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New York City Comptroller Mark Levine has released the Comptroller's annual review of City Minority and Women-owned Business Enterprise (M/WBE) Procurement for Fiscal Year 2025. The report makes a finding of underperformance in the City's attempts to remedy inequities in contracting for M/WBEs.
Specifically, the report finds that 5 percent of City spending during the period went to M/WBEs, representing some $2.4 billion in contract dollars. When the figure is restricted to contracts specifically subject to M/WBE participation goals, M/WBEs received only 8 percent of the total dollars spent (or $1.5 billion in spending going to M/WBEs). Additionally, only 22 percent (or 2,478) of the 11,382 City-certified M/WBEs entered into "a new contract, subcontract or purchase order under the City" during the period. Other problem areas noted by the report include persistent delays in the City registering contracts for M/WBEs, lower average values for M/WBE contracts than non-M/WBE contracts, and inadequate data and reporting.
Recommendations made by the report for addressing these disparities include simplifying the certification process for City M/WBEs, standardizing commodity codes across City departments, tightening accountability for City agencies to register contracts on time, adding functionality to PASSPort (the City's procurement portal) to better capture data, and reaching out to M/WBEs ahead of certification lapses to help them with the recertification process.
"We must make our procurement system agile, transparent, and equitable for all New Yorkers and for the minority owned businesses that serve them," said Levine in a press release announcing the delivery of the report.
Read the press release on the report from the Comptroller's office at https://comptroller.nyc.gov/newsroom/city-contracting-practices-leave-minority-and-women-owned-businesses-m-wbes-behind/.
Find the report at https://comptroller.nyc.gov/reports/annual-report-on-m-wbe-procurement-fy25/.