Mayor Modernizes NYC School Procurement, Saves $100M

New York City

Mayor Zohran Kwame Mamdani and Chancellor Kamar H. Samuels today announced a sweeping overhaul of the New York City Public Schools (NYCPS) procurement system, bringing long-overdue reforms to the nation's largest school district.

"In the past 20 years, we've gone from dial-up to broadband, made revolutionary advances in renewable energy and put computers in nearly every pocket. And yet the largest school system in the nation is still relying on a procurement system built for 2006. That ends now," said Mayor Mamdani. "We are bringing our schools procurement system into the 21st century, saving taxpayers more than $100 million and making sure our educators have what they need to give our kids the education they deserve."

"For too long, our procurement process has forced schools to navigate unnecessary red tape instead of focusing on what matters most: our students," said Schools Chancellor Samuels. "We are investing in our people, modernizing our systems and creating clear, transparent processes so that every dollar works harder for our classrooms. This is what an accountable school system looks like. and it's what our students and educators deserve."

The reforms will save the City more than $100 million over the current fiscal year and the next by eliminating unnecessary contracts, rebidding where appropriate and strengthening active contract management. They will also modernize outdated technology, provide comprehensive procurement training for staff and establish clear, transparent timelines for vendors.

The changes will ensure that students and educators get the resources they need, when they need them, while making sure every public dollar is spent responsibly.

First introduced by Chancellor Samuels at the start of the year, the newly created Division of Finance, Administration and Human Resources, led by Deputy Chancellor Lindsey Oates, is consolidating this important work under one division to streamline oversight, strengthen accountability and improve operations.

The reforms address longstanding delays, red tape and bureaucracy in the NYCPS procurement and contracting system.

The reforms, many of which are already underway and others that will be implemented over the coming months, will:

  • Strengthen staff training: Ensure every NYCPS employee with the authority to procure or purchase goods and services receives comprehensive and consistent training on procurement rules and procedures.
  • Save more than $100 million: Identify savings opportunities through the elimination of unnecessary contracts, competitive rebidding and stronger active contract management.
  • Modernize outdated systems: Replace contract management software that has not been meaningfully updated in more than 20 years.
  • Establish clear timelines: Create more predictable procurement timelines so schools and vendors know what to expect and can plan accordingly.
  • Improve communication: Strengthen communications around procurement rules, requirements and questions to reduce confusion and prevent unnecessary delays
  • Strengthen accountability: Consolidate administrative and school procurement and purchasing oversight roles and responsibilities under the Division of Finance, Administration and Human Resources.

"I'm grateful that NYC Public Schools is taking concrete action to address the longstanding procurement challenges that have plagued our school system. This reform plan will give school leaders the support they need to make critical purchases, identify opportunities for savings, and hold bad actors accountable. I commend Chancellor Samuels and Deputy Chancellor Oates for their leadership in tackling these entrenched issues," said Contracts Committee Chair Council Member Lincoln Restler.

"NYC Public Schools' procurement system is complicated, slow, and difficult for schools and providers to navigate, and I commend the administration for making its reform a priority," said Council Member Gale A. Brewer. "Annual training for staff, dedicated procurement experts to work directly with schools, clearer guidance for vendors, and replacing outdated technology address problems we have heard about for years. I am also encouraged by the focus on stronger contract oversight and faster payments to providers. A more effective procurement system means schools can spend less time navigating administrative hurdles and keep the focus where it belongs: on our students."

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