Supervisors split over five‑year extension of homelessness contracting waiver; committee continues item

The Budget and Finance Committee on Feb. 7 spent the bulk of its meeting debating an ordinance that would extend through 2029 the city’s authority to enter into and amend certain contracts without competitive bidding for homelessness projects.

Emily Cohen, deputy director of the Department of Homelessness and Supportive Housing, said the streamlined procurement authority had been “instrumental” in allowing HSH to stand up shelter sites and expand services quickly, and credited the process with diversifying the provider pool and bringing culturally competent neighborhood organizations into contracts. “This authority really helps us bring in smaller or culturally competent organizations,” she said.

But several supervisors urged caution. Chair Chan and others referred to the United Council of Human Services contract problems and a civil grand jury report as evidence that waiving bidding requires tighter guardrails. "I'm not in a space where I will support a blanket waiver," Chair Chan said, arguing for tiered limits and annual reporting. Supervisor Melgar pressed for clearer metrics showing that the waiver had increased cultural competency among providers; Cohen said such data exist and offered to provide it to the committee.

Vice Chair Mandelmann and other supporters said existing procurement rules create delays that impede the city’s ability to open beds and services quickly. Mandelmann said streamlined authority allowed the city to avoid ‘molasses’ in procurement and get projects moving while still evaluating costs and performance.

Sheree McSpadden, HSH executive director, apologized for prior contracting failures the department inherited and said HSH is working to build multi‑year procurement plans and staff capacity. The department and the chair’s office remain at odds over whether to bifurcate contract timelines by original procurement method; HSH said bifurcation would complicate reprocurement. After extensive public comment and deliberation, Chair Chan moved to continue the item one week to give staff and supervisors time to reconcile outstanding issues; the motion passed by roll call.