San Francisco committee advances OpenGov permitting contract without recommendation
Money Moves San Francisco, CA localFive-year, $33 million PermitSF extension heads to full board amid procurement and conflict-of-interest questions
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Overview
Updated 53 minutes agoSan Francisco's permitting overhaul cleared a key vote this week, but the panel behind it declined to recommend the deal. The Budget and Finance Committee voted 3-0 to advance OpenGov's five-year, $33 million contract extension to the full Board of Supervisors.
The split decision reflects deep unease over how Mayor Daniel Lurie's administration chose OpenGov in the first place. The city skipped competitive bidding, staff scored a cheaper competitor higher, and the new inspector general is probing whether the software can prevent permitting fraud.
Why it matters
San Francisco may lock in $33 million for a permitting system that missed deadlines, while the city's new watchdog probes the deal.
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People Involved
Organizations Involved
Software vendor for PermitSF, awarded a no-bid $5.9 million contract in 2025 and now seeking a $33 million extension.
Competing permitting software vendor whose bid was a fraction of OpenGov's cost and scored higher with city staff.
Anti-poverty nonprofit founded by Mayor Daniel Lurie; OpenGov executives have financial ties to it.
Timeline
October 2025 October 2026
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Inspector general expected to release findings
Upcoming ReportFraud watchdog to detail whether OpenGov can ensure integrity in the permitting process.
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Current OpenGov contract expires
Upcoming MilestoneDeadline for full board to act or the city loses its vendor continuity.
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Committee advances $33M extension without recommendation
Latest VoteBudget and Finance Committee votes 3-0 to send the OpenGov deal to the full board, declining endorsement.
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Inspector general opens OpenGov probe
InvestigationNew watchdog position examines whether the software can protect permitting integrity and prevent fraud.
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Budget analyst report criticizes procurement
ReportFred Brousseau finds selection fell short of best practices but did not violate rules.
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First PermitSF phase launches with limited records
LaunchPortal goes live covering a limited number of permit records, far below planned scope.
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Lurie awards OpenGov $5.9M no-bid contract
Contract AwardMayor's office bypasses competitive bidding, citing urgency to modernize permitting.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
New York City's CityTime scandal (2001-2012)
New York City's payroll modernization project CityTime started at a projected cost of $63 million and ballooned past $700 million. Prosecutors later uncovered an $80 million fraud and kickback scheme among the contractors.
Federal prosecutors charged 11 people in the scheme, and the city tightened its rules on large procurements.
CityTime remains a textbook example of how a well-intentioned government tech project can become a corruption vehicle.
San Francisco's inspector general is opening the same kind of inquiry into OpenGov, examining whether the new permitting system can prevent improper activities—echoing the concerns that haunted CityTime.
Healthcare.gov launch (2013)
The federal health insurance exchange went live October 1, 2013 and crashed almost immediately, with most users unable to create accounts. The disastrous launch required months of emergency repairs.
A 'tech surge' of private contractors fixed the site enough to function by March 2014, at a total cost above $2 billion.
It became the standard reference point for large government software failures, and proof that salvage is possible with enough money and expertise.
OpenGov's PermitSF is smaller in scale but has followed a similar arc: high-profile launch, missed deadlines, limited functionality, and heavy public criticism. The open question is whether the fix comes before the money runs out.
Cover Oregon (2013-2014)
Oregon's state health insurance exchange, built by Oracle, never functioned properly. The state paid over $300 million before abandoning the system and using the federal exchange instead.
Oregon rejected Oracle's system and launched an independent review of the project's failures.
The exchange became a cautionary tale of sunk costs: paying a large vendor for software that simply doesn't work.
San Francisco's one-year termination clause is essentially a Cover Oregon escape hatch. If OpenGov keeps missing deadlines, the city's exit option is the realistic worst case.
