Don’t get left out of City projects!

This entry is part 12 of 15 in the series City Procurement

Why are MBE & WBE Utilization Rates important for you?

 

Let’s circle back to an article published earlier this year about 2021’s Making the Grade Report, which was published by NYC Comptroller, Brad Lander, on October 18, 2021. Results handed back a grade of C-, stating in its Executive Summary that “the City awarded $30.4 billion in contracts in FY 2021, of which only $1.166 billion (equal to 3.8 percent) were awarded to M/WBEs.”

 

That’s a decrease after two consecutive “C” in previous years, even though the City spent $1.27B with MBE and WBEs, “an additional $261 million from FY 2020 and an increase of more than $900 million since FY 2014.”

 

32 mayoral agencies were graded last year and these were the overall results:

 

 

 

 

 

 

Learn more about the report here!

 

Why is this relevant for your business?

 

NYC’s agencies “strive” to meet with the Local Law 1’s MBE & WBEs participation goals for each FY. In other words, to reach those numbers (utilization rates), they need your participation on projects that they are developing. 

 

City-certified MBEs & WBEs involvement is crucial for an agency to successfully comply with the Law, which was passed in 2013. The result should guarantee at least 30% (and sometimes 40%) of contracts awarded go to MBE & WBE contractors. The City’s MBE & WBE Program was developed and is being overseen by NYC’s Mayor’s Office of Contract Services (MOCS).

 

Read more about how the program began.

 

 

Do City Agencies need you to
reach FY 2022 Utilization plans?

 

Exactly. For this year and the years to follow until FY 2025 to achieve the goal set of awarding $25B in contracts to MBEs & WBEs. Until last year, the City has awarded City-certified M/WBEs approximately $21.4 Billion Dollars in City contracts.”

 

Through OneNYC M/WBE Bulletin tracks Citywide progress each year. For example, the following list has the total awards on M/WBE contracts between 2015-2021 in most of the City Agencies related to the Construction industry. These numbers may seem big, but remember this is over a 6-year period. In the same period, the City spent a total of $21.4 B

 

City Agencies:

  • Department of City Planning: $7,918,200
  • Department of Design and Construction: $3,565,552,000
  • Department of Buildings: $86,424,300
  • Department of Transportation: $519,538,400
  • Department of Parks and Recreation: $909,840,400
  • Department of Housing Preservation & Development: $137,621,000
  • Human Resource Administration: $477,339,000
  • Law Department: $43,175,300
  • Department of Small Business Services: $143,085,000

 

  • New York City Housing Authority: $3,257,473,900
  • School Construction Authority: $4,444,199,500

 

Click here to see the full list of total awards on M/WBE contracts per City Agency.

 

What could these numbers mean to you?

 

Contracting opportunities – with a budget of $3.6B to be awarded during these three years until 2025. You can win one – or more – of these by starting to engage with City agencies as a City-certified MBE & WBE.

 

The chances of you being contacted to bid and/or work on more projects increase with each successfully completed project. 

 

Create your PASSPort account first, though!

 

Are you prepared for these projects? Schedule a meeting with us to discuss how we can help you get ready to scale your business. 

 

Want to know more about Constructing a Business? Listen to our podcast! Available on Spotify and/or Anchor.

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