The controversial software system that Mayor Daniel Lurie championed to overhaul San Francisco\u2019s archaic permitting system, with little transparency and no formal bid, just got a contract extension.\u00a0<\/p>\n
But after major scrutiny over OpenGov\u2019s spotty performance, the Board of Supervisors dialed back a request by the mayor\u2019s allies for a $33 million extension through 2031. OpenGov will instead get a $22 million extension through 2029.<\/p>\n
This came after a 10-1 Tuesday vote by the Board of Supervisors, with Jackie Fielder the lone dissenter. A majority of supervisors, including those who criticized the deal for eroding public trust in City Hall, lauded the amended deal for keeping the city\u2019s leverage intact amid reports<\/a> about OpenGov\u2019s rocky rollout.\u00a0<\/p>\n \u201cI\u2019m grateful to the mayor\u2019s office for coming to the table and negotiating a new contract that we can all live with,\u201d said Supervisor Chyanne Chen, who proposed the amendments Tuesday, prior to the vote.<\/p>\n Chen, like other supervisors, said there\u2019s no question that a world-class, modernized permitting system is sorely needed in San Francisco.<\/a> But she and even some of the mayor\u2019s allies agreed that OpenGov\u2019s performance didn\u2019t justify a costly, $33 million ask by the mayor\u2019s office without clear plans beyond 2027.\u00a0<\/p>\n \u201cThis gives [the city] enough flexibility to continue the implementation of permits but gives the board stronger oversight and accountability tools,\u201d Chen said.<\/p>\n The total contract amount has thus been reduced from $38 million to $28 million. A new provision for the contract approved today, which was only proposed after the deal came under public scrutiny, gives supervisors the option to terminate the contract without needing to prove a breach or wrongdoing.<\/p>\n \u201cI\u2019m hopeful this is something we don\u2019t live to regret and can look back on, saying, \u2018Aren\u2019t we all glad we brought scrutiny to this?\u2019\u201d said Supervisor Matt Dorsey before the vote.\u00a0<\/p>\n Lurie hailed the deal in a Tuesday afternoon statement \u2014 albeit without acknowledging it had been reduced in scope in both time and money.\u00a0<\/p>\n \u201cEvery hour we save a small business owner is another hour they can spend serving San Franciscans, and every hour we save a homeowner is one they can spend with their family instead of at the Permit Center,\u201d Lurie said. \u201cIn the next phase of PermitSF, we will keep our foot on the accelerator so homes can break ground sooner, businesses can open their doors faster, and San Francisco\u2019s recovery can continue moving forward.\u201d<\/p>\n OpenGov was pitched as the only software capable of meeting aggressive deadlines to streamline city approvals for building projects. It was installed with no formal bidding process by the mayor\u2019s office in October, despite a competitor scoring higher in evaluations and over the objections of departmental staffers.\u00a0<\/p>\n The software has since missed key deadlines, and city workers say they\u2019re still using it simultaneously with the old permit tracking system due to ongoing bugs with OpenGov\u2019s handling of even basic permits.\u00a0<\/p>\n \u201cSan Francisco is our home, so this work is personal to us. PermitSF shows what\u2019s possible when committed public servants, the right technology, and a relentless focus on residents and businesses come together,\u201d OpenGov said in a statement after the vote. \u201cWe\u2019re proud to continue partnering with the City, making permitting faster, simpler and more transparent for everyone who lives and works here.\u201d<\/p>\n The decision to extend the contract came after multiple public hearings<\/a> in recent months showed disagreement at City Hall over OpenGov\u2019s performance.\u00a0<\/p>\n There have been questions about whether the procurement process was above-board, and whether the $33 million additional investment was sound amid mixed results<\/a> from OpenGov\u2019s first year.\u00a0<\/p>\n