NYC is ahead of schedule to award $25B in contracts to M/WBE, says Small Business Services

by PDM STAFF

Photo by Beth Macdonald on Unsplash

NEW YORK – New York City has surpassed its 10-year OneNYC goal to award $25 billion in contracts to minority- and women-owned business enterprises (M/WBE) by Fiscal Year (FY) 2025 — three years ahead of schedule.

“Economic inequality isn’t going to solve itself, and as mayor, I am committed to expanding opportunities by building economic on-ramps for our minority- and women-owned business owners,” said Mayor Eric Adams. “We are creating jobs and improving the way government provides services to New Yorkers, and I am thrilled that we have achieved the City’s 10-year goal of awarding $25 billion in contracts to M/WBEs three years ahead of schedule. These billions of dollars will build equity, boost recovery, and create opportunity for M/WBEs. This is how we ‘Get Stuff Done’ and fight inequality right here in our own City.”

This year is the 30th anniversary of New York City’s M/WBE program, an initiative created under Mayor David Dinkins, the City’s first Black mayor, in 1992. The program was created to address the disparity between city contracts awarded to certain ethnic and gender groups compared to their availability in the relevant marketplace. The City believes that contractors should reflect the diversity of New York City and that diversity provides opportunities for all of our communities, helps spark innovation, strengthens engagement, and drives continuous improvement.

In total, city agencies and authorities awarded more than $6 billion to M/WBEs in FY22 — an increase of approximately 50 percent compared to FY21. It marked an increase of 18 percent compared to FY21. It included approximately $1.4 billion in FY22 contract awards under Local Law 1, which governs the City’s M/WBE program.

Meanwhile, the City continues to surpass its annual goals to certify and recertify M/WBEs, reaching 10,768 certified firms at the close of FY22. Furthermore, 1,605 individual M/WBE firms were awarded a contract in FY22, up from 1,416 in FY21 — a 13 percent increase.

“In meeting the city’s goal of $25 billion in contracts to minority and women-owned business enterprises three years ahead of schedule, New York City has demonstrated its commitment to tackling income inequality and promoting fairness in economic opportunity, and we know we have to go even further,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer.

An annual procurement fair is held to connect potential buyers and useful services with the appropriate agencies to demonstrate its commitment to using its enormous purchasing power in support of M/WBEs. Today, Sept. 22, the Barclays Center hosted the event. More than 1,500 city-certified minority- and women-owned businesses and over 80 city and state agencies, public authorities, and prime vendors were expected to attend.

“In meeting the city’s goal of $25 billion in contracts to minority and women-owned business enterprises three years ahead of schedule, New York City has demonstrated its commitment to tackling income inequality and promoting fairness in economic opportunity and we know we have to go even further,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer.

Small Business Services (SBS) Commissioner Kevin D. Kim echoed Torres-Springer’s comment and added that the procurement fair is the perfect opportunity for entrepreneurs certified as M/WBE to come and tap into their contracting opportunities. “With dozens of city agencies and hundreds of businesses ready to work, this fair will result in millions of dollars in contracts for minority and women-owned businesses. SBS is proud to put this event together and excited to be at the Barclays Center with Mayor Adams.”

According to city officials, the City is set to have an even more impressive year in FY23, with a handful of major legislative reforms and new programs introduced over the last year:

  • The new M/WBE-only pre-qualified list (PQL) at New York City’s Department of Design and Construction.
  • Expanded curricula and access to a larger city pipeline for ConstructNYC — a training and technical assistance program that readies small-to-midsized M/WBEs in the construction trades to bid on city capital projects.
  • SBS has established a M/WBE Mentors program, the first peer mentorship program for New York City’s M/WBEs.
  • Significant reforms to PASSport to increase transparency, better track M/WBE spending, and increase compliance with M/WBE subcontracting requirements.
  • The New York City Economic Development Corporation, the New York City Department of Housing Preservation and Development, the New York City Police Department, and the New York City Housing Authority have developed M/WBE-prioritized PQLs to provide more opportunities to M/WBEs that can deliver the goods and services the city needs.
  • New York State Bill A10459/S09351 passed in Albany to raise the M/WBE discretionary cap from $500,000 to 1,000,000. The City has made significant progress leveraging this contracting method, with total award values rising from $12 million in FY18 to $109 million in FY22. The passage of the recent legislation — which is expected to be signed by Governor Hochul — will be implemented within the City, further increasing the value of awards to M/WBEs even more rapidly in the coming years.

–With Ricky Rillera/PDM

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