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Contracting Review, July 8, 2009

Contracting Review, July 8, 2009


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Contracting review
Contracting review

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Published by: City Room on Jul 08, 2009
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OFFICE OF THE MAYOR OFFICE OF CONTRACT SERVICES 253 Broadway – 9th Floor New York, New York 10007

(212) 788-0010 Fax (212) 788-0049 MARLA G. SIMPSON Director MEMORANDUM TO: FROM: DATE: SUBJECT: Agency Chief Contracting Officers Marla G. Simpson July 8, 2009 Mayoral Directive – Temporary Pre-Registration Review (TPR) Process

As you know, on Monday, Mayor Bloomberg announced an immediate review of all City contracts to ensure that the City meets its legal obligation to maintain a balanced budget. The Fiscal Year 2010 budget, adopted by the City Council in June, included new revenues that require approval by the State Legislature. The lack of action in the State Senate on the new revenue package has cost the City $60 million in the month of July, and if the State Senate fails to act on the revenue package this year, the City stands to lose nearly $900 million. The temporary review process, which will be jointly administered by the Office of Management and Budget (OMB) and the Mayor's Office of Contract Services (MOCS), will ensure that the City does not enter into non-essential contracts. Effective immediately, all prior delegations that permit Agency Chief Contracting Officers (ACCOs) to exercise Mayoral approval are hereby suspended indefinitely. In addition, all contracts and grant awards valued at more than $100,000, must be submitted to OMB and MOCS through TPR@cityhall.nyc.gov prior to submission to the Comptroller for registration or filing. In addition to those contracts that ordinarily require MOCS’ approval, all other contracts or grant awards that require Comptroller registration or filing, including all competitive sealed bid awards, purchase orders for goods and non-contractual grants, both expense- and capital-funded, must undergo this Temporary PreRegistration Review (TPR) process. This applies to City Council/Borough President discretionary awards as well. All organizations should be made aware that, without a registered contract, payment for the services they provide is at risk, as the City is not able to commit to these awards in the absence of State Legislative approval of the City’s revenue package. Instructions for the specific materials you must submit for those contracts or grant awards you propose to register (or file) with the Comptroller during this period will follow under separate cover. The TPR package must contain a detailed justification of why the proposed award reflects the purchase of essential goods, services or construction.

Printed on paper containing 30% post-consumer material.

Questions to consider in making that determination include: • Are the services, construction or supplies funded by the pending award ongoing, or new? The City may defer registration of many awards that reflect new services, construction projects and/or types of supplies. For ongoing services, construction and goods supply chains, what are the consequences of a temporary cessation? Agencies will have to certify that it is in the City’s best interests to continue the award because, e.g., public health or safety (including the safety or health of any clients served) would be imperiled by a temporary suspension of services, construction or the supply chain; or that the award reflects the expenditure of federal stimulus funds under the American Recovery and Reinvestment Act (ARRA)..

During this period, once an agency has submitted all required materials, representatives of MOCS and OMB will jointly determine whether the request to submit a package to the Comptroller for registration or filing is approved or deferred. For questions about the implementation of this Directive, please feel free to contact me or First Deputy Director Andrea Glick. Cc: Senior Staff; Agency Heads; Agency Fiscal Officers; Agency General Counsels

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