Contract Administration

RCNY tit. 9, ch. 4

in effect

9 RCNY § 4-01 Evaluation and Documentation of Vendor Performance.

§ 4-01 Evaluation and Documentation of Vendor Performance. (a) Criteria. The CCPO may determine the form of performance evaluations, which may vary based on contract industry. A performance evaluation shall: (1) conform to the requirements of the contract, including, but not limited to, quality of performance, timeliness of performance, fiscal administration, and fiscal accountability. The agency awarding the contract shall identify specific objectives and evaluation criteria to be included as part of the contract. Where practicable, the agency shall develop both qualitative and quantitative performance indicators, including outcome criteria; and, (2) for client services shall: (i) include periodic unannounced site visits and interviews with clients and staff, the results of which shall be summarized and made a part of the evaluation report; and (ii) consider assessments of client satisfaction. The agency shall assess client satisfaction by using techniques as may be appropriate. If interviews or surveys are used, clients shall be selected on a statistically random basis to ensure sampling of a representative cross-section of the client population. (b) Frequency. The agency shall monitor the vendor’s performance against such standards and indicators on an ongoing basis and sufficiently far in advance of the end of the contract term to determine whether an existing contract should be extended, renewed, terminated, or allowed to lapse. Except as specified in subdivision (c) of this section, a performance evaluation shall be completed annually within 90 days after the anniversary of the contract start date. For contracts that an agency is planning to renew, the agency should have completed a performance evaluation within the year preceding the new contract year and prior to completing the responsibility determinations for the renewals. Notification to the vendor of deficient performance shall be made as soon as practicable, and shall not await the annual evaluation. Additional performance evaluations may be completed at the agency’s discretion with the CCPO’s approval. The CCPO shall establish procedures to ensure systematic evaluation of vendor performance. (c) Report and vendor response. The evaluation and supporting documentation shall be incorporated in a report and entered into PASSPort. A copy of the evaluation report and a copy of this section shall be sent promptly to the vendor by email. (1) Within fifteen days of sending a copy by email of the evaluation report (or any notification of deficient performance), the vendor must respond to the agency in writing. Such response must include a corrective action plan identifying with specificity the steps the vendor intends to take to remedy any deficiencies identified by the agency. Failure to respond within the specified time shall constitute the vendor’s agreement with the contents of the report, but will not release the vendor from its obligations under this section. (2) The agency shall provide a written response to the vendor’s response to the evaluation report. The vendor may not provide additional responses. (3) A performance evaluation that results in an unsatisfactory overall rating shall be entered as a caution in the centralized computer database to comport with 9 RCNY § 2-08(d)(2). (d) Contract termination. Nothing in this section shall affect an agency’s right to terminate a contract for deficient performance or otherwise, in accordance with the terms of the contract. (e) Exemptions. The following contracts are exempt from the performance evaluation requirements, unless there has been deficient performance: (1) Contracts for goods that were: (i) procured by competitive sealed bid; and (ii) not awarded on best value. (2) Procurements under the small purchase limits. In certain other cases it may be in the best interest of the City not to complete an annual performance evaluation for a specific evaluation period, except in the case of deficient performance. The agency may apply for such an exemption from the evaluation requirements for that evaluation period in a manner directed by the CCPO. Such exemption will be in the sole discretion of the CCPO. (Amended City Record 8/27/2025, eff. 9/26/2025)

9 RCNY § 4-02 Contract Changes.

§ 4-02 Contract Changes. (a) Policy. (1) All changes to existing contracts shall be approved by the ACCO and shall be reflected in a change order, which, once authorized, shall become a part of the original contract. A copy of the change order shall be sent to the vendor within ten days after authorization of the change. Vendors who deviate from the requirements of the original contract without a duly authorized change order do so at their own risk. (2) The ACCO may include in any solicitation a provision for determining the cost of expected changes, so that these costs can be competitively determined before award. (b) Types of changes permitted. (1) Changes may include any one or more of the following: (i) specification changes to account for design errors or omissions; (ii) changes in contract amount due to authorized additional or omitted work. Any such changes require appropriate price and cost analysis to determine reasonableness. In addition, except for non-construction requirements contracts, all changes that cumulatively exceed the greater of ten percent of the original contract amount or $500,000 shall be approved by the CCPO; (iii) extensions of a contract term for good and sufficient cause for a cumulative period not to exceed one year from the date of expiration of the current contract. Requirements contracts shall be subject to this limitation; (iv) extensions of a contract term pursuant to 9 RCNY § 3-11(d)(2); (v) changes in delivery location; (vi) changes in shipment method; and (vii) any other change not inconsistent with this section. (2) Changes not permissible for material alterations of scope. Changes are permitted only for work necessary to complete the work included in the original scope of the contract, and for non-material changes to the scope of the contract. Changes are not permitted for material alterations in the scope of the work or for the insertion of a renewal clause to the contract. Material alterations to the scope of the work may be made only by a new procurement. (3) Small purchases. Changes to small purchases shall not bring the total value of the procurement to an amount greater than the small purchase limits. (4) Subcontracts. Changes to construction subcontracts shall be made in accordance with 9 RCNY § 4-13(d). (c) Adjustments of price or time for performance. The vendor may be entitled to a price adjustment for extra work performed or to be performed pursuant to a written change order. If any part of the contract work is necessarily delayed by a change order, the vendor may be entitled to an extension of time for performance. Adjustments to price shall be validated for reasonableness by using appropriate price and cost analysis. (d) Documentation. (1) Changes shall be categorized by type and numbered sequentially. (2) For each procurement, the ACCO shall maintain a log of all executed change orders that shall include: (i) the name of the vendor and the original contract amount, (ii) the reason(s) for and the dollar amount of the change order, and (iii) a running total of the value of the changes and the resulting revised contract amount. (3) As-built field records shall be maintained by the agency or its designated construction site representative.

9 RCNY § 4-03 Extensions of Time for Performance.

§ 4-03 Extensions of Time for Performance. (a) Application. If performance by the contractor is delayed for a reason set forth in the contract, and performance will not be completed within the time period or by the date set forth in the contract, a reasonable extension in time for performance may be allowed. (b) Goods and services. (1) An extension of time may be granted only by the ACCO of the agency that awarded the contract upon written application by the contractor. An extension pursuant to this section may be granted only for performance based contracts (such as for the delivery of goods or deliverable based services) and this section does not apply to extensions pursuant to 9 RCNY § 4-02 or renewals pursuant to 9 RCNY § 4-04. For contracts consisting of separate deliverable based elements (such as task or purchase orders pursuant to a requirements contract), an extension pursuant to this section may be made only for such deliverable based elements (such as task or purchase orders) and not the underlying contract. (2) The ruling of the ACCO is final and binding as to the allowance of an extension, and the number of days allowed. (3) The application for extension must detail each cause for delay, the date it occurred, and the resulting total delay in days attributed to such cause. For construction related services, the application must detail the cause for the delay only if it is within the knowledge of the applicant. (4) For construction related services, if the extension is based on a delay in construction, the extension must not exceed the extension granted for the construction contract, unless the application sets forth an additional basis for the extension. (c) Construction. An extension of time may be granted only by the ACCO of the agency that awarded the contract or by the Board of Time Extension (as set forth below), upon written application by the contractor. (1) Application for extension of time. (i) Before a contractor's time extension request may be approved, the contractor must submit a written application identifying, at a minimum: (A) the contractor, the contract registration number, and project description; (B) liquidated damage assessment rate, as specified in the contract; (C) original bid amount; (D) the original contract start date and completion date; (E) any previous time extensions granted (number and duration); and (F) the extension of time requested. (ii) In addition, the application for extension of time shall set forth in detail: (A) the nature of each alleged cause of delay in completing the work; (B) the date upon which each such cause of delay began and ended and the number of days attributable to each such cause; (C) a statement that the contractor waives all claims except for those delineated in the application, and the particulars of any claims which the contractor does not agree to waive. For time extensions for substantial and final completion payments, the application shall include a detailed statement of the dollar amounts of each element of claim item reserved; and (D) a statement indicating the contractor's understanding that the time extension is granted only for the purpose of permitting continuation of contract performance and payment for work performed and that the City retains its right to conduct an investigation and assess liquidated damages as appropriate in the future. (2) Analysis and approval of time extensions. (i) For time extensions for partial payments, a determination shall be made by the ACCO who may, for good and sufficient cause, extend the time for the performance of a contract as follows: (A) if the work is to be completed within six months, the time for performance may be extended for sixty days; (B) if the work is to be completed within less than one year but more than six months, an extension of ninety days may be granted; (C) if the contract period exceeds one year, besides the extension granted in subparagraph (B) above, an additional thirty days may be granted for each multiple of six months involved beyond the one year period; or (D) if exceptional circumstances exist, the ACCO may extend the time for performance beyond the extensions in A, B, and C above. (ii) For extensions of time for substantial completion payments and final completion payments, the agency engineering staff, in consultation with the ACCO, shall prepare a written analysis of the delay (including a preliminary determination of the causes of delay, the beginning and end dates for each such cause of delay, and whether the delays are excusable under the terms of the construction contract). The report shall be subject to review by and approval of the Board of Time Extension, which shall have authority to question its analysis and determinations and request additional facts or documentation. (iii) Approval mechanism for time extensions for final or substantial completion payments. An extension of time for a final or substantial completion payment shall be granted only with the approval of the Board of Time Extension comprised of the ACCO, the Corporation Counsel, and the Comptroller, or their authorized representatives. (3) Assessment of liquidated damages. In the case of substantial completion and final completion payments on construction contracts, liquidated damages shall be assessed against the contract as determined by the report's analysis of the contract delays. However, neither the failure to assess liquidated damages at this time, nor the report itself, nor the granting of a time extension at substantial or final completion, shall operate as a waiver or release of any claim the City may have against the contractor for either actual or liquidated damages. (Amended City Record 1/29/2016, eff. 3/1/2016)

9 RCNY § 4-04 Renewals.

§ 4-04 Renewals. (a) Defined. Renewals are defined as re-registration of previous contracts with the same vendor, with substantially unchanged terms and conditions, but possibly revised quantities, lists, or schedules or items to be supplied. (b) Renewals not permitted. Unless specifically contracted for, as in contracts containing an option to renew, renewals shall not be permitted where: (1) additional quantities of goods are required, except in the case of goods acquired through requirements contracts (which shall be subject to the contract term extension limitations in 9 RCNY § 4-02(b)(1)(iii); (2) except as provided in 9 RCNY § 4-02(b)(1)(ii) and 9 RCNY § 4-02(b)(1)(iii), a continuation of types of services is required, the procurements shall be made by new solicitations by one of the appropriate methods of source selection set forth in these Rules; or (3) Buy-against Procurements pursuant to 9 RCNY § 4-07 are not permitted in Design-Build Services contracts. (c) Recommendation for renewal. The Contracting Officer shall prepare a Recommendation for Renewal which shall be approved by the ACCO. The Recommendation for Renewal shall include the following documentation: (1) agency name and department; (2) PIN; (3) vendor name, address, Tax Identification Number, and telephone number; (4) program name(s) and address(es) where services are actually provided to clients, or administered if the services are not "center-based" (5) borough(s) and community district(s) in which the program shall operate; (6) period of (including prospective renewal options, if any) and amount of contract; (7) period of and amount of prior contract; (8) source of funding, and a certification from an authorized fiscal officer of the agency that funds are or are expected to be available for the renewal contract; (9) if applicable, dates of City Record and other publication of notices pertaining to the intent to renew; (10) an assessment of vendor's performance during the prior contract period (overall rating of latest performance assessment) and a statement, based on the agency's performance evaluation process, of whether the provider's performance for the prior contract period was determined to be in compliance with the requirements of the contract; (11) if applicable, date, period covered, and findings of latest available financial audit report, name of the CPA firm that conducted it, and whether the CPA firm was unable to express an opinion as to the adequacy of the contractor's books and records; (12) comparison of actual and contracted levels of service (and/or minimum outcome requirements) for the prior contract period, and for client services, a statement that the services in question are still needed, required or mandated and that renewal of the contract with the existing service provider is in the best interests of the City including the interests of individual clients, client populations being served and the affected community; (13) proposed contracted levels of service (and/or minimum outcome requirements) for the new contract; (14) if a public hearing or public notice and comment was held, the date of the public hearing or period of public notice and comment, the number of witnesses testifying or comments received, and an explanation of the effect, if any, of the testimony offered at the public hearing or comments on the decision to renew and/or on the terms and conditions of the contract; if a public hearing or public notice and comment was not held, an explanation of why a public hearing or public notice and comment was not held, including a statement that the renewal contract is on substantially the same terms and conditions as the original contract; (15) signature of the ACCO signifying his/her approval and verifying the accuracy of the information; (16) the date the services contracted for pursuant to this contract were last solicited; and (17) all applicable determinations called for by these Rules, including a determination, if applicable, that the prices set forth in the contract are still fair and reasonable. (d) Notice and publication requirements for client services renewals. Public notice of the intent to renew a contract shall be provided in accordance with this subdivision, for the purpose of eliciting information concerning the provider's performance and other factors relevant to the renewal. (1) Contracts subject to the public notice requirement. (i) In the case of contracts in value greater than $100,000, such notice shall be provided whenever public notice and comment is required. (ii) In the case of contracts in value greater than $25,000 but not more than $100,000, such notice shall be provided unless: (A) public notice and the approval of the CCPO for the original contract award or the exercise of a renewal option occurred within the prior two years, and (B) in connection with that award or renewal, public notice and approval were provided concerning both the original contract term and all possible renewal options contained within the contract. (iii) Public notice is required if the renewal option to be exercised is for a period of three or more years. (iv) Such notice is not required in the case of renewals of contracts of $25,000 or less. (2) Publication requirements. Within seven calendar days after the approval by the ACCO, the agency shall initiate steps to publish notice of the intent to renew once in the City Record and shall post such notice on the City's website in a location that is accessible by the public simultaneously with its publication. The agency may also publish notice of the intent to renew in one or more of the local newspapers of the borough and/or community within the borough where the services are provided. The notice shall also be mailed to the proposed provider and the Borough President(s) and Community Board chair(s) in the district(s) where the services are provided, and shall be conspicuously placed on the premises of the location where services are provided, if practicable, and otherwise where the program is administered. The agency shall take other steps to solicit comments from clients, advocates, and others sufficiently in advance of the renewal date so that appropriate action can be taken to respond to issues identified in such comments. (3) Contract summary. Prior to providing public notice of the intent to renew a contract, the ACCO shall prepare a summary of the terms and conditions of the proposed renewal contract, including a description of the scope of services, the target population, the proposed renewal term of the contract, and the location of the program. The summary may be prepared for a category of contracts, accompanied by a detailed contractor/site specific schedule. (4) Content of public notice. The public notice of intent to renew the contract shall include: (i) the City agency name; (ii) the name and address of the vendor; (iii) PIN; (iv) the address of the location where the services are provided, if practicable, and otherwise where the program is administered; (v) a brief description of the nature of the services to be provided; and (vi) the name and telephone number of the City agency staff member who can be contacted to provide a copy of the contract summary. (e) Public notice and comment requirements. Renewal contracts shall be subject to public notice and comment for the purpose of eliciting information concerning the vendor’s performance and other factors relevant to the renewal, unless: (1) the renewal option to be exercised is in a contract where the original contract or any prior renewal option was subject to a public hearing or public notice and comment, and the original contract term and all possible renewal options contained within the contract, were subject to such public hearing or public notice and comment, or (2) in exigent circumstances, in the case of contracts in value less than $10,000,000, the ACCO has made a determination justifying an exemption and that justification has been approved by the CCPO. (f) Notice of award. Notice of Award of a renewal contract shall be published in the City Record within fifteen days after registration of the renewal contract. (Amended City Record 8/27/2025, eff. 9/26/2025; amended City Record 12/12/2025, eff. 1/11/2026)

9 RCNY § 4-05 Quality Assurance, Inspection, and Testing.

§ 4-05 Quality Assurance, Inspection, and Testing. The CCPO (in the case of construction and certain services), and the DCAS (in the case of goods and certain services as authorized in Chapter 59 of the Charter), shall take such steps as are deemed desirable to ascertain or verify that goods, services, or construction items procured by the Contracting Officer conform to specifications. In performing this duty, the CCPO and DCAS may establish inspection and testing facilities, employ inspection personnel, enter into arrangements for the joint or cooperative use of laboratories and inspection and testing facilities, and contract with others for inspection or testing work as needed. The CCPO and DCAS may delegate authority for inspection and testing to City agencies.

9 RCNY § 4-06 Prompt Payment.

§ 4-06 Prompt Payment. (a) Policy. It is the policy of the City of New York to process contract payments efficiently and expeditiously so as to assure payment in a timely manner to firms and organizations that do business with the City. (b) Definitions. In this section, the following words have the meanings indicated. Applicable Interest Rate. Interest shall be the maximum amount allowed by law or such lower uniform interest rate as may be set jointly by the Comptroller and OMB. Designated Billing Office. The office or employee designated in the contract to which a proper invoice is to be submitted by a contractor. Discount Date. The date by which, if payment is made, a specified invoice payment reduction, or discount, can be taken. Invoice Received or Acceptance Date ("IRA Date") – Goods and Services. (i) For purposes of determining a payment due date for goods and services and the date on which interest will begin to accrue and for no other purpose, an invoice received or acceptance date ("IRA date") is defined as the later of: (A) the date a proper invoice is actually received by the designated billing office if the agency annotates the invoice with the date of receipt at the time of receipt, or (B) the seventh day after either the date on which the goods are actually delivered or the services are actually performed, unless: ((a)) the agency has actually accepted and approved the goods or the services before the seventh day (in which case the acceptance date shall substitute for the seventh day after the delivery or performance date), or ((b)) a longer acceptance period is required by law or included in the contract to afford the agency a practicable opportunity to inspect, test, and accept the goods or evaluate the services (in which case the date of actual acceptance or the date on which such longer acceptance period ends shall substitute for the seventh day after the delivery or performance date). Invoice Received or Acceptance Date ("IRA Date") – Construction and Construction-Related Services. For construction, for purpose of determining a payment due date and the date on which interest will begin to accrue and for no other purpose, an invoice received or acceptance date ("IRA date") is defined as the date when the field engineer certifies on the payment requisition that the work has been accepted. Proper Invoice. A written request for a contract payment that is submitted by a vendor in good faith setting forth the description, price, and quantity of goods or services delivered or rendered, in such form and supported by such documentation as an agency may require, and any other documents required by contract. Required Payment Date or Interest Eligibility Date. The date by which a contract payment must be made in order for an agency not to become liable for interest payments. Receiving Report. This report may be used by a receiving unit to inform others, such as the purchasing, warehousing, accounting, and quality assurance departments, of the receipt of goods purchased or acceptance of services rendered. A receiving unit may, in some cases, also verify that goods and services conform to specification requirements and may include on the receiving report evidence of the acceptance of the goods and services. Retainage. The right of the City pursuant to a contract and/or law to withhold from the invoice and retain a specified percentage of payment until such time as it is to be released pursuant to the contract and/or law. (c) Standards for prompt payment. (1) Starting the payment period. The period available to an agency to make a timely payment of an invoice without incurring an interest penalty shall begin on the IRA date. (2) Required payment date. The required payment date shall be: (i) thirty days; or (ii) in the case of contract changes, sixty days; or (iii) in the case of substantial completion payments or final payments on construction contracts, sixty days after the IRA date, except as described in paragraph (3) below; or (iv) except as provided in subdivision (d)(4)(iv), the required payment date for the release of retained amounts shall be in accordance with the contract and law, and thirty days after the submission of a proper invoice for the return of the retained amounts. (3) Extension of the required payment date. The date by which a contract payment may be made without the payment of interest may be extended by the time taken to satisfy or rectify any of the following: (i) the Comptroller, in the course of an audit, determines that there is reasonable cause to believe that payment may not be properly due, in whole or in part, due to fault of the vendor; (ii) the necessary City, State, or federal government appropriation required to authorize payment has not been made; (iii) a proper invoice must be examined by the State or federal government prior to payment; (iv) the goods have not been delivered or the construction or services have not been performed in compliance with the terms and conditions of the contract; (v) in the case of substantial or final payments on construction contracts, the ACCO determines that the vendor has failed to properly submit the necessary documents and other submissions prescribed by the contract specifications and requirements or by law in order to enable the agency to process the final payment properly and expeditiously; and (vi) when the required payment date falls on a weekend or City holiday, the required payment date shall be extended to the next following business day. (4) Proper invoice required to initiate payment. A proper invoice submitted by the vendor shall be required to initiate payment, except where the contract provides that the vendor will be paid at predetermined intervals without having to submit an invoice for each scheduled payment. (5) Receipt and acceptance of goods and services. Agencies shall ensure that receipt and acceptance are executed within seven days unless otherwise specified in the contract. Receiving reports and invoices shall be stamped or otherwise annotated with the date upon receipt in the designated billing office. (d) Interest eligibility and computation. (1) Eligibility. When payments are made after the required payment date, interest shall be paid to the vendor based on the IRA date. Interest shall be computed at the maximum amount allowed by law, or such lower uniform rate set jointly by the Comptroller and OMB. Such interest rate shall not apply to contracts where, as part of the contract obligation, the City is required to pay an interest rate other than the rate determined by the Comptroller and OMB. (2) The interest rate shall be reviewed every six months by the Comptroller and OMB to determine its continued applicability. The new interest rate for each upcoming six-month period, i.e., July 1 through December 31/January 1 through June 30, shall take effect on payments made on or after the effective date and shall be published by the CCPO in the City Record as soon as is practicable after such determination is made, not to exceed thirty days. The CCPO shall notify in writing all ACCOs of this action. (3) Interest shall not be paid where: (i) payment on the invoice is delayed because of a disagreement between an agency and a vendor over the amount of the payment and other issues concerning compliance with the terms of a contract. Payments shall be made, and as required by these Rules, interest shall be paid, on undisputed amounts; (ii) the failure to make the contract payment is the result of a lien, attachment, or other legal process against the money due to the vendor; (iii) amounts are temporarily withheld in accordance with the contract; or (iv) the amount of the interest payment is less than twenty-five dollars. (4) The following types of payments are ineligible for interest: (i) payments under the eminent domain law; (ii) payments to the federal government, to any state or City agency or their instrumentalities, to any duly constituted unit of local government or any of their related instrumentalities, to any public authority or public benefit corporation; (iii) payment in a situation where the City takes a deduction permitted by law or contract against all or part of a payment due the vendor; or (iv) where, for reasonable cause, the City determines not to release or to reduce retainage upon completion or substantial completion of a construction contract. (5) Interest that is due shall be paid within twenty days of payment of the original invoice. The failure to make an interest payment within such twenty days shall not generate additional interest. (6) The Comptroller and OMB may, for a limited period of time not to exceed thirty days per calendar year, jointly defer the City's obligation to pay interest when the City is experiencing a shortage of cash. In such event, the CCPO shall provide, at the earliest practicable opportunity, written notice to ACCOs of this action and its expected duration. Notice of this action shall be published by the CCPO in the City Record as soon as is practicable after such determination is made, not to exceed thirty days. The CCPO shall provide similar written notice of subsequent action either to extend or cancel this period of deferral. (e) Additional requirements for construction and construction-related services contracts. (1) Progress payment. An agency may not approve a request for a progress payment unless the request includes: (i) substantiation of the amounts requested, including: (A) an itemized list of the amounts requested related to the various elements of work required by the contract, (B) a listing of the amount included for work performed by each subcontractor under the contract, (C) a listing of the total amount of each subcontract under the contract, (D) a listing of the amounts previously paid to each such subcontractor under the contract, and (E) additional supporting data in a form or detail required by the contract or the resident engineer; (ii) certification by the prime contractor, that: (A) the amounts requested are only for performance in accordance with the specifications, terms, and conditions of the contract; (B) payments to subcontractors and vendors have been made from previous payments received under the contract, and timely payments will be made from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of these Rules; and (C) the application does not include any amounts that the prime contractor intends to withhold or retain from a subcontractor or vendor in accordance with the terms and conditions of their subcontract/agreement except as may be allowed. (2) Subcontracts. (i) All construction contracts awarded by the City shall include: (A) a payment clause that obligates the prime contractor(s) to pay each subcontractor and vendor (including a materials vendor) not later than seven days after receipt of payment out of amounts paid to the contractor by the City for work performed by the subcontractor or supplier under that contract and that provides for the payment of interest by the prime contractor in accordance with Section 106-b of the New York State General Municipal Law on amounts not timely paid to a subcontractor, and (B) a clause requiring the prime contractor to include in each of its subcontracts a provision requiring each subcontractor to include the same payment clause in their contracts with each lower-tier subcontractor or vendor. (ii) If a prime contractor is paid interest earned due to late payments by an agency, the proportionate share of that interest shall be forwarded by the prime contractor to each of its subcontractors and vendors. (f) Determination of appropriations against which interest penalties shall be charged. Except where otherwise required by law, an interest payment required by these Rules shall be paid from the agency expense budget of the agency awarding the contract, provided however that if the obligation to make an interest payment is incurred in whole or in part due to another agency's involvement in the payment process, then the portion of the total interest payment that is attributable to delays by that agency shall be charged to that agency's miscellaneous budget. (g) Responsibilities. Each Agency Head is responsible for the following: (1) assuring timely payments and the payment of interest penalties where required; (2) publishing lists of designated agency contacts within their payment centers or finance offices to provide vendors with assistance in determining the status of their invoices; (3) issuing internal instructions, as necessary, to implement these Rules. Such instructions shall include provisions for monitoring the causes of any interest penalties incurred, taking necessary corrective or disciplinary action, and dealing with inquiries from vendors; (4) assuring that effective control systems are established and maintained to provide reasonable assurance that administrative activities required under these Rules are effectively and efficiently carried out; (5) assuring that inspectors general and internal auditors periodically review implementation, as they and their Agency Head deem appropriate. Copies of reports on audits and reviews should be provided to the CCPO and Comptroller upon issuance. (6) establishing a quality control program to assess performance of payment systems and provide a reliable way to estimate payment performance. (h) Reporting Requirements. PPB shall coordinate and publish an annual prompt payment performance report detailing each agency's performance pursuant to Section 332 of the Charter. PPB shall additionally make cumulative prompt payment performance statistics available upon request. All reports shall be distributed to the CCPO, OMB, and Comptroller and shall be posted on the City's website in a location that is accessible by the public simultaneously with their publication. (1) Report contents. The annual prompt payment report shall contain the following information for both expense and capital expenditures: (i) agency performance in descending order by percentage of on-time payments, (ii) amount and percentage paid by the "Required Payment Date" or "Interest Eligibility Date" by agency in descending order as contrasted with the total amount eligible for payment, (iii) distribution of interest penalties paid by agencies as a result of late payments, and (iv) trend information as to how agencies are performing as compared with previous time periods, i.e., past year, past six months, quarter to quarter.

9 RCNY § 4-07 Buy-Against Procurements.

§ 4-07 Buy-Against Procurements. (a) Policy. When a vendor fails to perform or defaults on an existing contract for goods or services, and there is a continued need for the goods or services, an agency may obtain the required goods or services, as specified in the original contract, or any part thereof, from a successor vendor, pursuant to this section. In soliciting for the successor vendor, the ACCO shall obtain competition to the maximum extent practicable under the circumstances. Prior to the solicitation, the ACCO shall make a determination, including the basis thereof, that the method of source selection is in the best interest of the City. The method of source selection may include, but is not limited to, award to either the second lowest responsive and responsible bidder or next most advantageous proposer on the original solicitation at a price agreed upon between the bidder or proposer and the City. The term of a buy-against contract shall not exceed the balance of the term remaining on the original contract, without renewals, or such interval necessary to complete the original contract work as agreed upon by the ACCO and the vendor, whichever is longer. In addition, the ACCO shall, unless there are compelling mitigating circumstances, charge the non-performing vendor for any difference in price resulting from the buy-against contract, together with any administrative charge established by the agency, and shall, as appropriate, invoke such other sanctions as are available. (b) Applicability. Buy-against Procurements are not permitted in design-build procurements pursuant to 9 RCNY § 3-17(c)(3). (c) Notice of vendor selection. (1) Frequency. Notice of award of buy-against contracts shall be published once in the City Record, within fifteen days after registration of the contract. (2) Content. Such notice shall include: (i) Agency name, (ii) Procurement Identification Number, (iii) Title and/or brief description of the goods or services procured, (iv) Name and address of the successor vendor and of the original vendor, (v) Dollar value of the replacement contract, and (vi) Summary determination of the basis for the buy-against procurement. (Amended City Record 12/12/2025, eff. 1/11/2026)

9 RCNY § 4-08 Completion of Contracts Following Default or Termination for Cause of Construction and Construction-Related Service Contracts.

§ 4-08 Completion of Contracts Following Default or Termination for Cause of Construction and Construction-Related Service Contracts. (a) Policy. The City may, as appropriate, default a contractor or terminate for cause in accordance with the terms of the contract and provide for timely completion of the work on a cost-effective basis. To that end, completion of the required work shall be accomplished in as expeditious and competitive a manner as practicable in accordance with these Rules. (b) Definition. Completion contracts are contracts entered into by an agency with a vendor for completion of all or part of the work of a construction or construction-related service contract. Completion contracts shall not be considered new procurements. (c) Application. Completion contracts shall be entered into pursuant to this section in cases where: (1) the contractor has been defaulted or terminated for cause; (2) there is no surety, or after a demand has been made by the agency, the surety either fails to perform its obligations in a timely manner or elects to tender a payment of funds as performance rather than completing the work, in accordance with its obligations; and (3) there is a continuing need to complete all or part of the work. (d) Completion pursuant to contract terms and conditions. The agency may, consistent with the guidelines set forth below, include provisions in construction and construction-related service contracts for completion contracts to be used in the event of default or termination for cause. (1) The ACCO shall select from the following alternatives the most competitive alternative appropriate under the circumstances. The ACCO shall document the reasons that this is the most competitive alternative appropriate under the circumstances. The following methods, in decreasing order of competitiveness may be used: (i) solicitation of sealed bids through public notice. Notice of the availability of the IFB shall be publicly advertised at least once in the City Record. Individual notice to bidders in accordance with 9 RCNY § 3-02(e) shall not be required, but the published notice shall contain all the information required by 9 RCNY § 3-02(e); (ii) award to either the next lowest responsive and responsible bidder or next most advantageous responsive and responsible proposer on the original solicitation at a price agreed upon between the bidder or proposer and the City; (iii) solicitation of sealed bids or proposals from a prequalified list prepared in accordance with 9 RCNY § 3-10; (iv) solicitation of sealed bids or proposals from a Special Completion Contract Bidders or Proposers List. The ACCO may develop a list of available vendors competent to perform the completion contract and seek bids or proposals from at least three such vendors; or (v) negotiation with one or more contractors or subcontractors on the site. (2) For the purpose of soliciting a completion contract, the Contracting Officer shall make the following documentation available to prospective contractors: (i) a copy of the original contract, (ii) contract changes which have been approved or for which approval is pending, (iii) available documentation and/or correspondence which would aid the prospective contractor's understanding of the status and complexity of the work, (iv) payment history, and (v) information regarding subcontractors utilized by the defaulted or terminated contractor and other prime contractors working on the project, if any. (3) The Contracting Officer shall hold a walk-through of the site for prospective contractors, unless the ACCO determines that such a walk-through would not be beneficial. (4) In the event of default, the agency shall take steps to charge the defaulted contractor and/or surety, as applicable, for any additional costs and expenses arising out of or related to the completion of the work, including, without limitation, any administrative costs and the cost of any required corrective work. (e) Notification. The agency shall provide the following information to the Comptroller: (1) the contract registration number, (2) the name of defaulted contractor, (3) the date of default and a copy of default notice, (4) the completion contract source selection method utilized, (5) the name of completion contractor, and (6) a copy of the completion contract. (f) Funding. The balance of the contract funds shall be utilized for the completion contract. In the event additional funds are required, the agency shall take steps to encumber the same. (g) Notice of award. (1) Frequency. Notice of the award of a contract entered into pursuant to this section shall be published at least once in the City Record, within fifteen calendar days after registration of the contract. (2) Content. Such notice shall include: (i) agency name, (ii) PIN, (iii) title and/or brief description of the completion contract and reason for default of the contractor or termination for cause of the original contract, (iv) name and address of the replacement contractor and name and address of the original contractor, (v) dollar value of the replacement contract(s), and (vi) summary determination of the basis for the completion contract. (h) Documentation. Documents reflecting the agency determination to default the contractor or terminate for cause shall be maintained and copies of these documents shall be sent to the CCPO for inclusion in the VENDEX database.

9 RCNY § 4-09 Resolution of Disputes Arising Out of Contract Administration.

§ 4-09 Resolution of Disputes Arising Out of Contract Administration. (a) Applicability. Except as provided in (1), (2), and (3) below, this section shall apply to all disputes between the City and a vendor that arise under, or by virtue of, a contract between them. All contracts shall include a clause providing that all such disputes shall be finally resolved in accordance with the provisions of this section. Parties to contracts that do not contain this clause may by written agreement consent to the resolution of any disputes pursuant to this section. (1) This section shall not apply to disputes concerning matters dealt with in other sections of these Rules or to disputes involving patents, copyrights, trademarks, or trade secrets (as interpreted by the courts of New York State) relating to proprietary rights in computer software, or to termination other than for cause. (2) For construction, this section shall apply only to disputes about the scope of work delineated by the contract, the interpretation of contract documents, the amount to be paid for extra work or disputed work performed in connection with the contract, the conformity of the vendor's work to the contract, and the acceptability and quality of the vendor's work; such disputes arise when the Engineer, Resident Engineer, Engineering Audit Officer, or other designee of the Agency Head under the contract (as defined in the contract) makes a determination with which the vendor disagrees. For construction, this section shall not apply to termination of the contract for cause or other than for cause. (3) Notwithstanding paragraph (2) of this subdivision, this section shall not apply to contracts for the procurement of Design-Build Services pursuant to 9 RCNY § 3-17. (b) General provisions. All determinations required by this section shall be clearly stated, with a reasoned explanation for the determination based on the information and evidence presented to the party making the determination. Failure to make such determination within the time required by this section shall be deemed a non-determination without prejudice that will allow application to the next level. (c) Work to continue. During such time as any dispute is being presented, heard, and considered pursuant to this section, the contract terms shall remain in force and, unless otherwise directed by the ACCO or Engineer, work shall continue as directed. Failure of the vendor to continue the work as directed shall constitute a waiver by the vendor of its claim. (d) Presentation of dispute to agency head. (1) Notice of dispute and agency response. The vendor shall present its dispute in writing ("Notice of Dispute") to the Agency Head within the time specified by the contract or, if no time is specified, within thirty days of receiving written notice of the determination or action that is the subject of the dispute. This notice requirement shall not be read to replace any other notice requirements contained in the contract. The Notice of Dispute shall include all the facts, evidence, documents, or other basis upon which the vendor relies in support of its position, as well as a detailed computation demonstrating how any amount of money claimed by the vendor in the dispute was arrived at. Within thirty days after receipt of the complete Notice of Dispute, the ACCO or, in the case of construction, the Engineer, Resident Engineer, Engineering Audit Officer, or designee of the Agency Head under the contract, as applicable, shall submit to the Agency Head all materials he or she deems pertinent to the dispute. Following initial submissions to the Agency Head, either party may demand of the other the production of any document or other material the demanding party believes may be relevant to the dispute. The requested party shall produce all relevant materials that are not otherwise protected by a legal privilege recognized by the courts of New York State. Any question of relevancy shall be determined by the Agency Head whose decision shall be final. Willful failure of the vendor to produce any requested material whose relevancy the vendor has not disputed, or whose relevancy has been affirmatively determined, shall constitute a waiver by the vendor of its claim. (2) Agency head inquiry. The Agency Head shall examine the material and may, in his or her discretion, convene an informal conference with the vendor and the ACCO and, in the case of construction, the Engineer, Resident Engineer, Engineering Audit Officer, or designee of the Agency Head under the contract, as applicable, to resolve the issue by mutual consent prior to reaching a determination. The Agency Head may seek such technical or other expertise as he or she shall deem appropriate, including the use of neutral mediators, and require any such additional material from either or both parties as he or she deems fit. The Agency Head's ability to render, and the effect of, a decision hereunder shall not be impaired by any negotiations in connection with the dispute presented, whether or not the Agency Head participated therein. The Agency Head may or, at the request of any party to the dispute, shall compel the participation of any other vendor with a contract related to that of the party presenting the dispute, and that vendor shall be bound by the decision of the Agency Head. Any vendor thus brought into the dispute resolution proceeding shall have the same rights and obligations under this section as the vendor initiating the dispute. (3) Agency head determination. Within thirty days after the receipt of all materials and information, or such longer time as may be agreed to by the parties, the Agency Head shall make his or her determination and shall deliver or send a copy of such determination to the vendor and ACCO and, in the case of construction, the Engineer, Resident Engineer, Engineering Audit Officer, or designee of the Agency Head under the contract, as applicable, together with a statement concerning how the decision may be appealed. (4) Finality of agency head decision. The Agency Head's decision shall be final and binding on all parties, unless presented to the CDRB pursuant to this section. The City may not take a petition to the CDRB. However, should the vendor take such a petition, the City may seek, and the CDRB may render, a determination less favorable to the vendor and more favorable to the City than the decision of the Agency Head. (e) Presentation of dispute to the comptroller. Before any dispute may be brought by the vendor to the CDRB, the vendor must first present its claim to the Comptroller for his or her review, investigation, and possible adjustment. (1) Time, form, and content of notice. Within thirty days of receipt of a decision by the Agency Head, the vendor shall submit to the Comptroller and to the Agency Head a Notice of Claim regarding its dispute with the agency. The Notice of Claim shall consist of (i) a brief statement of the substance of the dispute; the amount of money, if any, claimed; and the reason(s) the vendor contends the dispute was wrongly decided by the Agency Head; (ii) a copy of the decision of the Agency Head; and (iii) a copy of all materials submitted by the vendor to the agency, including the Notice of Dispute. The vendor may not present to the Comptroller any material not presented to the Agency Head, except at the request of the Comptroller. (2) Agency response. Within thirty days of receipt of the Notice of Claim, the agency shall make available to the Comptroller a copy of all material submitted by the agency to the Agency Head in connection with the dispute. The agency may not present to the Comptroller any material not presented to the Agency Head except at the request of the Comptroller. (3) Comptroller investigation. The Comptroller may investigate the claim in dispute and, in the course of such investigation, may exercise all powers provided in §§ 7-201 and 7-203 of the New York City Administrative Code. In addition, the Comptroller may demand of either party, and such party shall provide, whatever additional material the Comptroller deems pertinent to the claim, including original business records of the vendor. Willful failure of the vendor to produce within fifteen days any material requested by the Comptroller shall constitute a waiver by the vendor of its claim. The Comptroller may also schedule an informal conference to be attended by the vendor, agency representatives, and any other personnel desired by the Comptroller. (4) Opportunity of comptroller to compromise or adjust claim. The Comptroller shall have forty-five days from his or her receipt of all materials referred to in (e)(3) to investigate the disputed claim. The period for investigation and compromise may be further extended by agreement between the vendor and the Comptroller, to a maximum of ninety days from the Comptroller's receipt of all materials. The vendor may not present its petition to the CDRB until the period for investigation and compromise delineated in this section has expired. In compromising or adjusting any claim hereunder, the Comptroller may not revise or disregard the terms of the contract between the parties. (f) Contract dispute resolution board. There shall be a Contract Dispute Resolution Board composed of: (1) the chief administrative law judge of OATH or his/her designated OATH administrative law judge, who shall act as chairperson, and may adopt operational procedures and issue such orders consistent with this section as may be necessary in the execution of the CDRB's functions, including, but not limited to, granting extensions of time to present or respond to submissions; (2) the CCPO or his/her designee; any designee shall have the requisite background to consider and resolve the merits of the dispute and shall not have participated personally and substantially in the particular matter that is the subject of the dispute or report to anyone who so participated, and (3) a person with appropriate expertise who is not an employee of the City. This person shall be selected by the presiding administrative law judge from a prequalified panel of individuals, established and administered by OATH, with appropriate background to act as decision-makers in a dispute. Such individuals may not have a contract or dispute with the City or be an officer or employee of any company or organization that does, or regularly represent persons, companies, or organizations having disputes with the City. (g) Petition to CDRB. In the event the claim has not been settled or adjusted by the Comptroller within the period provided in this section, the vendor, within thirty days thereafter, may petition the CDRB to review the Agency Head determination. (1) Form and content of petition by vendor. The vendor shall present its dispute to the CDRB in the form of a Petition, which shall include (i) a brief statement of the substance of the dispute; the amount of money, if any, claimed; and the reason(s) the vendor contends that the dispute was wrongly decided by the Agency Head; (ii) a copy of the decision of the Agency Head; (iii) copies of all materials submitted by the vendor to the agency; (iv) a copy of the decision of the Comptroller, if any; and (v) copies of all correspondence with, and material submitted by the vendor to, the Comptroller's Office. The vendor shall concurrently submit four complete sets of the Petition: one to the Corporation Counsel (Attn: Commercial and Real Estate Litigation Division), and three to the CDRB at OATH's offices, with proof of service on the Corporation Counsel. In addition, the vendor shall submit a copy of the statement of the substance of the dispute, cited in (i) above, to both the Agency Head and the Comptroller. (2) Agency response. Within thirty days of receipt of the Petition by the Corporation Counsel, the agency shall respond to the statement of the vendor and make available to the CDRB all material it submitted to the Agency Head and Comptroller. Three complete copies of the agency response shall be submitted to the CDRB at OATH's offices and one to the vendor. Extensions of time for submittal of the agency response shall be given as necessary upon a showing of good cause or, upon the consent of the parties, for an initial period of up to thirty days. (3) Further proceedings. The Board shall permit the vendor to present its case by submission of memoranda, briefs, and oral argument. The Board shall also permit the agency to present its case in response to the vendor by submission of memoranda, briefs, and oral argument. If requested by the Corporation Counsel, the Comptroller shall provide reasonable assistance in the preparation of the agency's case. Neither the vendor nor the agency may support its case with any documentation or other material that was not considered by the Comptroller, unless requested by the CDRB. The CDRB, in its discretion, may seek such technical or other expert advice as it shall deem appropriate and may seek, on its own or upon application of a party, any such additional material from any party as it deems fit. The CDRB, in its discretion, may combine more than one dispute between the parties for concurrent resolution. (4) CDRB determination. Within forty-five days of the conclusion of all submissions and oral arguments, the CDRB shall render a decision resolving the dispute. In an unusually complex case, the CDRB may render its decision in a longer period of time, not to exceed ninety days, and shall so advise the parties at the commencement of this period. The CDRB's decision must be consistent with the terms of the contract. Decisions of the CDRB shall only resolve matters before the CDRB and shall not have precedential effect with respect to matters not before the CDRB. (5) Notification of CDRB Decision. The CDRB shall send a copy of its decision to the vendor, the ACCO, the Corporation Counsel, the Comptroller, the CCPO, and, in the case of construction, the Engineer. A decision in favor of the vendor shall be subject to the prompt payment provisions of these Rules. The Required Payment Date shall be thirty days after the date the parties are formally notified of the CDRB's decision. (6) Finality of CDRB decision. The CDRB's decision shall be final and binding on all parties. Any party may seek review of the CDRB's decision solely in the form of a challenge, filed within four months of the date of the CDRB's decision, in a court of competent jurisdiction of the State of New York, County of New York pursuant to Article 78 of the Civil Practice Law and Rules. Such review by the court shall be limited to the question of whether or not the CDRB's decision was made in violation of lawful procedure, was affected by an error of law, or was arbitrary and capricious or an abuse of discretion. No evidence or information shall be introduced or relied upon in such proceeding that was not presented to the CDRB in accordance with this section. (h) Final decision not impaired by contract termination. Any termination, cancellation, or alleged breach of the contract prior to or during the pendency of any proceedings pursuant to this section shall not affect or impair the ability of the Agency Head or CDRB to make a binding and final decision pursuant to this section. (Amended City Record 12/12/2025, eff. 1/11/2026)

9 RCNY § 4-10 Debarment and Suspension.

§ 4-10 Debarment and Suspension. (a) Applicability. It is the policy of the City that vendors are not subject to debarment pursuant to these Rules and agencies may not debar vendors based on the grounds set forth in this section. The activities and conduct indicated to be grounds for debarment listed in this section, however, are specifically referenced in City construction contracts as grounds for default. So as not to disturb the effect of those contract provisions with respect to default, the listing of the grounds for debarment shall remain in these Rules, although agencies may not use such grounds to institute a debarment proceeding. (b) Grounds for debarment. (1) Grounds for debarment include the following acts or omissions on the part of the vendor or any of its officers, directors, partners, five percent shareholders, principals, or other person substantially involved in its activities: (i) indictment or conviction under any state or federal law of any of the following except that indictment alone may be a cause for debarment only for such time as the indictment continues: (A) a criminal offense incident to obtaining or attempting to obtain or performing a public or private contract; (B) fraud, embezzlement, theft, bribery, forgery, falsification or destruction of records, or receiving stolen property; (C) a criminal violation of any state or federal antitrust law; (D) violation of the Racketeer Influence and Corrupt Organization Act, 18 U.S.C. §§ 1961 et seq, or the Mail Fraud Act, 18 U.S.C. §§ 1341 et seq, for acts in connection with the submission of bids or proposals for a public or private contract; (E) conspiracy to commit any act or omission that would constitute grounds for conviction or liability under any statute described in subparagraph (D) above; or (F) an offense indicating a lack of business integrity that seriously and directly affects responsibility as a City vendor; (ii) judgment of civil liability under any state or federal antitrust law for acts or omissions in connection with the submission of bids or proposals for a public or private contract; (iii) arrears on any debt or contract with the City or any agency, default as surety or otherwise upon any obligation to the City or any agency, or arrears for taxes; (iv) violation of contract provisions, as set forth below: (A) failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract, or (B) unsatisfactory performance in connection with the terms of one or more contracts; (v) an agency determination of non-responsibility or debarment by another governmental entity or public authority; (vi) violation of the provisions of Section 1304 or 1305 of the Charter or any rule promulgated pursuant thereto; (vii) making or causing to be made any false, deceptive, or fraudulent material statement in any bid, proposal, or application for City or other government work; (viii) use of unauthorized subcontractors; (ix) refusal to cooperate with reasonable requests of City inspectors and representatives with respect to work under the contract provisions, plans, or specifications; (x) improper conduct, including but not limited to, intentional or grossly negligent billing irregularities, submitting false or frivolous or exaggerated claims, falsification of documents or records, willful destruction of documents or records the vendor had an obligation to maintain, bribery, use of false or deceptive statements to obtain some benefit, causing competition to be restrained or limited, misrepresentation, falsely claiming to be a minority- or woman-owned or small business, violation of ethical standards established by the City, and other dishonesty incident to obtaining, prequalifying for, or performing any contract or modification thereof; or (xi) any other cause sufficiently serious and compelling that a reasonable person would seriously doubt the capability of the vendor to perform City procurement requirements. (2) A vendor may also be debarred if: (i) it was founded or established, or operates in a manner designed, to evade the application or defeat the purpose of these Rules, or (ii) it is a successor, assignee, subsidiary, or affiliate of a suspended or debarred vendor. (3) Imputed conduct. (i) The fraudulent, criminal, or other improper conduct of any officer, director, shareholder, partner, employee, or other individual associated with a vendor may be imputed to that vendor when the conduct occurred in connection with the individual's performance of duties for or on behalf of the vendor or with the vendor's knowledge, approval, or acquiescence. The vendor's acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval, or acquiescence. (ii) The fraudulent, criminal, or other improper conduct of a vendor may be imputed to any officer, director, shareholder, partner, employee, or other individual associated with that vendor who participated in, knew of, or had reason to know of the vendor's conduct. (iii) The fraudulent, criminal, or other seriously improper conduct of one vendor participating in a joint venture or similar arrangement may be imputed to the other participating vendors if the conduct occurred for or on behalf of the joint venture or other similar arrangement, or with the knowledge, approval, or acquiescence of these vendors. Acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval, or acquiescence. (c) Suspension. (1) An agency petitioning OATH for the debarment of a vendor or having knowledge of facts that may form the basis of such a petition may in its exclusive discretion suspend such vendor from consideration for the award of any procurement with the City. The decision to suspend a vendor shall be made by the ACCO and shall not be delegated. (2) A suspension shall be effective for no longer than three months, except that delay of a debarment proceeding that is caused by a suspended vendor shall be deemed to be consent by that vendor to an extension of the suspension beyond the three-month maximum. The period of such extension shall be equal to the period of such delay caused by the vendor. When an issue regarding delay is raised by either party or the administrative law judge, the vendor shall bear the burden of demonstrating that the delay was not caused by the vendor. (3) Appeal. All suspensions may be appealed as set forth herein. (i) Time limit. A vendor shall have ten days from receipt of the agency's notification to file a written appeal with the Agency Head. Receipt of notice by the vendor shall be deemed to be no later than five days from the date of mailing or upon delivery, if delivered. Filing of the appeal shall be accomplished by actual delivery of the appeal document to the office of the Agency Head. (ii) Form and content. The appeal shall be in writing and shall briefly state all the facts or other basis upon which the vendor contests the suspension. Supporting documentation, if any, shall be included. (iii) Determination. Solicitation, award, or performance of a procurement shall not be delayed, except at the discretion of the Agency Head, because of an appeal filed pursuant to this section. The Agency Head shall consider the appeal and shall make a prompt written decision with respect to its merits, a copy of which shall be sent to the vendor. The Agency Head's decision shall be final. The Agency Head may not delegate the authority to make a decision on the appeal to the ACCO. (d) Hearing procedure for debarment. (1) The proceedings shall be conducted in accordance with the rules of OATH. The hearing shall be limited to the allegations and other issues placed in controversy by the pleadings. (2) The vendor shall file an answer within the time provided by the rules of OATH. The answer shall include an admission, denial, or other response to each of the allegations in the petition, and the omission of such a response to any allegation in the petition shall be deemed an admission of that allegation. Should the vendor fail to file a timely answer to the petition, all of the allegations of the petition shall be deemed to be admitted, and the hearing shall be limited to submissions and argument concerning the scope and period of the debarment to be imposed. (3) At any time before any debarment, the vendor and the petitioning agency may enter into an informal disposition agreement relating to the debarment. (e) Scope of sanctions. (1) OATH may, in debarring a vendor, disqualify that vendor from being awarded a procurement, performing as a subcontractor, providing supplies for a procurement, and/or exercising a renewal option. OATH may impose such sanctions upon the vendor's activities with a single agency or any combination of agencies, and to a single type of procurement or any combination of procurement types. The period of debarment, including any suspension pending OATH's decision, may not exceed five years. In determining the scope or period of a vendor's debarment, OATH may impose such conditions on the vendor's City activities as it considers appropriate, including, but not limited to, monitoring of the vendor's future procurement activities with the City. (2) At the time of debarment, or at any time thereafter, any Agency Head may exercise the City's right to terminate for convenience an existing contract between that agency and the debarred vendor, or may prohibit any modification, extension, or renewal of any such contract. In such case, the vendor shall be entitled to receive only payment for the work performed until that point. (f) Notice. (1) The agency shall forward copies of all documents required or permitted by this section to OATH, Corporation Counsel, the CCPO, the Comptroller, DOI, and the PPB. The CCPO shall include all pertinent information in the VENDEX database. (2) A list of vendors currently suspended or debarred, including a summary of the scope of the suspension or debarment, shall be published monthly in the City Record by the CCPO. This list shall include the following information: (i) the name of the vendor and its principals, (ii) the name of the agency that initiated the debarment proceeding and/or that suspended the vendor, (iii) the effective date and scope of the debarment or suspension, and (iv) the termination date of the debarment.

9 RCNY § 4-11 Hearings on Borough President Complaints.

§ 4-11 Hearings on Borough President Complaints. (a) Borough president contract evaluation. A Borough President may receive information concerning the delivery of services in the borough pursuant to a contract with the City or an agency of the City. (b) Finding by borough president. If a Borough President determines there is reason to believe a term or condition of a contract providing for the delivery of services in the borough is not being complied with, he or she shall set forth in writing the facts which form the basis of that determination, and shall state a recommendation concerning whether one of the following courses of action should be taken by the agency administering the contract: (1) the contract should be terminated for noncompliance; (2) the terms and conditions of the contract should be modified prior to the expiration of its term where the contract provides for such modification or the contractor consents; (3) the contract should be allowed to continue in effect during its term, but should not be renewed upon the expiration of its term; (4) the contract should be allowed to continue in effect during its term, but the terms and conditions of the contract should be modified at the time of renewal; or (5) the existing terms of the contract should be enforced in some manner by the agency administering the contract. (c) Transmittal of determination. The Borough President shall transmit to the Agency Head of the agency administering the contract a copy of the determination and recommendation made pursuant to 9 RCNY § 4-11(b). (d) Time period for recommendation affecting renewal of contract. In the case of a recommendation that a contract should not be renewed or should be modified at the time of renewal, such recommendation shall be made to the Agency Head at least one hundred and twenty days prior to the expiration of the contract. (e) Agency head response. The Agency Head shall make a written response to the Borough President's findings and recommendation within ten days from receipt of such findings, indicating what action, if any, shall be taken by the agency. (f) Contract performance panel hearing. If action determined by the Agency Head is not satisfactory to the Borough President, the Borough President may, within thirty days of receipt of such response, require that a hearing be held in the borough pursuant to this subdivision. (1) Within ten days of receipt of the Agency Head response, the Borough President shall deliver to the Public Advocate, the Comptroller, and the Mayor, a demand that a hearing in the borough be held on the subject of the contract. The Borough President shall fix a time and place within the borough for a hearing on the subject. (2) Within ten days of submission of the demand of the Borough President, the Public Advocate, the Comptroller, and the Mayor shall designate persons to receive the testimony of the Borough President and other interested persons on the Borough President's recommendations. (3) Unless otherwise agreed to by the Borough President, the hearing shall be held within twenty days from receipt of the demand of the Borough President. (4) The Agency Head which procured the services in question, or a designee of such Agency Head, and the contractor whose performance is being evaluated, shall have the right, and it shall be their duty when requested by the panel, to appear and be heard. (5) The hearing shall be open to the public, and there shall be an audiotape or transcript made of the proceedings. (6) The hearing may be continued from day to day as deemed necessary and appropriate in the discretion of the panel. It shall be the panel's duty to ensure that the hearing is expeditious and not unduly prolonged and in no event shall the hearing continue past the fortieth business day after receipt of the Borough President's demand for a hearing. (g) Panel recommendations. Within thirty days of the conclusion of such hearing, the panel shall make a determination recommending such action as it deems appropriate. The panel shall promptly deliver its recommendation in writing to the Agency Head, Borough President, and contractor. (h) Agency head response. Within thirty days of receipt of the panel's recommendation, the Agency Head shall respond in writing to the panel and the Borough President, indicating which, if any, of the panel's recommendations shall be acted upon and what, if any, alternative action will be taken. (i) Multiple borough president complaints. In the case of any contract as to which more than one Borough President has submitted a determination in accordance with subdivision (b) of this section, the agency receiving such determinations shall provide to each such Borough President a copy of the agency response submitted in accordance with subdivision (e) of this section. If more than one Borough President in such a case shall demand a hearing, only one hearing shall be held, at a time and place to be determined by the Borough Presidents. If a hearing is held, it shall include the comments of all such Borough Presidents.

9 RCNY § 4-12 Late Registration.

§ 4-12 Late Registration. (a) Policy. (i) No contract shall be implemented until the procedures set forth in Section 328 of the Charter have been followed. (ii) In the circumstance wherein an expiring contract for client services is to be replaced by a new contract awarded from an RFP pursuant to 9 RCNY § 3-03 or via HHS Accelerator pursuant to 9 RCNY § 3-16, renewed pursuant to 9 RCNY § 4-04 or extended pursuant to 9 RCNY §§ 3-04(b)(2)(iii) or 4-02(b)(1)(iii), the agency should notify the selected vendor of its selection by no later than ninety (90) days prior to the expiration date of the contract that is to be replaced, renewed or extended. Earlier notification is preferable, particularly where the agency anticipates that the vendor will be required to file a new VENDEX questionnaire pursuant to 9 RCNY § 2-08(e)(2). In addition, where an agency proposes to continue services by means of a new RFP award, the Notice of Solicitation for such RFP should be published by the agency pursuant to 9 RCNY § 3-03(d), or by the HHS Accelerator Director pursuant to 9 RCNY § 3-16(b)(1), by no later than two hundred fifty (250) days prior to the expiration of the contracts to be replaced. (b) Timeliness of submission for registration. (i) The provisions of this subdivision shall apply to client service contracts and extensions: contracts awarded by negotiated acquisition where there is a compelling need to extend the contract one or more times beyond the cumulative twelve-month limit, pursuant to 9 RCNY § 3-04(b)(2)(iii); contracts for which no public notice and comment is required pursuant to these Rules because they do not differ materially in terms and conditions from contracts currently held by the City where the parties to such contracts are the same, pursuant to 9 RCNY § 2-11(b)(3); extensions of contract terms for a cumulative period not to exceed one year, pursuant to 9 RCNY § 4-02(b)(1)(iii); and renewal contracts, pursuant to 9 RCNY § 4-04. Notwithstanding the above, contracts awarded pursuant to 9 RCNY § 1-02(e) shall not be subject to the provisions of this subdivision. (ii) Any agency that submits such a contract or extension to the Comptroller for registration after the start date of such contract shall be deemed to have submitted the contract in an untimely manner, unless the ACCO determines that the vendor's conduct constituted a material cause of such late submission. The ACCO shall not make such a determination against a vendor unless the agency met the timely notification set forth in subdivision (a)(ii) above, i.e., by notifying the vendor at least ninety (90) days prior to the expiration of the contract to be replaced. (c) Substantial compliance. The CCPO shall review each agency's performance under this Section at least twice each year. Any agency that the CCPO determines is generally submitting contracts in an untimely manner as defined in this Section, i.e., is not in substantial compliance with the provisions of subdivision (b) of this Section, shall be required to make interest payments in accordance with subdivision (d) for any subsequent contracts that are submitted to the Comptroller for registration in an untimely manner. The CCPO may, upon application of an agency previously determined not to be in substantial compliance with the provisions of this Section, review the agency's intervening performance, and may determine that the agency is now in substantial compliance with the provisions of this Section. An agency shall not be required to make late registration payments for contracts entered into by the agency subsequent to such a determination. (d) Interest payments. (i) An agency required to make interest payments under this Section shall make them for the period commencing thirty (30) days after the start date of the contract and ending with the date the contract is registered. Interest payments shall be made only to reimburse the vendor for interest actually incurred by the vendor pursuant to a loan taken out by the vendor; where such loan was used and interest incurred because of the untimely registration of a contract. The rate at which such interest is reimbursed shall not exceed the maximum rate allowed by law or the rate set jointly by the Comptroller and OMB pursuant to 9 RCNY § 4-06, whichever is lower. The amount of the loan on which the interest payments are based shall not be greater than the amount due under the contract prior to registration. No interest shall be paid if the vendor had been previously offered an interest-free loan in connection with the contract in question, but declined to accept it. (ii) The Comptroller and OMB may, for a limited period of time not to exceed thirty days per calendar year, jointly defer the City's obligation to pay interest when the City is experiencing a shortage of cash. In such event, the CCPO shall provide, at the earliest practicable opportunity, written notice to ACCOs of this action and its expected duration. Notice of this action shall be published by the CCPO in the City Record as soon as is practicable after such determination is made, not to exceed thirty days. The CCPO shall provide similar written notice of subsequent action either to extend or cancel this period of deferral. (iii) Except where otherwise required by law, an interest payment required by these Rules shall be paid from the agency expense budget of the agency awarding the contract, provided however that if the obligation to make an interest payment is incurred in whole or in part due to another agency's involvement in the procurement process, then the portion of the total interest payment that is attributable to delays by that agency shall be charged to that agency's miscellaneous budget. (Amended City Record 8/27/2025, eff. 9/26/2025)

9 RCNY § 4-13 Subcontracts.

§ 4-13 Subcontracts. (a) Policy. Consistent with the terms of the contract, a vendor may enter into subcontracts where the contracting agency approves. The City has an interest in ensuring that all City work is performed by appropriate persons. (b) Form. All subcontracts made by the vendor shall be in writing. A vendor shall not be entitled to payment for any work performed by a subcontractor prior to the vendor entering into a written subcontract with the subcontractor and complying with the provisions of this section. (c) Approval. All subcontractors must be approved by the agency prior to commencing work under the subcontract. (d) Approval Process. (1) Before entering into any subcontracts, the vendor shall submit a written statement to the agency giving the name and address of the proposed subcontractor, the portion of the work and materials that the subcontractor is to perform and furnish, and the estimated cost of the subcontract. (2) Upon receipt of the above, the agency in its discretion may grant or deny preliminary approval for the vendor to contract with the subcontractor. (3) The Agency shall notify the vendor within thirty days whether preliminary approval has been granted. If preliminary approval is granted the vendor shall provide such documentation as may be requested by the agency to show that the proposed subcontractor has the necessary facilities, skill, integrity, past experience and financial resources to perform the required work, including, as applicable, but not limited to: (i) Completed VENDEX questionnaires, if and as required under 9 RCNY § 2-08(e); (ii) References; (iii) Licenses; (iv) Documentation that the subcontractor has been certified by DSBS as a minority-owned, women-owned or emerging business enterprise. (4) Upon receipt of all relevant documentation, the agency shall notify the vendor in writing whether the proposed subcontractor is approved. If the proposed subcontractor is not approved, the vendor may submit another proposed subcontractor unless the vendor decides to do the work. No subcontractor shall be permitted to perform work unless approved by the agency. (e) Change of Subcontractor. For construction contracts where a list of subcontractors has been submitted in accordance with 9 RCNY § 3-02 (b)(xx)(J), any change of subcontractor or agreed-upon amount to be paid to a subcontractor shall require the approval of the City upon a showing of a legitimate construction need for such change. A legitimate construction need shall include, but not be limited to, a change in project specifications, a change in construction material costs, a change to subcontractor status as determined to Section 222(2)(e) of the New York State Labor Law, or the subcontractor has become otherwise unwilling, unable or unavailable to perform the subcontract. Documents relating to the City's approval of changes of subcontractors pursuant to this subdivision shall be open to public inspection. (f) Payment. Payment to subcontractors shall be made in accordance with 9 RCNY § 4-06(e)(2). (g) Privity. The approval by the City of a subcontractor shall not establish privity between that subcontractor and the City or relieve the vendor of any obligations under the contract.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-145260Fetched: 10/24/2026