How Philadelphia’s Professional Services Contracts Can Be Improved
The city of Philadelphia contracts with vendors to provide services to residents—including meals for people experiencing homelessness, care for at-risk youth, and behavioral health treatment. These professional services agreements, often made with nonprofit organizations, are a significant way in which local government engages with residents.
The Pew Charitable Trusts and Bennett Midland, a civic sector consulting firm, examined professional services agreements that the city held from fiscal year 2020 through January 2025 and found that 90% of the contracts were “conformed,” or signed and executed, after their start date—meaning that the vendors could not be paid for their work. These payment delays affect vendors’ cash reserves and staffing, often requiring them to open expensive lines of credit.
This report examines these agreements, along with how Philadelphia conducts procurement and why so many agreements conform late, and it offers recommendations for resolving the issue.
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