MAYOR DE BLASIO ANNOUNCES RESULTS OF STREAMLINED CONTRACTING PROCESS FOR HEALTH AND HUMAN SERVICE PROVIDERS

Nonprofit organizations providing critical services to New Yorkers will receive advance payments at the beginning and every year of their contracts to improve their fiscal stability

  Mayor de Blasio announced today that the Administration has delivered on the commitment to improve the human service contracting process resulting in 90 percent of all fiscal year human service contracts submitted for registration across the City’s health and human services agencies. The streamlined approval process has cleared a longstanding backlog of human service contract registrations that has delayed payments to social services providers.

These changes reflect the Mayor’s long-standing commitment to invest in nonprofit providers, resulting in a historic turning point to increase the fiscal stability of organizations that deliver critical services for New Yorkers.

“Our nonprofit partners are vital for delivering high-quality human services to communities throughout the city,” saidMayor de Blasio. “These providers invest their time and expertise with our City agencies to identify solutions for long-standing contracting challenges. That value can be seen across the city.”

Streamlining contract registration ensures that nonprofits receive timely payments for services, and are eligible to receive a 25 percent advance on their contract budget. Advance payments made at the beginning of the contract term supports fiscal wellbeing for nonprofits. During the first weeks of the current fiscal year, eligible nonprofits have received more than $700 million dollars in advance payments for service delivery.

The City’s Health and Human Service agencies implemented a new policy for timely contract registration of July 1 contracts following a recommendation from the Nonprofit Resiliency Committee, a public-private partnership launched by the Administration in 2016.  The policy change has demonstrated strong success already with ACS, DFTA, DHS, DOHMH, DOP, HPD and HRA having 90 percent of contracts ready for registration with the Comptroller’s Office on time.    

The Nonprofit Resiliency Committee has advance other important successes. The launch of the Health and Human Services Cost Policies and Procedures Manual, made New York City the first major city in the country to develop a standard approach to defining health and human service costs, as well as setting uniform policies and procedures for the reimbursement of indirect rates. 

Additionally, all City human service agencies have adopted a centralized electronic system (HHS Accelerator) to streamline the collection, review and approval of contracting, invoicing and audit documentation. By using a standardized digital invoicing system, providers are paid within six days, on average, allowing for greater financial stability. 

The City’s investments to date in the nonprofit sector have totaled over $600 million, and have supported wage increases for employees – including a minimum wage of $15 per hour and a 9 percent increase, funding for indirect rates, and rate enhancements for several critical programs such as homeless shelters, Beacon youth centers, and case management for senior centers. In this fiscal year, the City deepened its commitment by agreeing to increase reimbursement for human services providers’ indirect rates, which typically cover administrative overhead costs.

These actions build on the Administration’s launch of the Nonprofit Resiliency Committee (NRC) in September 2016, which represented a substantial change in the City’s approach to working with nonprofit service providers, resulting in a fuller and more collaborative partnership. The NRC is chaired by the Deputy Mayor of Health and Human Services – most recently Dr. Herminia Palacio – and managed by the Mayor’s Office of Contract Services (MOCS). 

“At DSS, we fight poverty and support low-income New Yorkers 24/7/365—and we don’t do this work alone. Every day, we work in close collaboration with essential non-profit service providers to deliver on our legal and moral obligations as a City, and we're proud of the progress we've made with them to continually strengthen that collaboration,” said Department of Social Services Commissioner Steven Banks. “Through the reforms we’ve implemented, including integration of DHS and HRA under the Department of Social Services, we’ve been able to address years of contracting backlogs that we inherited, improve timeliness of contracting, and streamline the process for providers. Along with our quarter-billion dollar investment in these partners to raise their rates and implementation of model shelter budgets to standardize costs and services, we’re making good on our commitments to right-size this work stream once and for all.” 

“In the two years managing the Nonprofit Resiliency Committee, I’m proudest of the bridge built between City Hall and the human services community,” said Jennifer Geiling, Executive Director of the Nonprofit Resiliency Committee, Deputy Director, Mayor’s Office of Contract Services.  “Together we have made it easier and faster to do business with the City and are making significant investments in strengthening nonprofit organizations.”

 “The Nonprofit Resiliency Committee has helped deepen collaboration between City government and its nonprofit partners, and produced concrete changes to City practices in areas like funding, program development, and contracting – all in recognition that nonprofits must be strong in order for their services to be effective,” said Matthew Klein, executive director of the Mayor’s Office for Economic Opportunity. “Our office looks forward to continuing our work with the NRC to ensure that service providers can deliver high quality programs that benefit all New Yorkers, and especially our most vulnerable residents.”