Request for Information - S.M.A.R.T. Contracts Initiative.pdf

REQUEST FOR INFORMATION (RFI)

S.M.A.R.T. Contracts Initiative: An Alternative Method for Structuring Select Public Works Contracts

The City of Philadelphia is seeking input to help inform the design of a proposed S.M.A.R.T.

Contracts Initiative, which would establish an alternative method of structuring and managing select public works contracts. Input received through this Request for Information

(RFI) will help shape the initiative and inform the development of a potential Request for

Proposals (RFP). The initiative is intended to expand contracting opportunities for small and local businesses while advancing the City's economic opportunity goals.

July 13th, 2026

Cherelle Parker, Mayor

Michael Carroll, Deputy Managing Director

Office of Transportation and Infrastructure Systems

Nadir Jones, Director

Mayor’s Office of Business Impact and Economic Advancement

Ronald Hovey, Commissioner

Procurement Department

1. RESPONSE CALENDAR

Date Event

July 13th, 2026 RFI Posted

July 22nd before 5pm

(Local Philadelphia Time)

Deadline for questions, requests for clarification, or requests for additional information

(abigail.hughes@phila.gov)

July 29th, 2026 City Responds to Questions

(https://contracts.phila.gov)

August 12th before 5pm

(Local Philadelphia Time)

Responses to RFI due

2. ABOUT THE CITY OF PHILADELPHIA

The City of Philadelphia is committed to expanding economic opportunity for small, local, and historically underutilized businesses. In 2025, the City formalized this commitment through the establishment of the Mayor’s Office of Business Impact and Economic

Advancement (BIEA), which oversees Citywide efforts to strengthen business growth and expand access to economic opportunity. BIEA includes both the Office of Business Growth

(OBG) and the Office of Economic Opportunity (OEO).

To advance this work, BIEA, in partnership with the Office of Transportation and

Infrastructure Systems (OTIS) and the Procurement Department, is exploring strategies to make City contracts more accessible to small and local businesses through the S.M.A.R.T.

Contracts Initiative.

The Managing Director’s Office of Transportation and Infrastructure Systems (OTIS) coordinates policy, planning, and decision-making among internal and external stakeholders that manage transportation and utilities infrastructure. The Infrastructure

Solutions Team (IST) sits within OTIS and was created to expand wealth-building opportunities for Philadelphians. IST does this through the strategic use of public infrastructure investment aimed at expanding workforce diversity and increasing contracting opportunities for historically underutilized businesses.

The Procurement Department is responsible for assisting the City in procuring all materials and services needed to serve its residents. This includes public works projects.

3. PURPOSE OF THIS REQUEST FOR INFORMATION

The City of Philadelphia (City) has issued this Notice of Request for Information (RFI) to solicit input from qualified construction management firms and the public works contracting community regarding approaches to designing, implementing, and managing the S.M.A.R.T. Contracts Initiative.

The City has developed an initial framework for the S.M.A.R.T. (Strategic, Market-Aligned, Right-sized, Targeted) Contracts Initiative. However, because this approach would represent a new way of organizing and managing select contracts, the City is seeking input to test key assumptions, identify implementation considerations, and strengthen the design before potentially issuing a Request for Proposals (RFP) to procure a contract management consultant who would act as the Owner’s Representative and manage the program.

The City is not seeking proposals at this stage and is under no obligation to issue a subsequent RFP.

Respondents are encouraged to identify considerations, approaches, and options that may not currently be reflected in the City’s understanding, and that should be considered in shaping any future scope of work or evaluation criteria.

Any concepts identified as a result of this RFI would undergo further review by the City’s

Law Department to ensure compliance with all applicable local, state, and federal laws and regulations.

4. PROJECT BACKGROUND AND OBJECTIVES

Background

Despite representing 78% of all Philadelphia firms, small and local businesses received only

27% of City contract funding in FY 2024 (Econsult Small and Local Business Study, 2025). This disparity underscores structural barriers in City contracting. Contract size and complexity, financial pre-qualifications, and lack of prior experience working with the City can make many contract opportunities inaccessible to small and local firms. These barriers reduce the pool of qualified firms which, in turn, limits market competition and slows the delivery of essential public infrastructure projects.

The City is launching numerous programs aimed at addressing the barriers that small and local firms face in City contracting, including:

• Capital Access and Bonding Program: Connects firms to capital and bonding, increasing their financial capacity to take on City contracts.

• Mentor Protege Program: Provides small and local firms with classroom instruction and hands-on training, building a pipeline of trained “proteges” prepared to compete for and deliver critical public works projects. During the pilot year, this program will focus on ADA curb ramp construction.

Together, the Capital Access and Bonding Program and the Mentor Protégé

Program will help increase the financial and technical capacity of small, local, and historically underutilized firms. However, capacity-building alone is not sufficient to expand participation in City contracting. To create meaningful pathways into prime contracting, City contracts must be designed to align with the scale, experience, and operational capability of small and local firms.

To further Mayor Parker’s vision of expanding economic opportunity for all, the City is exploring the development of a S.M.A.R.T. Contracts Initiative to better structure select public works contracting opportunities for small and local business participation.

Objectives

The objectives of the S.M.A.R.T. Contracts Initiative are as follows:

1. Expand access to public works contracting opportunities by creating a pipeline of

Strategic, Market-Aligned, Right-sized, and Targeted (S.M.A.R.T.) Contracts.

2. Create a clear pathway for small and local firms, as well as graduates of the City’s

Mentor Protege Program, to serve as prime contractors on City work.

5. PROPOSED STRUCTURE AND MANAGEMENT FRAMEWORK

Please note: The structure and management framework outlined below is currently being further researched and developed to ensure compliance with all applicable local, state, and federal laws.

Proposed Structure

The City of Philadelphia wants to establish a pipeline of Strategic, Market-Aligned, Right-sized, and Targeted (S.M.A.R.T.) contracts:

• Strategic: Repeatable work tasks that do not require complex coordination or large startup costs.

• Market-Aligned: Public Works projects that reflect the capacity and availability of local vendors.

• Right-sized: Contracts sized to align with labor and financial capacity of small and local firms.

• Targeted: Building on existing programs and legislation, the Initiative would use procurement tools like those listed below to target contract opportunities at small and local businesses - including participants who have successfully completed the City’s Mentor-Protégé Program.

Examples of work that might align with this framework include street ditch repairs, traffic calming measures, ADA curb ramp installation, sidewalk repairs, green stormwater infrastructure, and roofing.

The City is exploring the use of the following three contract structures aimed at targeting

S.M.A.R.T. Contract opportunities at small, local, and historically underutilized businesses, including participants in the City’s Mentor Protege Program:

Contract

Structure

Community Level

Contracting Model

Prequalification

Tiers Model

Best Value

Procurement

Model

Procurement

Method

Compete via Best Value

RFP

To be determined by

Procurement

Commissioner

Compete via Best Value

RFP

How it

Works

• Multiple prime contractors awarded under one master contract

• Work orders are assigned via rotating “Vendor

Bench” creating recurring prime contracting opportunities for small and local businesses, including Mentor

Protégé participants.

• Vendor Bench is a prequalified pool of vendors

• One prime contractor is awarded a contract

• Firms are prequalified to compete for contracts within designated dollar thresholds

• Mentor Protégé participants are automatically prequalified upon completion of the program

• One prime contractor is awarded a contract via Best

Value RFP

• Mentor-Protégé participation may be considered as a bonus factor or within the technical evaluation

Contract

Size

$300K or less $500,000 or less

(adjusted every fiscal year)

$1M or less

Proposed Management Framework

The City is exploring having the S.M.A.R.T. Contracts Initiative be managed by a third-party construction management consultant, who would act as an Owner’s Representative. In this role, the Owner’s Representative would report directly to the City (the Owner) and would be responsible for managing a portfolio of prime contractors who are completing various public works projects through the S.M.A.R.T. Contracts Initiative. Respondents to this RFI have the opportunity in Appendix A to provide input on the specific role and responsibilities of the Owner’s Representative.

6. HOW TO RESPOND

One electronic copy in machine-readable format (PDF preferred) should be sent via email to abigail.hughes@phila.gov with the subject line “[Firm Name] – S.M.A.R.T. Contracts RFI

Submission.” Your submission should include the completed Exhibit A: RFI Response

Template. Email attachments should not exceed 10 MB in total size. If large attachments are required, please use a file sharing service.

Responses must be received no later than August 12th, before 5PM, Local Philadelphia

Time.

7. RFI CONTACT INFORMATION FOR QUESTIONS OR REQUESTS FOR CLARIFICATION

All questions and requests for clarification concerning this RFI must be in writing and submitted via email no later than 5:00 pm, Local Philadelphia Time, on

Wednesday, July 22nd, 2026 to:

Abigail Hughes

Infrastructure Economy Project Manager

Office of Transportation and Infrastructure Systems (OTIS)

Abigail.Hughes@phila.gov

Responses to any questions or requests shall be at the City’s sole discretion and nothing in the RFI shall create an obligation on the City to respond to the submitting party or at all.

All responses to questions will be posted to this website (https://contracts.phila.gov) no later than Wednesday, July 29th, 2026. Vendors should not contact City staff; all communications regarding this RFI must be conveyed through the Contact Person who will contact staff as necessary for responses.

All responses to this RFI will be used for information purposes. This is not a request for a proposal of any kind. The City of Philadelphia will not pay for any information received or costs incurred in preparing responses to the RFI; therefore, any costs associated with voluntary responses are solely at the discretion of the interested vendor.

Responses to questions about this RFI by any City employee or agent of the City are not binding and shall not in any way be considered as a commitment by the City of Philadelphia.

8. USE OF RESPONSES

Responses submitted to this RFI may be used by the City of Philadelphia to inform the development of a future Request for Proposals (RFP), including the definition of scope, contract structure, and evaluation criteria for the S.M.A.R.T. Contracts Initiative.

Submission of a response to this RFI is not a prerequisite for participation in any future procurement. All qualified vendors may respond to any future solicitation issued by the

City, regardless of participation in this RFI.

The City may use information provided in RFI responses for planning and procurement development purposes only. No vendor will be awarded a contract solely on the basis of a response to this RFI.

Upon submission, a Respondent’s Response shall be the property of the City and will not be returned.

9. CONFIDENTIALITY AND PUBLIC DISCLOSURE

Respondents shall treat all information obtained from the City which is not generally available to the public as confidential and/or proprietary to the City. Respondents shall exercise all reasonable precautions to prevent any information derived from such sources from being disclosed to any other person. No other party, including any Respondent, is intended to be granted any rights hereunder.

By submitting a response to this RFI, Respondent acknowledges and agrees i) that the City is a “local agency” under and subject to the Pennsylvania Right-to-Know Law (the “Act”), 65

P.S. §§ 67.101-67.3104, as the Act may be amended from time to time; and ii) responses may be subject to public disclosure under the Act. In the event the City receives a request under the Act for information that a Respondent has marked as confidential, the City will use reasonable efforts to consult with Respondent regarding the response and, to the extent reasonably practicable, will give Respondent the opportunity to identify information that Respondent believes to be confidential proprietary information, a trade secret, or otherwise exempt from access under Section 708 of the Act. Notwithstanding anything to the contrary contained in this RFI, nothing in this RFI shall supersede, modify, or diminish in any respect whatsoever any of the City’s rights, obligations, and defenses under the Act, nor will the City be held liable for any disclosure of records, including information that the

City determines in its sole discretion is a public record and/or information required to be disclosed under the Act.

10. RIGHTS AND OPTIONS RESERVED

In addition to the rights reserved elsewhere in this RFI, the City reserves and may exercise, at its sole and absolute discretion, any one or more of the following rights and options with respect to this RFI if the City determines that doing so is in the best interest of the City and the S.M.A.R.T. Contracts Initiative:

a. To reject, or decline to consider, any Response or all Responses; to cancel the RFI at any time; to elect not to proceed with further discussions with a Respondent or with any Respondent; or to reissue the RFI, or to issue a new RFI (with the same, similar or different terms);

b. To waive, for any Response, any defect, deficiency, or failure to comply with the RFI

(collectively, “Defect”) if, in the City’s sole judgment, the defect is not material to the

Response;

c. To extend the Submission Date/Time and/or to supplement, amend, substitute or otherwise modify the RFI at any time prior to the Submission Date/Time, by posting notice thereof on the City web page(s) where the RFI is posted;

d. To require, permit or reject amendments (including, without limitation, submitting information omitted), modifications, clarifying information, and/or corrections to

Responses by some or all Respondents at any time before or after the Submission

Date/Time;

e. To require, request or permit, in discussions with any Respondent, any information relating to the S.M.A.R.T. Contracts Initiative that the City deems appropriate, whether or not it was included, described, identified, or otherwise reflected in the Response;

f. At any time determined by the City, to discontinue S.M.A.R.T. Contracts Initiative with any Respondent or all Respondents, and/or initiate S.M.A.R.T. Contracts Initiative with any other Respondent or with vendors that did not respond to the RFI; and,

g. To do any of the foregoing without notice to Respondents or others, except such notice as the City, in its sole and absolute discretion, elects to post on the City web page(s) where this RFI is posted.

This RFI, and the process described are proprietary to the City, are for exclusive benefit of the City. Upon submission, Responses to this RFI shall become the property of the City, which shall have unrestricted use thereof. Responses may be subject to public disclosure under the Pennsylvania Right-to-Know Law. However, a “record that constitutes or reveals a trade secret or confidential proprietary information” is exempt from access by a requester under that law. Ultimate determination of the application of that exemption cannot be assured, but Respondents are advised to mark clearly any portion(s) of any submittal believed to qualify for that exemption. By submitting its Response, the Respondent agrees to these terms.

S.M.A.R.T. Contract Structure and Management Framework

EXHIBIT A: RFI RESPONSE TEMPLATE

1.0: Vendor Profile

1.1 Organization/Business Name

1.2 Primary Office/Business Location (Street Address, City, State, Zip)

1.3 Point of Contact Name and Title

1.4 Phone Number

1.5 Email

1.6 Web Address

1.7 Please provide a brief description of your organization

2.0: Structuring the S.M.A.R.T. Contracts Initiative

The City is seeking feedback on how contracts can be structured under the S.M.A.R.T.

Contracts Initiative to create realistic pathways for small and local firms to successfully compete for and perform work as prime contractors. Based on the proposed framework and management structure outlined in Section 5 of this RFI, please provide your insight on the following:

2.1 - What characteristics make a contract opportunity appropriately designed for small and local firms working as prime contractors?

Please consider characteristics such as contract value, project duration, technical complexity, bonding requirements, staffing needs, geographic distribution of work, community coordination, projects that require work across trades/disciplines, and cash flow requirements.

2.2 - Please provide input/recommendations on how the City could best structure procurements under the S.M.A.R.T. Contracts Initiative to support participation by small and local businesses while ensuring fair competition and compliance with applicable laws and regulations.

2.3 - Are there specific procurement, compliance, permitting, or contract administration requirements/supports the City should consider to make S.M.A.R.T.

Contracts more accessible to small and local firms?

2.4 - What types of public works projects do you think would be a good fit for the S.M.A.R.T. Contract structure? What type of project would not be a good fit and/or may create challenges or reduce efficiency?

2.5 - Of the public works projects identified in your answer to question 2.4, please specify which you believe are best suited for Community Level Contracting versus Best Value Procurement versus Prequalification, using the definitions provided above (pages 5 and 6).

2.6 - Have you participated in programs with, or are you aware of any municipalities or public agencies, where they have implemented contracting approaches similar to the S.M.A.R.T. Contracts framework? Please describe any relevant models, including key design features and implementation outcomes.

3.0: Contract Management

The City is considering whether a construction management consultant could support portfolio-level coordination, administration, and monitoring of the

S.M.A.R.T. Contracts Initiative, while preserving the City’s direct contractual relationships with small and local firms serving as prime contractors. Based on this anticipated structure, please provide your insight on the following questions:

3.1 - What are the advantages of using a third-party construction management consultant to support administration of contracts?

3.2 - What are the disadvantages and/or risks of using a third-party construction management consultant to support administration of contracts?

3.3 - If a third-party is used to support contract administration, what responsibilities should remain with City staff, and which would you recommend be delegated to the third-party consultant? Please consider areas such as project coordination, inspections, compliance monitoring, invoice review, scheduling, reporting, vendor support, and performance management.

3.4 - What contract management practices, systems, or workflows are most important for successfully administering a portfolio of right-sized contracts across multiple vendors and projects?

3.5 - Are you aware of other municipalities or public/quasi-public agencies, that have used third-party construction management consultants to manage a portfolio of contracts? If so, how were those roles defined and structured?

3.6 - How do you anticipate the S.M.A.R.T. Contracts Initiative would impact the overall prime contracting landscape?

3.7 - Do you anticipate that this initiative might have any unintended consequences on prime contractors and/or subcontractors? If so, how would you recommend we design this program to mitigate those risks?

4.0: Enabling Small and Local Firms to Serve as Prime Contractors

A core objective of the S.M.A.R.T. Contracts Initiative is to expand access to City contracting opportunities by enabling small and local firms to successfully compete as prime contractors. The City seeks to understand what is realistically required to support this transition. Please provide input on the following questions:

4.1 - What are some of the experiences of small and local businesses when doing work for public agencies versus private companies/institutions?

4.2 - What level and type of support should be provided to firms participating in the

S.M.A.R.T. Contracts Initiative by the Project Owner (City) and/or the Owner’s

Representative (construction management consultant)?

4.3 - What type of supports do other municipalities inside and outside

Pennsylvania provide to small and local businesses that enable them to serve as prime contractors (e.g. bonding, insurance, etc.).

5.0: Recommendations to Strengthen the S.M.A.R.T Contracts Framework

5.1 - Are there any other recommendations you’d make to inform the development of a potential S.M.A.R.T. Contracts Initiative?