An In-Depth Look at Professional Services Contracting in Philadelphia

Philadelphia signs nearly 2,300 professional services contracts per year, averaging $3.8 billion in allocations, yet the majority don’t begin on time, according to a new report by civic sector consulting firm Bennett Midland. These delays cause late payments to vendors, which in turn can affect the delivery of services to residents and slow the business of local government. Therefore, the report recommended process changes that could help prevent delays and benefit vendors, city staff, and Philadelphians alike.

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In its December 2025 study “City of Philadelphia Professional Services Conformance Reform,” for which The Pew Charitable Trusts provided funding and data analysis, Bennett Midland examined professional services contracts with the city from fiscal year 2020 through January 2025. And it found that 90% of the agreements with both for-profit and nonprofit organizations—to deliver services to residents, including mental health and substance use treatment, child welfare services, and gun violence reduction interventions—were “conformed,” or executed, after their start date.

Delays in conformance are largely driven by the overwhelming number of contracts that the city signs annually—stemming from a reliance on single-year agreements—and a lack of robust systems to help city staff process contracts on time.

The report includes 26 recommendations across the breadth and depth of professional services agreements, with the top five priorities being:

1. Revise the City Charter to enable departments to enter into multiyear contracts.
2. Coordinate approvals and planning for first-quarter contracts.
3. Redefine and resource the Procurement Department.
4. Develop a comprehensive citywide training program on procurement.
5. Maintain and expand targeted support for departments.

Bennett Midland and Pew also interviewed more than 40 city employees from over 15 departments as part of this project. And throughout the study, the organizations engaged with the City Contracting Working Group, a task force consisting of senior officials from throughout Mayor Cherelle Parker’s administration. The working group was created to assess and inform this report’s analysis, findings, and recommendations.

To learn more, read the report PDF, the project’s methodology, or a short analysis about the study.