and say, Wait a minute, we could do15 it cheaper this way? Do you do that?16 COMMISSIONER ORTMAN: We have.17 Mary has an excellent example with the18 switches.19 DEPUTY COMMISSIONER STITT:20 Yes. There was a product called Juniper21 switches that the Division of Technology22 needed to purchase. They were hoping to23 purchase it actually off of a state24 contract, but we did have enough time to25 192 3/29/11 - WHOLE - BILL 1101371 put it out for a City bid. Many times2 people assume that the state pricing is3 going to be better than the City pricing,4 but the City pricing does -- we do have5 very large purchasing power.6 So we moved it quickly, got it7 out there and got a lower price for the8 Juniper switches. Not only did we get a9 lower price from competitive vendors, but10 we got a lower price from the vendor who11 had the contract with the state.12 So there are times when we stop13 and we say, if we certainly have enough14 time -- we always prefer to put any kind15 of service or supplies out to bid before16 we piggyback off of another contract,17 even though piggybacking can be also cost18 savings.19 However, when it comes to your20 question specifically about can we do it21 in-house, we would have to rely on the22 expertise of the department. I can't say23 whether DOT can go fix video surveillance24 cameras. They would have to tell me that25 193 3/29/11 - WHOLE - BILL 1101371 or if they need to contract it out.2
I would go3 to the field of construction. Supplies,4 service and equipment is one level of5 scrutiny of contracts that go out.6 Professional services might be another,7 but one that clearly pops out to me is8 construction. We have a number of9 recreation centers in my district, the10 difference between us looking at11 renovating or fixing a roof or fixing a12 restroom for one of our recreation13 centers.14 What type of system, check and15 balance system, could we put in place16 with this type of legislation to say have17 you looked at whether or not you have the18 available workforce internally? And we19 can go up to everything as big as snow20 removal and say, Can we get the Streets21 Department and the Water Department22 because of the types of vehicles that23 they have, if they are in our inventory,24 is it cheaper to kind of do it in-house25 194 3/29/11 - WHOLE - BILL 1101371 versus -- and recognizing the expense of2 possible overtime versus contracting out.3 Is that type of system of analysis in4 place?5 DEPUTY COMMISSIONER STITT:6 We've recently started talking with the7 Managing Director's Office about doing8 cost analysis. We would have to work9 with a working group more than likely,10 because, once again, we would need the11 Streets Department's expertise and12 whether or not they have the capacity to13 take care of snowplowing. If they do14 indeed have the equipment, do they have15 enough of the equipment, would overtime16 put us over what we could contract out,17 and then also always making sure that we18 look at benefits, because that would have19 to come into the analogy.20
And this is21 not an attempt to micro manage. I want22 to say that clearly, but it is in these23 tough economic times, in these budget24 times that when we're talking about25 195 3/29/11 - WHOLE - BILL 1101371 whether or not brownouts are a preferred2 option to other things, we have to look3 at where we can find savings. And we do4 how much a year in Procurement?5 DEPUTY COMMISSIONER STITT:6 Through the Procurement Department7 through construction and through -- I'm8 sorry; services, supplies and equipment,9 I believe it's around 400 million, around10 that. Professional services is much11 larger than what comes through the12 Procurement Department.13
So if you14 look at both of those together, are we at15 a billion?16 DEPUTY COMMISSIONER STITT: I'm17 sorry?18
Are we at a19 billion dollars worth of purchasing in20 construction, supplies, services and21 equipment?22 DEPUTY COMMISSIONER STITT: No,23 we're not at a billion, Councilman.24
And25 196 3/29/11 - WHOLE - BILL 1101371 professional services?2 DEPUTY COMMISSIONER STITT:3 Professional services, I would say yes.4
I mean, all5 three together, would that be a billion6 dollars?7 DEPUTY COMMISSIONER STITT:8 Definitely.9
So that's10 real money. We're talking about real11 money. And if we do this, I do not want12 for one second to slow down or be a boil13 on the butt of progress, but I do want us14 to kind of take a look at how we spend15 our money. Your example of whether or16 not it was cheaper to piggyback purchase17 off of the state fleet and to find and18 discover it was cheaper to go out on your19 own is the kind of analysis that can --20 those pennies and quarters in a jar21 eventually add up.22 DEPUTY COMMISSIONER STITT: And23 we absolutely try to do that at every24 opportunity, once again, but we do have25 197 3/29/11 - WHOLE - BILL 1101371 to partnership with the departments.2
We're giving3 you a heads-up on Resolution No. 100848.4 When we do have the hearings, we will5 rely on your collective expertise to tell6 us how we're doing it. What we're trying7 to do is nudge you along to make us start8 to do that instead of other things that9 we can do to save money, and maybe in10 those economies, we spare ourselves11 future layoffs, future closures and12 things like that. So this is a friendly13 request to attempt to do that.14 Under your local purchase --15 I'm going to ask a question that probably16 Councilman Goode would like to pursue,17 but he has a birthday today and he's18 getting older, so he may have forgotten19 this part of it.20
Oh, it's23 Bill's birthday. I'm sorry. Both Bills,24 that's right.25 198 3/29/11 - WHOLE - BILL 1101371 But what I'd like to ask is, on2 contractors that violate, one of the big3 issues I believe under Goode's4 chairmanship of Commerce and Economic5 Development, the question was raised last6 year how many firms that were in7 non-compliance or found to be8 discriminatory were debarred. How many9 firms this year, a year later, have been10 debarred?11 COMMISSIONER ORTMAN: None,12 that I'm aware of.13
So are --14 COMMISSIONER ORTMAN: We would15 default it under, if requested to, by OEO16 and we are -- we have to investigate and17 that kind of thing. But to my knowledge,18 nobody has been debarred.19
So should20 this body believe that we've solved all21 of the inclusion problems and that there22 is no discrimination in the City of23 Philadelphia and, in particular, its24 procurement and all is well with the25 199 3/29/11 - WHOLE - BILL 1101371 world?2 COMMISSIONER ORTMAN: I would3 say --4
Don't answer5 that.6 COMMISSIONER ORTMAN: -- that7 there are vendors that are out there that8 aren't doing it correctly, but until it's9 brought to our attention, I wouldn't know10 about it.11
So, again,12 we have not debarred --13 COMMISSIONER ORTMAN: No.14
-- any15 single contractor under this year's16 fiscal year?17 Thank you, Madam Chair.18
Thank you.19 The Chair recognizes Councilman20 Rizzo.21 COUNCILMAN RIZZO:22 Commissioner, how are you?23 COMMISSIONER ORTMAN: Good,24 sir. How are you?25 200 3/29/11 - WHOLE - BILL 1101371
Could you2 please review -- again, thanks for being3 open to upgrading the legislation,4 whether it's just legislation or Charter5 change to make your shop -- your proof of6 doing more with less, is that the7 expression? You're fewer people, but8 you're doing more. So that's a really9 impressive accomplishment.10 COMMISSIONER ORTMAN: Thank11 you.12
The question13 that I have is the procurement cities14 around the country's policies on buy15 America. Could you tell me the16 restrictions that you have in able to buy17 products that aren't made in the United18 States?19 COMMISSIONER ORTMAN: The only20 restriction I'm aware of -- and I haven't21 looked at it for some time -- has to do22 with buying vehicles, and I think and you23 I discussed this in the past. It has to24 do with the Mexican-Canadian agreement.25 201 3/29/11 - WHOLE - BILL 1101371 I forget what it's called.2
But I think6 we're buying now from Mexico.7 COMMISSIONER ORTMAN: I think8 we've worked that out, but I don't know9 of any other examples that I can think10 of.11
The example12 is that there's going to be a problem13 down the road, from what I understand.14 You know that the Police Department fleet15 used to have the Ford Crown Victoria, and16 now that car has gone away, but there'll17 be eventually a product that Ford will18 have to replace it, but it's not yet19 available. If that's the case, how did20 we buy these Priuses that are made in21 Japan?22 COMMISSIONER ORTMAN: I have to23 go back and look at that. I don't know.24
Well, we25 202 3/29/11 - WHOLE - BILL 1101371 have. We very -- Health Department has2 got a bunch of them.3 My point is that Chevrolet is4 going to be building a new police car.5 It's called a Caprice. It was a name6 that they once had for that full-size7 car. I understand it's going to be made8 in Australia because they have a plant9 there that can accommodate that vehicle.10 From what I understand, based on your11 restrictions, you will not be able to buy12 the Chevy police car.13 COMMISSIONER ORTMAN: Like I14 said, I haven't had a look at that15 particular provision in three or four16 years. So I don't know the answer to17 that question at this point. I have to18 go and talk to Fleet and see if I can get19 you an answer.20
Well, they21 say it's not their issue. They say it's22 your issue.23 COMMISSIONER ORTMAN: It's an24 illegal issue.25 203 3/29/11 - WHOLE - BILL 1101371
My point2 being is, you can buy any product you3 want; the only thing you're telling me is4 you only have a restriction on vehicles?5 If you wanted to buy --6 COMMISSIONER ORTMAN: That's7 the only restriction that I'm aware of,8 yes.9
Well, I'd be10 interested to know, A, how did you get11 around buying the vehicle, the Prius12 that's, from what I understand, made13 outside the United States of America and14 why we might have a problem in acquiring15 this new police car if we choose that we16 even want it. It obviously --17 COMMISSIONER ORTMAN: I'll get18 you an answer and submit it to the Chair.19
Thank you.23 The Chair recognizes24 Councilwoman Brown.25 204 3/29/11 - WHOLE - BILL 1101371
Thank you,2 Madam Chair.3 Good afternoon.4 COMMISSIONER ORTMAN: Good5 afternoon.6
I'd like7 to follow up on Councilman Jones'8 question regarding debarment. Can you9 speak to why that hasn't happened. Is it10 because the infrastructure or procedures11 are not in place yet to deal with those12 contractors who violate, or what? Help13 me understand.14 COMMISSIONER ORTMAN:15 Procurement can only take action after16 it's been informed of reason to take17 action by departments or Law Department18 and we would be directed to debar19 somebody. We would process the20 debarment. It's not totally up to us to21 debar somebody.22
Okay.23 COMMISSIONER ORTMAN: It's a24 group effort and it has to be looked25 205 3/29/11 - WHOLE - BILL 1101371 into. It's a serious matter, because you2 debar somebody, they can't be with the3 City for three years, and some companies,4 you can literally put them out of5 business, and we need to be aware that6 we're exactly right in what we're doing.7
So what8 departments are involved in that process9 or procedure?10 COMMISSIONER ORTMAN: I11 would -- at this point, we haven't12 debarred or looked into debarment for13 quite some time, so I can't give you the14 100 percent answer, but I would believe15 the Inspector General would be one of the16 first.17
Thank you,22 Madam Chair.23 I won't mention the firm's24 name. There is a construction company25 206 3/29/11 - WHOLE - BILL 1101371 that there have been charges brought2 against. Is that not correct?3 COMMISSIONER ORTMAN: Say that4 again one more time.5
There is a6 construction company that have charges7 brought against it; is that not correct?8 COMMISSIONER ORTMAN: I believe9 there is, but I don't think they've been10 debarred yet.11
They have12 not been debarred yet, but they are in13 the process of debarment.14 COMMISSIONER ORTMAN: Okay.15
And if they16 are not in the process of debarment, then17 we will start our own legislative process18 toward debarment.19 COMMISSIONER ORTMAN: But it's20 out of our --21
Someone here22 could answer that question. I don't have23 to mention the firm's name.24 COMMISSIONER ORTMAN: I know25 207 3/29/11 - WHOLE - BILL 1101371 who you're talking about.2
Either they3 are or they are not.4 (Witness approached witness5 table.)6
Brian7 Abernathy, Chief of Staff to the Managing8 Director.9 To the best of my knowledge,10 yes, it is in process.11
Thank you.15 Thank you, Madam Chair.16 DEPUTY COMMISSIONER STITT: And17 they have been disqualified.18
So I also19 would like to push the needle a bit20 further around Councilman Goode's21 questions regarding those who have22 contracts, those who answer the questions23 where we want to know what the MBE/WBE24 goals are and then what actually25 208 3/29/11 - WHOLE - BILL 1101371 happened. I am not comfortable with it2 being forwarded to the Chair. That's a3 good thing. What we're going to ask the4 head of OEO, whoever is responsible for5 that, is that for every single remaining6 department coming before us, that that is7 a separate, stand-alone part of the8 testimony so that we see it at the time9 you're at the table, for the record.10 Okay?11 Another request I did make was12 that we also see as part of the testimony13 for every department the composition,14 breakdown of departments in terms of15 staff, staffing, what staff looks like at16 the managerial level or the leadership17 level or the mid leadership level and18 then what things look like at the staff19 level. Because, again, the prevailing20 question is, are those in leadership, are21 those who are in the ranks of leadership,22 does it look like Philadelphia.23 We know that Civil Service has24 a role in this, but we're also learning25 209 3/29/11 - WHOLE - BILL 1101371 that there are exempt positions. And2 when there's an opportunity for leaders3 and heads of department to make decisions4 around exempt positions, people of color5 and women are not getting a fair6 opportunity. So the only way we can get7 a handle on that is to see it in writing8 on paper.9 COMMISSIONER ORTMAN: Yes.10 We'll get it for you.11
Okay.12 DEPUTY COMMISSIONER STITT:13 Councilwoman, you do see in our testimony14 the breakdown between --15
Could you16 identify yourself for the record.17 DEPUTY COMMISSIONER STITT:18 Mary Stitt, Deputy Procurement19 Commissioner.20 You do see in our testimony21 that we have a breakdown of how many22 minority groups are represented and how23 many women are represented in our24 department, and we will, of course,25 210 3/29/11 - WHOLE - BILL 1101371 forward to you what the leadership looks2 like.3
Last8 year's -- let me get this right. Speak9 to, if you will, any connect, any10 relationship with the various chambers.11 We have the Greater Philadelphia Chamber,12 but other chambers where you can share13 opportunities between government and14 those chambers so that the membership of15 those organizations hear and hear what16 the pending opportunities are.17 COMMISSIONER ORTMAN: Well, as18 mentioned in our testimony, we have been19 going different places around the City.20 As far as the Philadelphia Chamber of21 Commerce, the actual meetings that OEO22 has arranged for doing business with the23 City that we attend as well are actually24 held in the Chamber, and they issue25 211 3/29/11 - WHOLE - BILL 1101371 information to their people to come to2 these meetings and learn a little more3 about what our process is like, what4 professional services are all about and5 so on. So that's an ongoing process.6
And what7 do you believe the yield has been, the8 yield, outcome?9 COMMISSIONER ORTMAN: It's very10 difficult to say, because I wouldn't11 know. I mean, if somebody is there and12 they get a contract a year later, I'm13 really not going to remember that I met14 them there. But the turnout has been15 excellent of the ones we've had so far.16 They've asked a lot of good questions and17 they're interested.18
Okay. I19 would offer as a recommendation something20 that Councilman Jones cares a lot about.21 It's important to do the work, but it is22 also helpful to know what the outcome and23 yield is on the back end, because then,24 of course, that drives whether or not the25 212 3/29/11 - WHOLE - BILL 1101371 effort is indeed worth it. So that would2 be helpful too going forward.3 COMMISSIONER ORTMAN: Yes,4 ma'am.5
You stated6 in last year's testimony that, quote,7 "Our vendor list is quite extensive." Is8 the OEO-registered vendors -- has that9 list expanded at all?10 DEPUTY COMMISSIONER STITT:11 Yes. The OEO registration has expanded,12 I was just told by their Executive13 Director.14
In what15 ways?16 (Witness approached witness17 table.)18
The OEO19 registry has been increased from 1,33420 companies in January of 2010 to 1,70821 companies as of last Friday. And so it's22 about a 28 to 30 percent increase. And23 the goal is to continue to grow the24 registry in the areas where we do not25 213 3/29/11 - WHOLE - BILL 1101371 have adequate number of companies to2 increase participation for certain3 commodities and services.4 So if you look at the numbers5 in terms of the breakdown, 45 percent of6 that registry are ethnic-based companies.7 Another 55 percent are women-based8 companies. So it's growing on both9 categories.10
So what11 structural changes have you made in your12 department to grow that number?13
Well, there14 have been a number of initiatives. We15 are working very closely with the Women's16 Business Enterprise National Council, who17 certifies firms, as well as the Minority18 Supplier Development Council. We're19 working closely with the PAUCP, SEPTA,20 the department within the state that21 certifies businesses. So the goal is to22 increase the level of communication23 across those organizations and to attract24 the companies that they are certifying.25 214 3/29/11 - WHOLE - BILL 1101371 One of the other things that2 we're working on is a few and no list.3
Few and no.6 There are lists of about 60 commodities7 that we buy across the City and we have8 few or no minorities or women in our9 registry that provide those products or10 services. So we've spent the last 1211 months communicating that list to various12 organizations and institutions to say, We13 need to have a sourcing strategy for14 attracting minorities and women to15 provide us these products and services.16 We also have Econsult doing an17 exploratory across the country to say do18 they exist anywhere, so that we know when19 we are looking at opportunities for new20 markets business development for21 minorities and women, here is an area22 that we have not been successful and that23 they may want to consider.24
That25 215 3/29/11 - WHOLE - BILL 1101371 speaks to a very interesting editorial2 that was written by Marc Morial,3 President of the National Urban League,4 within the last month wherein he talked5 about how the opportunity for women and6 minority-owned businesses is7 entrepreneurship. So if you have a need8 here, then there may be an opportunity9 for government or Department of Commerce10 to encourage entrepreneurship to then11 address these needs that have been12 identified.13
So I share15 that, because I just read a synopsis of16 that report wherein entrepreneurship is17 the way to put a lot of our citizens to18 work when the jobs are just not there.19 So could you circulate that to20 the Chair so that members of Council can21 see that few or no list?22
Oh,23 absolutely. And it's also on our24 website, but we'll be happy to share it25 216 3/29/11 - WHOLE - BILL 1101371 with you.2
Okay.3 Last year also someone talked about how4 in each department there is an identified5 procurement official who handles the duty6 and the functions of OEO to make sure the7 type of concerns raised by Councilmembers8 are happening systemically. So what's9 the status of that?10
Last May, the11 Mayor approved OEO officers for each12 operating department. So we have13 officers that we actually meet with on a14 monthly basis to talk about how OEO15 operates, where the opportunities are16 within the operating departments in terms17 of their contracts that will be coming on18 the horizon. The goal is to plan ahead19 so that we not only anticipate what the20 needs are but are identifying companies21 that can respond to those needs when the22 RFP or the bid is put on the street.23 So in addition to the program24 that he mentioned doing business with the25 217 3/29/11 - WHOLE - BILL 1101371 City, Let's Get Started -- that's the2 full name -- we are providing information3 and opportunity to those companies. We4 have departments, in addition to5 Procurement, we have License and6 Inspection, we have Finance, we're7 talking about -- and we have PIDC for the8 Emerging Loan Program. So the goal is to9 build an infrastructure for these10 companies to not only provide them with11 information, but support to enter into12 doing business with the City.13
Thank you.14 On the enforcement end, I'm still15 learning, let me just say for the record.16 Who is responsible for ensuring that17 what's put on paper is then reviewed to18 see and make sure what's put on paper is19 actually real? Where does that function20 lie?21
Well, it lies22 within the operating departments who are23 living with those companies on a daily24 basis and it also lies with OEO to follow25 218 3/29/11 - WHOLE - BILL 1101371 up with those companies to make sure that2 there are subcontracts in place, to make3 sure subcontractors are being paid when4 the primes get paid. And so we are5 working on a system that will be6 implemented shortly. It was mentioned by7 the Department of Technology. That8 system will enable us to once we enter9 contracts, we have participation that we10 can --11
Exactly. So14 it will not only report participation, it15 will report payments, and then16 subcontractors will also be able to17 confirm they have been paid.18
So do you19 suspect that we'll be at a different20 place a year from now when we're talking21 budget and departments as relates to this22 issue?23
Okay.25 219 3/29/11 - WHOLE - BILL 1101371 Thank you.2 I'm done. Thank you very much.3 Thank you, Madam Chair.4
Thank you.5 Let me just ask one question6 before we call on the next Councilmember.7 On of your testimony you talk8 about the Department is responsible to9 certify local business entities that may10 qualify for the five percent bid11 preference on contract awards. How12 successful is this? Are we gaining more13 local businesses in terms of14 participation because of this preference?15 COMMISSIONER ORTMAN: Well, the16 participation and LB are two separate17 things.18
Well, they19 qualify for five percent bid preference20 on contracts.21 COMMISSIONER ORTMAN: But it22 has nothing to do with -- there's less23 awards in the last couple of years than24 in previous years when the program first25 220 3/29/11 - WHOLE - BILL 1101371 got started. I can't tell you that's2 because of less bids, which there have3 been because the budget hasn't been that4 great. But we have 153 companies that5 have submitted for the preference and6 have received a preference. As I7 mentioned in the bid, a few of them are8 not qualified anymore. So it's been a9 semi-successful program, yes.10
Okay.11 Thank you very much.12 COMMISSIONER ORTMAN: You're13 welcome.14
You took the17 words right out of my mouth, Madam Chair.18 I would like to know how many19 bids went out and were successfully20 awarded with the preference of local21 bidding.22 COMMISSIONER ORTMAN: We do23 submit that to the Chair every January,24 but I do believe I have that here.25 221 3/29/11 - WHOLE - BILL 1101371
I know it's2 not January, but --3 COMMISSIONER ORTMAN: I know.4 I got it right here.5 Let's see here. This is done6 by calendar year, not fiscal year.7
That's fine.8 COMMISSIONER ORTMAN: For9 calendar year of 2010, there were three10 bids awarded because of the preference,11 which --12
Out of how13 many? Three out of?14 COMMISSIONER ORTMAN: These are15 all awarded to public works contracts or16 public works bids. There were 104 bids17 that went out, I believe.18
So three out19 of 104, approximately?20 COMMISSIONER ORTMAN: For21 public works, yes. These three were all22 public works. There were none in SS&E.23
Okay. That24 says that we have to figure more creative25 222 3/29/11 - WHOLE - BILL 1101371 ways to get the local economy stimulated2 through your activities without violating3 any state procurement laws, and I'll say4 that two times, without violating any5 state procurement laws.6 DEPUTY COMMISSIONER STITT:7 Could I add to that, Councilman?8
Yes.9 DEPUTY COMMISSIONER STITT:10 That doesn't mean -- if three out of the11 104 were awarded the bid based off of the12 preference doesn't mean that -- some of13 that 104 could have definitely been local14 businesses that were the lowest15 responsive and responsible bidder and16 didn't need the preference. They were17 low anyway.18
So as you19 provide the information, I'd like to take20 a look at that.21 DEPUTY COMMISSIONER STITT:22 Okay.23
How many of24 your contracts are requirements25 223 3/29/11 - WHOLE - BILL 1101371 contracts? And explain to the body and2 those listening what a requirements3 contract is.4 COMMISSIONER ORTMAN: SS&E5 contracts and -- by virtue of what public6 works contracts are, they're7 requirements, is they continually are8 ongoing. SS&E, I would say 95 percent9 are probably requirements contracts. We10 even do vehicles on requirements11 contracts now.12
So is that13 up from maybe a couple years ago?14 COMMISSIONER ORTMAN:15 Percentage-wise or numbers-wise?16
I'm saying17 the number of contracts that fall --18 before, just for everyone's, you could19 buy a pencil and every department could20 buy that pencil. Some bright Procurement21 person decided that we're going to buy22 pencils bulk and you draw down on the23 requirements as needed. That makes sense24 in a lot of categories, but what it also25 224 3/29/11 - WHOLE - BILL 1101371 does is makes it more available for as2 Staples to bid on, because they can buy3 in such bulk that a small business can't4 be competitive with the price. And I'm5 okay. I at least understand that,6 because we as a city can't afford not to7 do it that way.8 The question I guess I have is,9 how many of those contracts do we have?10 How often are they renewed and to give11 new businesses an opportunity to at least12 take a shot at it? And so when I asked13 how many of those and are they up over14 the years, is the question I would have15 for you guys.16 COMMISSIONER ORTMAN: Well,17 most of the requirements contracts we18 have out there have one contract year19 initially and three options to renew for20 the next three years, and that's totally21 at the option of the City. It's not22 automatic. There are many times that we23 haven't renewed them for one reason or24 another.25 225 3/29/11 - WHOLE - BILL 1101371
But could2 you give us a list of all of them so3 that -- I mean --4 COMMISSIONER ORTMAN: Oh, yeah.5
And I'm6 going to give you a perfect example of7 where it works out well. You buy our8 fleets' gasoline, correct?9 COMMISSIONER ORTMAN: Correct.10
And that's11 done on a requirements contract, right?12 COMMISSIONER ORTMAN: Right.13 That's only a one-year contract, though.14
But at the15 beginning of the year, gas was $2 a16 gallon. It is now close to -- so whoever17 did that contract is a genius and18 deserves the Philadelphia award, because19 we're not paying for that increase and20 spike in gas, correct?21 COMMISSIONER ORTMAN: He just22 retired on the DROP program. He's gone.23 But he's responsible for it. Bob Fox has24 done a great job with that over the25 226 3/29/11 - WHOLE - BILL 1101371 years.2
Over the3 years we've been able to hold down4 fluctuations in price through5 requirements contracts. So I'm not6 against them. I just want to know where7 we have them, because that does have8 maybe an unintended impact of limiting9 the number of local firms or small10 businesses that can participate in that11 bulk.12 COMMISSIONER ORTMAN: Well, you13 mention small businesses. There were14 900-and-some SOPs that went out, small15 order purchases, in FY10, and those16 specifically go to small businesses and17 vendors that are registered with OEO.18 They are most all of them -- I shouldn't19 say all. I would say, again, 95 percent20 are -- opposite of requirements is 9521 percent are firm limited. So those are22 continually going out each year.23
So would you24 give us a breakdown, an estimate on how25 227 3/29/11 - WHOLE - BILL 1101371 many dollars go into that segment of2 contractors?3 COMMISSIONER ORTMAN: Which4 segment do you want, the first one or5 this one?6
Small7 business purchases.8 COMMISSIONER ORTMAN: Yes. We9 have total dollars, over $6 million.10
Thank you14 very much.15 Are there any other questions?16 (No response.)17
Thank you18 very much.19 COMMISSIONER ORTMAN: Thank20 you.21 DEPUTY COMMISSIONER STITT:22 Thank you.23 (Witnesses approached witness24 table.)25 228 3/29/11 - WHOLE - BILL 1101371
We're2 going to now hear from the Managing3 Director's Office.4 Good afternoon.5
Would you7 like to proceed. Identify yourself and8 proceed with your testimony.9
Good afternoon,10 Chair Councilwoman Tasco and members of11 Council. I am Rich Negrin, Managing12 Director and Deputy Mayor for13 Administration and Coordination of the14 City of Philadelphia. It is my pleasure15 to be here this afternoon. 19 Over the course of Fiscal Year20 '11, the Managing Director's Office, MDO,21 has undertaken a series of initiatives,22 very important ones; for example,23 PhillyRising, a program which partners24 with City departments and other agencies25 229 3/29/11 - WHOLE - BILL 1101371 to prioritize, plan and deliver services2 required to address chronic crime and3 quality of life issues. We have also4 worked very diligently over the last year5 to improve the service of our 3-1-1 call6 center, which has virtually a 93 percent7 positive rate. We've expanded and8 internally relaunched what we call9 PhillyStat, our performance management10 accountability program, to measure and11 improve citywide operations. We've12 expanded our great language access13 program, Global Philadelphia, which aims14 to make government readily accessible for15 Philadelphians who have limited English16 proficiency. 3 And I want to add that I4 appreciate Thomas Conway wearing a suit5 today. 7 Little unusual. 9 Before I continue with my10 testimony, I want to take a brief moment11 to discuss my special commitment to12 diversity. 23 To show the MDO's commitment to minority,24 women and disabled businesses in City25 231 3/29/11 - WHOLE - BILL 1101371 contracting, during Fiscal Year '11 my2 office has achieved a 23 percent3 participation rate, a significant4 improvement over our Fiscal Year '105 numbers. The MDO's Fiscal Year '126 participation goal is 25 percent. 10 I've heard questions about11 staffing. Almost 60 percent of the12 current MDO's workforce comes from a13 minority background, the majority of14 which, 46 percent, identified themselves15 as African American, nine percent16 Hispanic, of which I am one. To show the17 MDO's commitment to women, 60 percent of18 our active workforce is composed of19 women. And to ensure meaningful access20 to City services for all Philadelphians,21 including immigrants and individuals with22 limited English proficiency, Global23 Philadelphia is committed to24 strengthening the relationship between25 232 3/29/11 - WHOLE - BILL 1101371 diverse linguistic communities and the2 City government by ensuring that English3 language proficiency is not a barrier in4 accessing essential City services. 10 The MDO Fiscal Year '12 budget11 has been reorganized to include two12 additional divisions. The first, as I13 mentioned, is Animal Control, which will14 be transferred from the Department of15 Health to the MDO. 4 million for this year. 56 million is allocated for the Youth7 Violence Reduction Partnership; 500,0008 is allocated to fund personnel costs9 associated specifically with PhillyRising10 to make sure that we can expand the11 program across the City. More than12 200,000 is allocated to fund personnel13 costs under the Mayor's Office of14 Sustainability for three critical staff15 members, who are currently funded through16 a federal grant set to expire in June of17 this year. 4 million of24 this amount. 6 million is derived3 from the General Fund. The4 Administration Division provides policy5 direction, reviews efficiencies and6 ensures accountability for the delivery7 of City services. 21 This is a new model for neighborhood22 service delivery in Philadelphia. Under23 the leadership of Deputy Managing24 Director John Farrell, PhillyRising works25 235 3/29/11 - WHOLE - BILL 1101371 to partner with residents in developing2 strategies to help them combat chronic3 crime and quality of life issues that4 continue to plague our neighborhoods. 16 We are also seeing an impact on crime;17 most notably, an almost 16 percent18 decrease in serious crime between19 February and December of 2010 from the20 previous year.
These successes are21 achieved by better coordination rather22 than the expenditures of significant23 resources. 24 I also want to add that just25 236 3/29/11 - WHOLE - BILL 1101371 yesterday I attended the Citizen2 Engagement Academy, which was the first3 graduation we had for ten members of that4 community, who actually took a six-week5 program to learn all about City services,6 what they can and cannot do. It was a7 pleasure to see Mayor Nutter there8 actually offering them their9 certificates. They were so proud. 13 The investment we have14 requested for PhillyRising will allow us15 to expand the program over the course of16 Fiscal Year '12. The vast majority of17 our request, $547,000, will fund the18 salaries of seven staff members who19 handle day-to-day operations for targeted20 neighborhoods. Six coordinators will21 each be assigned to one of the six police22 divisions. These coordinators will be23 responsible for bringing PhillyRising to24 communities within their borders, and25 237 3/29/11 - WHOLE - BILL 1101371 they will reach troubled neighborhoods2 across the City. 7 During the past fiscal year,8 the MDO, under the program administration9 of Assistant Managing Director Catherine10 Lamb, has redesigned internally the11 PhillyStat model to better improve12 departmental performance and provide13 accountability. The new PhillyStat model14 focuses on achieving outcomes that matter15 to residents while simultaneously16 focusing on improving the internal17 efficiency of City government. 22 Global Philadelphia, a program23 overseen by Assistant Managing Director24 David Torres, is the City's language25 238 3/29/11 - WHOLE - BILL 1101371 access program. Global Philadelphia's2 primary focus, as I mentioned earlier, is3 the building of a sustainable4 infrastructure within and across5 departments to ensure meaningful access6 to City services for all Philadelphians,7 including individuals with limited8 English proficiency. 20 The MDO's Administrative21 Division also includes the coordination22 of special events overseen by Deputy23 Managing Director Jazelle Jones. 7 Philly 3-1-1, under the8 leadership of Deputy Managing Director9 Rosetta Lue, is the City's non-emergency10 call center and walk-in facility. 912 million of the MDO's budget. 19 It is now available to all City20 employees. The Academy provides a21 variety of training to City employees; in22 particular, those who have regular23 interaction with the public, to improve24 their customer service skills. Since its25 240 3/29/11 - WHOLE - BILL 1101371 launch, over 400 City employees have2 attended various courses. The feedback3 on this program has been incredibly4 positive. And those 400 employees have5 been trained just within this past6 calendar year. So it's making a lot of7 headway. My goal would be that every8 department within the Administrative9 group who has interaction with the public10 goes through that training so that when11 people call the City of Philadelphia,12 they have a positive customer service13 experience. 15 Philly 3-1-1 has taken almost 316 million calls -- I believe in April we17 expect to hit 3 million -- since its18 inception in December of 2008, providing19 all callers with an easy way to access20 and navigate City-related services. At21 the start of Fiscal Year '11, 3-1-1 was22 nationally designated as a citizen23 engaged community by the Public24 Technology Institute, something we're25 241 3/29/11 - WHOLE - BILL 1101371 very proud of. Citizen engagement during2 the year included training close to 2003 Philadelphia residents to become 3-1-14 neighborhood liaisons. 8 million of the13 budget. This is a direct transfer of14 General Fund monies from the Department15 of Health to the MDO. 18 And I notice that Councilman Kelly is19 here.
23 With the help of Deputy24 Managing Director Bridget Greenwald and25 242 3/29/11 - WHOLE - BILL 1101371 Finance Director Rob Dubow, the MDO, in2 collaboration with various City3 departments, have developed a4 comprehensive strategy to address the5 City's vacant property situation. To6 date, we have engaged many internal and7 external stakeholders in the vacant8 property conversation, including9 Council's Committee on Housing,10 Neighborhood Development and the11 Homeless, focusing our efforts on the12 disposition of City-owned property, the13 maintenance of vacant land, the14 acquisition and tax policies surrounding15 vacant property, and establishing an16 accurate vacant property inventory. 7 million24 is derived from the Grant Fund. 4 million is requested9 for Fiscal Year '12. 12 Under the supervision of Deputy Managing13 Director Thomas Conway, the CLIP program14 continues to improve the appearance and15 image of the City of Philadelphia. 20 The Health and Opportunity21 Division constitutes a small portion of22 our budget. The proposed allocation for23 this division is $540,000, all of which24 is derived from the General Fund. 3 The Mayor's Office of4 Sustainability constitutes the majority5 of the Economic Development Division of6 the MDO budget. 18 million. 3 million is10 generated from Grants Revenue. The11 General Fund reflects an increase of12 218,000 in Class 100, which is directly13 related to the transition of three14 critical positions from a Department of15 Energy grant to the General Fund. 2
Thank you3 very much.4 On of your budget5 detail, it reflects that you are6 requesting an increase of 23 full-time7 General Fund employees. Can you tell us8 how many of these positions and their9 value that you wish to transition from10 Grants Revenue Fund and the service11 impact if they were not funded?12
Good afternoon,13 Madam President. Dave Wilson, First14 Deputy Managing Director.15 From that 23, there are roughly16 five positions that are Grant funded that17 will need to be transferred over.18
Could you19 give us a breakdown? Did you give us a20 breakdown in your testimony of those21 positions?22
I do not believe23 there was a breakdown in the testimony,24 but I'd be more than happy to give you a25 246 3/29/11 - WHOLE - BILL 1101371 breakdown for that.2
Thank you6 very much.7 The number of positions being8 transferred to your office from other9 agencies -- what are the number of10 positions being transferred to your11 office from other City agencies and their12 value?13
The number of14 positions transferred would be five, and15 that total value would be, I believe16 it's, $165,000.17
What are18 the number of the new positions and their19 value that you are requesting?20
The number of new21 positions that we're requesting would be22 six.23
Those are the five24 PhillyRising positions and the one that25 247 3/29/11 - WHOLE - BILL 1101371 we anticipate, Animal Control position.2
Five from3 the Grants, five from other departments4 and six new ones?5
The remaining9 positions would be positions that we've10 already brought on based on an increase11 to our target budget. So these are12 positions that are currently part of the13 MDO, but we were able to bring them on14 because of the increase in our target15 budget.16
I think it24 would be better to kind of sort of lay it25 248 3/29/11 - WHOLE - BILL 1101371 out as to really what you're doing, the2 new people, what's being transferred to3 your department would be better.4
Thank you.6 On of your detail,7 you're requesting $50,000 in new funding8 for public service areas. How will these9 funds be used, and what are public10 service areas?11
The PSA is public12 service area, which was the platform in13 which PhillyRising was built on. So what14 you see there is a request that I believe15 is subsumed under the PhillyRising16 request. So the PSA was where the idea17 for PhillyRising came from. So that's18 what that refers to. The PSA is19 police -- it's a police service area. I20 don't like the name. I think we all know21 that PSA is a public service22 announcement. So we've grown the23 PhillyRising program out of the PSA24 piece, but that's what that's25 249 3/29/11 - WHOLE - BILL 1101371 referencing. It's referencing what2 PhillyRising used to be before we3 expanded it and pulled in all these other4 agencies.5
On of your testimony, you mention your7 Health and Opportunity Division. Can you8 tell us what services they provide and9 the benefit to the City?10
That entire11 funding -- Brian Abernathy, Chief of12 Staff to the Managing Director.13 That funding funds five14 positions, two Deputy Mayors, their Chief15 of Staff and two Administrative16 Assistants.17
Mike24 DiBerardinis is also funded in that line25 250 3/29/11 - WHOLE - BILL 1101371 item.2
Deputy Mayor5 Schwarz's Chief of Staff, Susan Kretsge,6 is also funded through that, and there7 are two Administrative Assistants.8
No. This is12 General Fund money.13 (Witness approached witness14 table.)15
Don Schwarz. I16 am Deputy Mayor for Health and17 Opportunity.18 So this includes my salary, the19 salary for my Chief of Staff, who20 coordinates a fair amount of the work21 that we do across departments and new22 initiatives that are initiated through23 our office and analyses that are done.24 One person is my secretary, my assistant,25 251 3/29/11 - WHOLE - BILL 1101371 and the other is a vacant position at the2 moment for an Administrative Assistant or3 a secretary.4
Okay.5 Thank you. Thank you very much.6 The Chair recognizes Councilman7 Rizzo.8
Thank you.9 Thank you, Madam Chair.10 Managing Director, I was11 pleased to hear -- but I don't think I12 got all of it -- your interest and13 concern about language barrier, and that14 leads me to something that I think is15 very important, and it's the hundreds of16 e-mails that maybe you've received about17 the Police Advisory Commission. I know18 I've received them. You do control the19 budget for that Commission. So what I'm20 asking is that it seems reasonable with21 the language barrier that many people22 have, especially in such a sensitive area23 of potentially a complaint against a City24 employee, that you want very clear25 252 3/29/11 - WHOLE - BILL 1101371 communication. I'm not suggesting that2 everyone that approaches the Police3 Advisory Commission can't communicate in4 English, but they maybe can't communicate5 to the degree with the fine detail. And6 I think it's a reasonable request that a7 Hispanic or Latino, population growing8 the way it has, that truly to have a9 Spanish-speaking interpreter,10 investigator is very reasonable and I11 think you would want, based on what I12 heard about 20 minutes ago, to have in13 place there, because the last thing you14 would want to have is a lack of15 communication between the non-speaking --16 you understand where I'm coming from17 here?18
What can we20 do? Because if someone asked me does the21 Police Advisory Commission have an22 interpreter or investigator that can23 speak Spanish, I'd say absolutely.24 They'd have to. So my appeal to you is25 253 3/29/11 - WHOLE - BILL 1101371 to make that happen.2
Yes. That's the3 short answer. The longer answer is,4 we're going to go back to doing it the5 way it was done. We had an individual in6 that position. What happened was, they7 left. We're committed to making sure8 that there's someone down there who is --9 the question is whether it's going to be10 someone who is full time or not. I don't11 know if that's the commitment we're12 willing to make. I think we have to13 figure out exactly what the best approach14 is, but we're committed and we share your15 concern. And I especially on a personal16 level understand the need to have someone17 there who can speak the language of the18 individuals in the community who are19 looking to bring legitimate complaints20 against Police. So we will make sure --21 I know Everett is here if you have more22 questions, but I know he is deeply23 committed to making sure that those24 complaints get heard and that they're25 254 3/29/11 - WHOLE - BILL 1101371 addressed and that there's a great2 mechanism in place to make sure that3 nothing falls through the cracks because4 of language.5 When I received a number of6 these e-mails last week -- and7 Councilwoman Quinones was the first, I8 think, to bring this to my attention -- I9 sent this to David Torres in my office,10 who, as I said earlier, is in charge of11 Global Philadelphia. And David has been12 working with Everett's office and his13 individuals to make sure that we can14 fulfill those needs, even if there's a15 temporary solution around linking some of16 the stuff we do with Global Philadelphia17 with what's going on at the Police18 Advisory Board to make sure that we have19 a short-term fix and then do what we can20 to make sure there's a long-term fix by21 having someone who is there and22 available.23
And I don't24 think just the interpreter part is the25 255 3/29/11 - WHOLE - BILL 1101371 entire request. I think the2 investigative skill is important, because3 as a result of the complaint, there needs4 to be, I'm sure, interaction with a lot5 of other people that may need someone6 that has the ability to speak Spanish7 but, equally important, has the ability8 to conduct an investigation. A lot of9 people could interpret, but having the10 skill set to be the investigator is also11 very important.12
I think that's13 exactly right, and I think it goes beyond14 the investigatory piece. I think there's15 a cultural awareness and a sensitivity16 around how people interact with the17 Police. The Hispanic or Latino18 experience with the Police is very19 different than the African American20 experience with Police. There needs to21 be a very profound understanding of what22 that is and what those differences are in23 order to better serve the community.24
If you could25 256 3/29/11 - WHOLE - BILL 1101371 get back to us when you and the Deputy2 Mayor get this resolved, because I think,3 honestly, I think it's an obligation to4 do this the right way.5
And I thank7 you for being both open to resolving this8 problem.9
Thank you.13 The Chair recognizes Councilman14 Jones.15
You're20 welcome.21 First of all, let me say that22 PhillyRise wasn't just in Darrell23 Clarke's district. I happen to know on a24 Saturday morning, see a cast of25 257 3/29/11 - WHOLE - BILL 1101371 characters out in my district providing2 services at a grassroots level, which we3 haven't seen for quite some time in the4 community, and that area was very5 grateful to see government responding,6 not in a top-down manner but in a7 bottoms-up manner. So we're thankful for8 that and the participation and follow-ups9 from everything from alley cleanings and10 Tommy Conway and others that have been a11 part of my district for quite some time.12 So North Philly doesn't have all of the13 fun. West Philly has some of the fun as14 well.15 I would like to ask16 Mr. Abernathy -- and it's always good to17 see you back in Council Chambers. You18 were aggressively working on a property19 acquisition/disposition process last year20 and I wanted to know where we were with21 that by way of City-owned properties,22 vacant properties, and have we gotten our23 arms around that process.24
Thank you,25 258 3/29/11 - WHOLE - BILL 1101371 Councilman. As you know, that process2 involved a number of different3 departments, and it's a large project.4 We're continuing to work through some of5 the outstanding issues, continuing to6 work through a number of details that we7 certainly will be bringing back to this8 Council through Councilwoman Blackwell's9 committee going forward, hopefully within10 the next month or so.11
I mean,12 that's very important. As we start to13 look to the light at the end of the14 tunnel by way of this recession, we start15 to look at, God forbid, construction. So16 site acquisition and site control become17 very important. So we'd like to probably18 take a look at that. As the market eases19 and banks start to lend, businesses start20 to grow, we want to be able to put forth21 some of those properties in a way that,22 A, gives us revenues. I mean, if I look23 at Market Street as an example of24 wonderful construction with the El after,25 259 3/29/11 - WHOLE - BILL 1101371 what, seven to ten years of construction2 we have -- we are experiencing 40 percent3 abandonment under that between 59th and4 63rd. So that property5 acquisition/disposition process becomes6 critical to us. We don't want to wait7 until the economy gets better and then we8 don't know how to move properties for9 developers. So I anxiously anticipate10 you wrestling that bear, and I know11 you're very capable of doing that.12 One of the things that I want13 to -- you talked about the new PhillyStat14 and how that's working. One of the15 things that I talked about beyond16 PhillyStat, which might have been a part17 of -- well, it was a part of a18 procurement model that we used to attract19 over 2 billion, billion with a B, dollars20 in opportunities from the stimulus21 package, and I wanted to encourage us to22 continue that model to look at federal,23 state opportunities and to kind of pull24 together the eclectic number of talents25 260 3/29/11 - WHOLE - BILL 1101371 that were sitting around that table to2 try to get more revenues, more programs,3 more dollars into our caucus and wanted4 to know if indeed -- I know the stimulus5 package is sunsetting, but opportunities6 under another name are just as good, and7 as we start to count quarters in the8 couch, we really need to stay focused as9 to what is available that we can take10 advantage of here in Philadelphia from11 Washington, DC and in the state. I12 wanted to know if you're going to pursue13 that model.14
As part of the new15 model -- and I can let Cat Lamb kind of16 brief you on the two different models.17 Part of what we call PhillyStat Ops is18 one of the things I'm asking my19 operational teams to do. It's the first20 time that we're doing what I would21 call -- it's something I've used in the22 private sector. It's more of a corporate23 ops model that is very different than24 what we've done in the past. So as part25 261 3/29/11 - WHOLE - BILL 1101371 of this model, one of the -- we're2 looking at the departments in five broad3 areas. Their operations, so key metrics4 on their performance on their operations.5 Their finances. When we look at their6 finances, we're looking with how they're7 tracking to their budget, what are their8 revenue opportunities, what are their9 grant opportunities. We're talking about10 including in that process how they're11 doing with their Recovery fund spending,12 because you need to spend it in order to13 utilize all of that. Maari Porter and I14 have had some conversations about that.15 She's our Recovery Officer.16 We're looking at HR as another17 broad area. We're looking at Technology18 as another broad area. And then a big19 focus for me has been customer service.20 So we're creating very similar to how we21 have integrity officers in different22 departments that have helped move the23 needle around integrity, we're creating24 customer service officers who look at25 262 3/29/11 - WHOLE - BILL 1101371 what are the key metrics on how we're2 touching people's lives through response3 times, through how the call center is4 operating.5 So your suggestion I think is a6 great one, and I think it's something7 that we can incorporate into the8 financial piece of what we're doing so9 that we're not just doing key metrics10 around four or five kind of key11 operational things, we're looking at the12 entire department and getting a snapshot13 in time of how they are at least on a14 quarterly basis so that we understand the15 general health of the department across16 the spectrum of those five broad areas.17
Catherine Lamb,18 Director of PhillyStat.19 Councilman, I just want to say20 thank you for bringing up ARRA, because21 it's been a great pleasure of mine that22 actually the redesign of PhillyStat has23 been a close collaboration between our24 office and the Department of Finance. In25 263 3/29/11 - WHOLE - BILL 1101371 particular, we've been working very2 closely with Maari Porter, who is the3 Recovery Officer, as well Anna Wallace,4 who is the Deputy Budget Director. So5 we've definitely heard lessons that she6 learned and that the people in the7 Recovery Steering Committee learned8 during that and is something that we are9 working into this model.10
I just think11 that we did so well, did not have any12 major problems with the federal13 government, which is amazing considering14 the number of sources that those RFPs15 were coming from, and we kind of moved it16 through the machine of bureaucracy in a17 way that we actually had outcomes. Now,18 could we have done it better? Could we19 have put the cart before the horse?20 Could we have found ways to match21 employment? Yeah, we could have done it22 better, but we did it better than many23 municipalities. Many municipalities left24 money on the table because they were25 264 3/29/11 - WHOLE - BILL 1101371 unable to quickly respond to the2 opportunities that the federal government3 offered in a way that was compliant with4 their rules and regulations, of which5 there were many.6 So I'm just saying to you --7 I'm just saying that we should, to coin a8 phrase, that we should really take what9 works and build upon it. And you can10 call it stimulus, you can call it11 Recovery, you can call it whatever, but12 call it revenues to the City of13 Philadelphia. And if we maintain that14 model and maintain, more importantly, the15 context that we established at the16 federal levels to think of Philadelphia17 first when they're coming out with a beta18 testing of a new type of program or some19 relief -- and there will be fewer, but20 there will be many still, and I want us21 just to be on the cutting edge of the22 receipt of those kinds of dollars,23 working with our Philadelphia delegation24 at the congressional level.25 265 3/29/11 - WHOLE - BILL 1101371
I wanted to add to3 that briefly. Your point about4 incorporating it into PhillyStat is5 really important, because it's less about6 the system and the process than it is7 about asking the question and paying8 attention to it.9 One of the things that I think10 we need to do as we have these11 conversations and we can do that -- it12 starts in PhillyStat, but it needs to13 permeate through the departments -- is --14 I ask my folks when we talk about new15 initiatives and programs, I ask the16 question every time, are there grant17 funds available. And I don't know if we18 all do that. And that needs to become a19 part of what I think I'm hearing from20 you, a part of our DNA.21 I know Rosetta Lue from 3-1-122 has a Knight Foundation grant that she's23 in consideration for right now that if we24 win will be a substantial revenue25 266 3/29/11 - WHOLE - BILL 1101371 enhancement to what she's trying to2 accomplish in 3-1-1, and it's really3 around citizen engagement.4 Those opportunities are out5 there. We need to be able to identify6 them. She identified that on her own7 because she had that initiative. I'm not8 sure that we're all speaking the same9 language around that, but we certainly10 are.11
Well, I can12 tell you, I sat on the other side of this13 table in the mike where you're sitting,14 and every year as soon as just like15 Christmas holidays, the Mayor of whatever16 Administration was asking for three to17 five percent in way of cuts. I mean, it18 was just a part of our Administrations19 being. And what we were able to do is20 three to five percent in new RFPs and21 initiatives. We would go out and find22 that, so -- and it kind of balanced out.23 So new money replaced old money that we24 were asked to give back or cut or cut25 267 3/29/11 - WHOLE - BILL 1101371 back on this, and those things actually2 helped us keep pace with some of the3 right sizing, if you would, of4 government. We were able to look at new5 opportunities that we were qualified for.6 And we weren't going out and doing7 chicken dinner sales. I don't mean for8 us to do that, but if we're looking at --9 for example, Councilman Kenney put forth10 a bill about different types of11 impervious and pervious surfaces that12 could be rubber sidewalks, which I think13 is just futuristic and fascinating, but14 is there a companion grant, RFP, to15 utilize recyclable materials somewhere16 that we could take advantage of to kind17 of do the beta testing for. If we think18 like that, we can kind of augment a19 number of budgets around the City by an20 RFP committee that comes in a judicious21 way and tries to make it better for the22 department and work with the department23 to add resources and program delivery in24 the meantime.25 268 3/29/11 - WHOLE - BILL 1101371 So I'm just -- as long as2 you're thinking that way, I'm glad to3 hear that.4 Thank you, Madam Chair.5
Thank you,9 Madam Chair.10 Good afternoon, Mr. Negrin.11
I'm asking13 the same list of questions to each14 department. The first is, what's the15 largest contract that you will award in16 Fiscal Year '12?17
Sure. Well, for18 us it's a little different in the19 Managing Director's Office. There are20 contracts that we administer that we21 don't have direct programmatic control22 over that we're sort of the back office23 for. So in terms of contracts that we --24
I'm actually25 269 3/29/11 - WHOLE - BILL 1101371 more concerned over which contract --2 what's the largest contract that you3 control the RFP process for.4
And that's where I5 was going to go. Of the largest contract6 that we control and manage and control7 the RFP process, that would be on the8 non-profit side, it's the Health9 Federation of Philadelphia, just under a10 million dollars, and that's part of11 Global Philadelphia. And they are a12 state-certified MBE. They are currently13 in the process of becoming a local MBE.14 And then on the profit side, it's15 TransPerfect Translations, is the name of16 the company, just under 200,000, and that17 again is part of Global Philadelphia.18
Let's take19 the Health Federation contract. Is that20 a renewable contract?21
And when was24 it last bid?25 270 3/29/11 - WHOLE - BILL 1101371
So how many3 years have they held the contract? Just4 for one year?5
The requirements10 are for the Health Federation to provide11 language access services, including12 telephonic, in-person interpretation,13 proofreading and other items related to14 interpretation services for LEP15 populations.16
And so it's17 in the process of being certified18 locally, but has state certification?19
And in the21 RFP that was issued, was there a22 participation goal that was set?23
I believe there24 was, Councilman. I'm not certain that it25 271 3/29/11 - WHOLE - BILL 1101371 was, but I can -- if I could get back to2 you on that and let you know.3
If you could4 just submit that through the Chair.5 Actually, this is a very interesting6 question now. Because a DBE was actually7 selected, what goal is actually put in8 the contract?9
Again, I'm not10 certain at this point. I can11 double-check that for you and get it back12 to the Chair.13
If you can14 submit that through the Chair as well.15 Thank you.16 If it had not been given to a17 DBE as a prime contract, what subcontract18 opportunities would you have imagined19 within the contract?20
What22 subcontract would you imagine would have23 been in the contract?24
I'm going to ask25 272 3/29/11 - WHOLE - BILL 1101371 David Torres, who heads up the program,2 to speak to that.3
David Torres,4 Assistant Managing Director in the5 Managing Director's Office.6 Could you repeat the question7 one more time?8
The question9 is, if the contract had not been awarded10 to a disadvantaged business, what11 subcontracting opportunities would you12 imagine to be within the contract?13
I'm actually going14 to backtrack a bit, because there was a15 little bit of a misspeak. The Health16 Federation is a non-profit that is the17 prime on this contract. There are two18 subcontractors. One of them is Language19 Services Associates. Language Service20 Associates is an OEO-certified21 minority-owned business -- or, rather,22 woman-owned business. So that's where23 the ranges are coming in on that24 contract. And I can actually say that25 273 3/29/11 - WHOLE - BILL 1101371 there are 26 percent -- rather, that's2 what's marked in ASIS, in our contracting3 system, is 26 percent of the contract.4
The RFP, I don't7 actually know the ranges. So I would8 have to -- there were ranges set and we9 can provide them to you after today.10
I should mention12 that TransPerfect Translation, that13 contract is actually where they're14 working with OEO to be registered right15 now as we speak.16
Interesting17 enough, as you provide me some more18 information, I'd still like an answer to19 the question, which is what actual20 opportunities are identified within the21 contract, not just who received it and22 for what percentage of contract dollars,23 but in terms of the work that's being24 done. And where I'm going with this is25 274 3/29/11 - WHOLE - BILL 1101371 simply that if it's work that had to be2 done by disadvantaged business or had to3 be a majority of work had to be4 subcontract to a disadvantaged business,5 then of course the goal would be set very6 high. So I'm just wondering what portion7 of the work was available for8 disadvantaged business. And if it's 1009 percent, then that begs the question of10 should there have been -- what should the11 goal have been set in the RFP and within12 the contract. So the question first is13 just to identify the actual14 subcontracting opportunities that exist.15