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Transmitting a message advising you that I am hereby returning Bill Number 240379 unsigned, introduced by Councilmember Katherine Gilmore-Richardson, and passed by City Council on June 13, 2024. Bill Number 240379 would remove the nonprofit vendor exemption codified in Section 17-1400 of the Philadelphia Code.
The nonprofit vendor exemption allows select City departments to swiftly secure and provide health, public safety, and social services during crises, natural disasters, public health emergencies, unforeseen infrastructure failures, and other emergent or time-sensitive situations. The nonprofit vendor exemption has been crucial during health emergencies such as the COVID-19 pandemic, during mpox (formerly known as Monkeypox) outbreaks in certain communities, and when we have had a measles exposure at the PHL Airport. The exemption has also been needed in time-sensitive efforts to provide legal support to Philadelphians wrongfully denied benefits, when a child in our DHS system has required immediate hospitalization in a psychiatric hospital, and when we quickly put Zero Fare cards in the hands of immigrants, refugees, and asylees who were ineligible for most other public benefits. The exemption has also been used in housing emergencies, such as when residents have been negatively affected by adjacent construction to a property (such as a partial or total building collapse) and when tenants have been forced out of their units after a catastrophic apartment fire. These are just a few examples of when the nonprofit vendor exemption was needed; what these examples all have in common is that they demonstrate the need for an expedited contracting process in time-sensitive situations where a lengthier competitive bidding process is not feasible or practical.
As public servants, we must provide these essential services without compromising accountability and integrity. Majority Leader Gilmore Richardson should be commended for introducing Bill Number 240379 in this spirit. But, as the Inspector General testified during the Committee hearing on this bill, “Bill 240379, in its current form, is overly broad and unnecessarily penal - especially to departments who have been using the exemption with due care and responsibility,” and “there is still underlying policy behind the original exemption that should not be totally disregarded.”
By definition, emergencies, as well as other emergent situations, require swift and decisive action to mitigate harm and ensure safety, often for our most vulnerable citizens. The administration has significant concerns around limiting the City’s ability to effectively respond to unforeseen circumstances, as this bill would do.
Throughout the legislative process, many of our City’s nonprofit partners cautioned against the consequences this bill would produce, including reduced services and gaps in service, added administrative costs for nonprofits, and the inability of smaller nonprofits to adequately handle a competitive bidding process. Since Day One, this administration has been committed to ensuring Philadelphia is open for business, especially for our nonprofit partners that provide crucial services to Philadelphians. This bill, however, is antithetical to that vision.
While this administration remains committed to ensuring the City’s procurement process becomes more efficient, transparent, accessible, and responsive to Philadelphians’ needs, the administration remains concerned that this bill could limit such progress. For these reasons, I am returning Bill Number 240379 unsigned. Furthermore, this administration remains committed to working with the Majority Leader, and all other members of Council, to mitigate any unintended consequences of this legislation before its implementation date of July 1, 2025.
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