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Henry Street Hosts Announcement of “A Better Contract for New York”

By Henry Street Settlement

Members of the Mayor's and Comptroller's offices along with nonprofit leaders gather for a press conference.

Photo by: Office of New York City Comptroller

On Monday, February 14, New York City Comptroller Brad Lander and senior members of the New York City Mayor’s Office gathered together at Henry Street Settlement’s Dale Jones Burch Neighborhood Center to release the findings of A Better Contract for New York: A Joint Task Force to Get Nonprofits Paid On Time. Both offices announced five actionable steps to better manage and streamline the nonprofit contracting and procurement process while increasing accountability and transparency.

New York City funds hundreds of nonprofits to carry out human services—from health and housing assistance, shelter operations to afterschool activities. Last year, the city procured $12 billion in human services, totaling 40% of procured goods and services. The nonprofit sector is a substantial part of the city’s economy, employing more than 500,000 people, an overwhelming majority of whom are women and people of color.

Many of these partners wait months, and up to more than a year, to get paid for services they provide to New Yorkers. Delays and flaws in the process of registering and paying contractors have left many nonprofits in a lurch, taking out loans to continue their essential operations while they wait for reimbursement from the city.

“As a provider with an extensive range of government contracts and partnerships, Henry Street Settlement understands how critically important it is that the procurement and payment process function efficiently and effectively in order for providers to be able to execute and deliver on their mission.” – David Garza, President and CEO, Henry Street Settlement

“Settlement houses, along with a constellation of nonprofits across the city, work tirelessly to deliver vital programs that children and families need to survive and thrive; food, shelter, education, employment, health care, and the arts – essential services that serve as a lifeline to countless New Yorkers and are the fabric of the safety net that is needed to help the city recover from COVID,” said Henry Street president and CEO David Garza. “As a provider with an extensive range of government contracts and partnerships, Henry Street Settlement understands how critically important it is that the procurement and payment process function efficiently and effectively in order for providers to be able to execute and deliver on their mission. We commend Mayor Adams, Comptroller Lander, and the task force for taking on such fundamentally important issues and for the commitment to implement policy and practice that will improve the human service sector’s ability to benefit those we serve.”

“Our city’s nonprofit human service providers are lifelines for New Yorkers, providing essential services from feeding the elderly to mental health care, yet our city’s cumbersome contracting process has hindered many nonprofits’ abilities to deliver these critical services,” said Comptroller Lander. “I look forward to working with Mayor Adams, his future appointment to the newly created Mayor’s Office of Nonprofits, and our city’s essential nonprofit organizations to implement these overdue reforms.”

Comptroller Brad Lander listens into a Valentine's story alongside Henry Street Early Childhood learners

Comptroller Lander listens in during story time with students at Henry Street’s Early Childhood Education center. Photo by: Office of New York City Comptroller

The mayor and comptroller are jointly responsible for procurement and contract administration, each playing a defined role to protect public funds and award contracts fairly. Both offices have committed to ensure nonprofit contractors are paid on time, in full, and on a predictable schedule, while preserving appropriate oversight to prevent abuses. This process requires continued coordination between mayoral agencies and the Comptroller’s Bureau of Contract Administration.

Since its founding Henry Street Settlement has partnered with the city to reform and advance bureaucratic procedures to best support nonprofit agencies and the New Yorkers they support. Henry Street looks forward to working with the mayor and comptroller’s offices in implementing the report’s recommendations.

Read the full report here.

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