Good morning, Chairperson Nadeau and the Committee on Public Works and Operations. I am Nancy Hapeman, Chief Procurement Officer of the District of Columbia. Thank you for the opportunity to discuss the Office of Contracting and Procurement’s (OCP) Fiscal Year (FY) 2026 budget. 

Mayor Bowser’s proposed FY26 Grow DC Budget reflects the core values and principles driving our work at OCP. Despite ongoing challenges to the District’s fiscal landscape, OCP remains committed to its mission to procure high-quality goods and services for the 79 District agencies OCP supports.

The Mayor’s proposed FY26 Grow DC budget helps bolster the growth and maintenance of key programs and core services which are essential to the District’s infrastructure, including the DC Supply Schedule and the P-card program. OCP’s proposed FY26 budget is $29.5 million, a net decrease of $754,000, or a 2.5% decrease from the FY25 approved budget. 

In FY26, OCP will undertake a bold transformation of our procurement ecosystem—blending strategic technology investments with process enhancements that deliver efficient and more transparent results for both our client agency and our vendor communities. Thanks to the Mayor’s Grow DC budget, we will resume the Procurement Automated Support System (PASS) Modernization Project in close collaboration with the Executive Office of the Mayor and the Assistant City Administrator. We have engaged a leading technology solutions research consultant to aid us in evaluating solutions that will best meet the District’s unique needs. We expect to receive their recommendations by the end of June and to select the optimal system or combination of system modules by the end of FY25. In FY26, we will launch the first phase, focused on implementing sourcing functions. 

Concurrently, we will begin transforming the DC Supply Schedule by evolving it into a fully featured Certified Business Enterprise (CBE) Marketplace. This dynamic online portal will empower client agencies to execute routine and small-dollar acquisitions directly and leverage agency purchase cards for faster fulfillment. By automating these transactions through intuitive supplier profiles, robust search filters, and built-in payment functionality, we will reduce turnaround times, elevate user satisfaction, and free up OCP staff to concentrate on high-impact work. This self-service model not only accelerates agency access to goods and services but also optimizes our workforce by reducing the need for dedicated manual support, allowing us to reallocate talent where it delivers the greatest value. 

We recognize a seamless vendor experience is a driving factor for attracting businesses to do business with District Government, so we have partnered with the Office of the Chief Financial Officer to unify disparate systems into a single, seamless portal. By integrating the District Integrated Financial System (DIFS) with PASS and consolidating separate registration, invoicing, and solicitation interfaces, we will eliminate redundant logins, automate real-time status notifications, and simplify the procurement journey. This one-stop portal will not only reduce friction for businesses of all sizes but also enhance transparency and accountability, making the District a more attractive business partner. 

Together, these initiatives will position OCP to deliver procurement services that are faster and more transparent than ever before. As we embark on this transformative journey in FY26 and beyond, we remain committed to fostering innovation, operational excellence, and sustained community impact across the District. These initiatives will allow OCP to truly embody and support Mayor Bowser’s Grow DC vision. 

In closing, I want to emphasize that the investments and initiatives outlined in our FY26 budget are critical to achieving our mission of procuring quality goods and services through a streamlined procurement process that is transparent, responsive, and accountable. We are committed to working with the Mayor, the Council, our agency partners, and our staff to build a best-in-class procurement system that supports the District's goals and priorities. 
The Mayor's FY26 budget reflects the difficult choices we must make in the face of unprecedented challenges. It is a budget that prioritizes our shared DC values, maintains core services, and makes strategic investments in our collective future. At OCP, we are proud to do our part in supporting these priorities. 

I am happy to answer any questions you may have.