Philadelphia City Council has approved a bill removing the nonprofit contract exemption available to certain municipal departments, despite opposition from the Parker administration and some community organizations.
The current exemption allows departments related to health, human services and public safety to bypass the typical city bidding process for agreements with nonprofits.
Majority Leader Katherine Gilmore Richardson introduced the legislation after the inspector general recommended evaluating the special rule in a preliminary report investigating overspending at the Office of Homeless Services.
Under the bill, the exemption would be eliminated beginning in July 2025. The measure passed 15-2, though some lawmakers who voted for it expressed reservations.
“This is a tough one for me,” Councilmember Jamie Gauthier said. “I am going to vote ‘aye’ today, but I’m doing so because I’m trusting in our majority leader to really use this next year to bring nonprofits together, to bring all of the relevant city partners together, to make sure that this is something that can work and doesn’t do harm.”
Gilmore Richardson said she is committed to improving the process, and Council also adopted a resolution she introduced creating a task force to study nonprofit contracting procedures. The body will be directed to produce a set of recommendations by the end of the year.
From Metro Philadelphia
