PHILADELPHIA (KYW Newsradio) — A well-known problem about doing business with Philadelphia government is the slow pace of payment for services. For years, contractors have complained about waiting months and needing bridge loans to stay afloat. Mayor Cherelle Parker is vowing to fix it.
Philadelphia’s contracting process is complicated, but the final step before payment is called “conforming” the contract — basically, proofreading and clearing it. Early last week, 460 overdue contracts were waiting to be conformed.
By Oct. 31, that number was down to 379, and Parker pledged that the entire backlog would be cleared out by this Friday, Nov. 8, and overdue contracts paid by the end of the month.
“This is not cause for celebration,” she said. “We are affirming that we have started a process to right what has been dysfunctional for a very long time.”
Otis Bullock runs the Greater Philadelphia Community Alliance, a nonprofit that provides some of the most difficult services the city is responsible for, such as homelessness prevention and child welfare.
“You put out money to provide these services and then you submit an invoice to the city — so you can get paid six to eight months later, if you’re lucky. If you’re lucky,” he said. “That process is untenable, and for nonprofits, it’s unsustainable.”
Parker said her administration is working on reforming the entire contracting process to prevent backlogs and other problems. Chief Administrative Officer Camille Duchaussee said the goal is to remove obstacles and improve efficiency.
“This involves reducing procedural bottlenecks, increasing transparency and leveraging technology to simply and expedite the contracting process,” she added.