The City awards franchises and concessions in a manner similar to the
procurement process (e.g., by using RFP’s or competitive sealed bids), while
revocable consents are made through a permitting and petitioning process
initiated by the requesting entity.MOCS oversees and
certifies agency compliance with the applicable laws and regulations for
franchises, concessions, and revocable consents.Franchises
and concessions are also subject to the approval of the Franchise and Concession
Review Committee (FCRC) in certain circumstances.
Franchises are grants of the right to occupy or to use the City’s
inalienable property, such as streets or parks, for a public service,
e.g., transportation or
telecommunications.
Concessions are grants for the private use of city-owned
property such as for food sales or recreational activity, with the City’s
compensation typically tied to the concessionaire’s revenue.Concessions are also subject to FCRC’s rules.
The FCRC is comprised of six members: two represent the Mayor, one
represents the Law Department, one represents the Office of Management and
Budget (OMB), one represents the City Comptroller, and representatives of the
five Borough Presidents share one vote, which is allocated according to the
location of the franchise or concession at issue.
To award a franchise, the FCRC must conduct a
hearing and approve the franchise with at least five votes.Concessions, depending on their award method, may or may not require FCRC
approval.Those procured by competitive sealed bid never
require FCRC approval.
Public hearings are held for all “significant” concessions,
i.e., those awarded via a method other than competitive sealed bid that
either have a term of 10 years or more or will result in a projected
annual income to the City of more than $100,000.Concessions
awarded via negotiated concession require a preliminary approval by the City’s
Chief Procurement Office to utilize the negotiated concession method and one
subsequent FCRC approval of the concession agreement, with the support of at
least four votes. Concessions awarded via different procedures, i.e., sole
source or non-for-profit, require two FCRC approvals, each with the support of
at least four votes: first, a preliminary approval allowing the agency to enter
into negotiations, and then, once the concession agreement is finalized, a vote
to approve its grant.
Agency Annual Concession Plan The Concession Rules require City agencies to create annual concession plans (referred to as “Agency Annual Concession Plan”) describing proposed concession actions for the upcoming fiscal year. These plans include all concessions set to expire, anticipated new and continuing concessions, as well as concession renewals and/or extensions planned for each of the five Boroughs in the next fiscal year. The Mayor’s Office of Contract Services then works with these agencies to compile a comprehensive Agency Annual Concession Plan. Previous Agency Annual Concession Plans can be accessed by clicking on the links below: 2009 Agency Annual Concession Plan 2010 Agency Annual Concession Plan
Annual Concession Report of the City Chief Procurement Officer The Concession Rules require the City Chief Procurement Officer to produce an Annual Concession Report (“CCPO Annual Report”) summarizing the currently effective concessions awarded under Title 12 of the Rules of the City of New York. The summary includes: the registration status of each concession; a brief description of each concession awarded; the method by which each concession was awarded; and the approximate gross revenues received by the City for each concession during the prior fiscal year. The CCPO Annual Report for Fiscal Year 2009 can be accessed by clicking on the link below: 2009 CCPO Annual Report