Garner says payments are a better barometer than contract awards
Garner explains that a $10 million contract awarded five years ago may only be 50% actualized, so payments better measure success. Restler notes payments are often less than awards and asks how this affects vendors working at risk.
The cadence of the reporting is as to white flint and kid almost in real time.
And this is going to be transformational because the city has historically evaluated their MWBE successes based upon contract awards.
The more important metric here is payments.
Right.
But payments are less than awards, right, often?
Well, once contract matures, the payments will, at some given point in time, they will catch up.
Hopefully.
Right, yes.
And so, for example, the estate has utilized this system for decades.
They capture awards, but they capture, more importantly, the payments on those awards.
So, for example.
If we report a $10 million contract that was awarded five years ago, not to exceed $10 million,
at the duration of that contract, after five years, if only...
50% of that contract has been actualized, you've overstated the success.
So converting from contract awards now to payments is a better barometer of success.