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Q&A
Changes to NYCHA's micro-purchase contract policies and data system improvements
2:09:05
·
3 min
Council Member Chris Banks inquires about changes NYCHA has made to its micro-purchase contract policies and data system improvements in response to past investigations and recommendations. NYCHA representative Shin Kim outlines several improvements implemented.
- Establishment of a micro-purchase pre-qualification list (PQL) with rigorous vendor vetting requirements
- Updates to micro-purchase templates requiring vendors to break down costs
- Implementation of vendor rotation among PQL vendors
- Improvements to the APEX database for detecting bit splits and tracking vendor awards
Chris Banks
2:09:05
The 2019 hearing before this committee, NYCHA spoke about data system improvements to detect bit splitting and other policy violations.
2:09:15
Can you say more about these changes and areas where additional changes may be needed?
Shin Kim
2:09:23
I apologize, chair.
2:09:25
Would you mind repeating the question?
Chris Banks
2:09:28
Can you well, let me do this.
2:09:30
Can you walk us through the changes NYCHA has made to its micro purchase contract policies over the past few years And in response to the 2019 DOI investigation into matrix construction and recent federal bribery charges, and connected to that at a 2019 hearing before this committee, NYCHA spoke about the data system improvements to detect bit splitting and other policy violations.
2:10:02
Can you say more about those changes and areas where additional changes may be needed?
Shin Kim
2:10:10
Sure.
2:10:12
Okay.
2:10:13
So thank you for that question.
2:10:17
In terms of improvements that have been made to the micro purchase process, we have established the micro purchase pre qualification list known as the PQL.
2:10:26
In order for vendors to be placed on the PQL, they have to have an iSupplier registration, which is NYCHA's vendor registration system, have a passport filing with the city's passport system which requires vendors' representations and disclosures and certifications.
2:10:44
They have to have taken anti barbery training that was conducted by our procurement ethics and vendor responsibility department, and then undergo a background check.
2:10:53
So there is a rigorous vendor vetting that is required as a result of in order to be placed on the PQL.
2:11:00
We have also updated our micro purchase it's not a solicitation, it's a micro purchase template where vendors are required to break down their cost and overhead and profit so that we can itemize and determine the cost reasonableness of their quotes.
2:11:19
We've also required rotation of vendors amongst the PQL vendors.
2:11:25
And there are, I think, a host of other recommendations that were made and implemented as a result of the DOI recommendations including hiring of NYCHA's neighborhood contract managers to oversee the micro purchase process.
2:11:40
You referred to a 2019 data.
2:11:47
I'm sorry I was not at NYCHA and so I'm not aware of that.
2:11:52
However, in terms of detecting bit splits, we have also made substantive improvements in our APEX database, which tracks when a vendor is up for bidding.
2:12:08
When the aggregated amount of award exceeds $250,000, we work with DOI to receive an investigative memo known as a vendor name check, and we've made substantial improvements there to make sure the appropriate flags are built in there.