Q&A
Concerns about contract concentration and DSS strategies for provider diversification
1:36:37
·
3 min
Council Member Julie Won raises concerns about the concentration of contracts among a small number of large providers and asks about DSS strategies for diversification and support for smaller providers.
- Won cites a 2024 DOI report noting that DHS relies heavily on 17 providers for 65% of shelter capacity
- She inquires about contingency plans if a large provider ends their relationship with DHS or is unable to perform
- Commissioner Park outlines DSS strategies for provider diversification and capacity building:
- Using an open-ended RFP process to encourage a range of providers
- Assessing both experience and capacity when reviewing providers
- Adding nearly a dozen new providers in recent years due to shelter census growth
- Implementing capacity building agreements for 11 smaller, newer providers to help them grow and comply with city requirements
Julie Won
1:36:37
I have a lot of concern for DHS.
1:36:40
For CAMBA, SEPCO, Bronx Parent Housing Network, these have been identified partners to be bad faith actors.
1:36:48
So in 2024, DOI's report noted that DHS currently relies heavily on only 17 providers who comprise 65% of the city's shelter capacity.
1:36:58
We've heard from providers and other forums that delayed payments and other contract requirements make it difficult for smaller providers to bid for these contracts.
1:37:07
What is a contingency plan, if any, for unexpected one of these large providers to end their relationship with DHS or is otherwise unable to perform, like going to jail?
1:37:16
Or can DSS share if it has any other plans to ease the proposal process or provide support for smaller providers to a be to allow them to deliver DSS services?
Molly Wasow Park
1:37:29
Thank you, council member.
1:37:31
It's really important to us that we are both getting experienced providers in the door while also opening up opportunity for others.
1:37:40
So we you know, I talked earlier about our open ended RFP process.
1:37:45
We really encourage a range of providers to come in.
1:37:49
One of the things that we are looking at is is capacity as we are reviewing providers.
1:37:54
That can mean one of 2 things.
1:37:56
Right?
1:37:56
It means, do you have the experience necessary to do the job?
1:38:01
Both compliance with with city procedures and as well as actually providing shelter services, both of those are complicated, as we have been talking about.
1:38:11
So we wanna make sure that we have somebody who has some level of relevant experience.
1:38:15
If they are not a DHS a previous DHS shelter provider, we're looking at have they operated shelter in another jurisdiction or do they have experience with other city human services contracts that would be relevant.
1:38:28
And then from for those who are existing DHS providers, one of the things that we're looking at is bandwidth.
1:38:35
Right?
1:38:35
Sometimes we're gonna say, now's not the right time.
1:38:38
We have we have concerns about your your capacity here.
1:38:42
Not as a pejorative thing, but just, you know, it it's hard to run an organization, we recognize that.
1:38:49
One of the things that I would say is an upside of, of the recent growth in the shelter census, not not a place where I generally look for upsides, but we have added, I think, close to a dozen new providers over the last couple of years, and I think that's gonna that's exciting for us.
1:39:07
It's capacity that we we can grow over time.
1:39:11
With with respect to your questions around contingency planning, right, our goal always is if we detect a problem to work with the organization to try and rectify it.
1:39:22
That is step 1.
1:39:23
We've also really demonstrated that nobody is too big to fail.
1:39:27
I talked earlier about CCS.
1:39:29
They were a really major provider and we their issues were too egregious.
1:39:33
They were not saveable, and we ended our relationship with them.
1:39:37
They are not the only ones.
1:39:39
So we will take action and we take rapid action when we need to.
1:39:44
But we also are looking at at technical assistance.
1:39:47
In addition we have pulling up my numbers here.
1:39:53
I believe it is 11 providers on what we call capacity building agreements.
1:40:02
So these are smaller non profit not for profits newer to the DHS system where we have actually put structured plans in place to help them, grow and to figure out how to comply with, as we've been discussing for the last several hours, what are sometimes very complex city requirements.
