PHILADELPHIA (KYW Newsradio) — After finding three city departments going around required bidding procedures and others failing to set a dollar limit on some contracts, putting taxpayers at risk, Philadelphia’s city controller is recommending new measures to keep city departments from abusing no-bid contracts.
The city charter requires departments to announce the contracts they need to procure and to select the bidder that offers the best value. But certain departments are allowed to dispense with the process for contracts with nonprofits that provide human services or emergency management.
City Controller Christie Brady found that three departments that are not permitted to use no-bid contracts did so anyway — the airport, the chief administrative officer and the managing director’s office.
“These departments spent over $15 million without adhering to the non-competitive bidding process of the city,” Brady said.
Additionally, Brady found that some departments that are allowed to use no-bid contracts failed to include contract amounts in their budgets.
“They were recorded as being for $1 rather than the contract amount,” Brady said. “And what happens when you do that is it allows the department to continue to contract for services without reserving that money in their appropriations.”
Brady says this puts tax dollars at risk and is unfair to vendors.
“The process lacks transparency and could lead to overspending.”
City Council has passed a bill that would eliminate no-bid contracts altogether — a controversial measure opposed by many nonprofits. Mayor Parker is considering whether to sign it or veto it.
Brady says that such a drastic measure isn’t necessary, but she does recommend stronger controls on no-bid contracts to make sure they are used properly.