Procurement is the process the City uses to purchase construction services, goods, human services, professional services, and standardized services. In order to procure these necessary goods and services, City agencies take the following steps:

• A need is identified.
• A solicitation is written and published.
• A competition is held.
• A vendor is selected and a determination is made concerning its responsibility.
• A contract is negotiated and signed.
• The contract is registered by the Office of the Comptroller.

In each New York City agency, staff members identify needs that support the agency's mission. Each agency has an Agency Chief Contracting Officer (ACCO) to ensure that the rules set by the Procurement Policy Board (PPB) are followed during the procurement process.

The City defines the procurement process, through the PPB, to guarantee that public funds are spent to obtain high-quality goods and services at a fair and reasonable price. Contracts are awarded only to responsible vendors that demonstrate business integrity, financial capacity, and the ability to fulfill the requirements of the contract. The City Chief Procurement Officer (CCPO), who is also the Director of the Mayor's Office of Contract Services (MOCS), has oversight of this process and enforces the Procurement Policy Board Rules on behalf of the Mayor.

Vendors are required to submit VENDEX Questionnaires with detailed information on their finances, corporate structure, and principals. VENDEX is a public database that City agencies are required to review before making responsibility determinations. MOCS processes VENDEX Questionnaires centrally and maintains a Public Access Center.

MOCS must review and approve certain procurement documents and issue a Certificate of Procedural Requisites, as required by the PPB Rules and the New York City Charter, in order for a contract to be registered by the Comptroller. Other offices that approve procurement documents that meet specific thresholds as defined in the PPB Rules include the Office of Management and Budget, the Law Department, the Division of Labor Services at the Department of Small Business Services, and the Office of the Deputy Mayor for Operations.

The New York City Charter defines the preferred procurement method as a competitive process, either a Competitive Sealed Bid or a Competitive Sealed Proposal. Any procurement using a non-competitive method must be approved by MOCS. In addition, the PPB requires that awards resulting from a Request for Proposals (RFP) must be approved by MOCS. Alternative methods include Demonstration Methods, Innovative Methods, Negotiated Acquisitions, Accelerated Procurements, Emergency Procurements, Intergovernmental Purchases, Required Authorized Source, Authorized Source, Preferred Source, and Sole Source. Other procurement actions include Renewals, Amendment Extensions, Change Orders, Small Purchases, Micro Purchases, and Line Item Appropriations.

Agencies are required to evaluate contractor performance and submit the evaluation to VENDEX on an annual basis. A vendor's performance is critical to an agency's determination to award, renew, extend, or terminate a contract. An overall unsatisfactory evaluation is the only condition that requires an ACCO to determine the vendor non-responsible.