How did NYC end up with an overall grade of D+ for MBE & WBE engagement?

nyc, buildings, construction, contractors,
This entry is part 1 of 15 in the series City Procurement

“We owe our City’s richly diverse business community more than just lip service – we need to deliver real spending to these very real businesses, and give them the support they need to succeed, create jobs, and help our City’s economy grow”.

Those were the words said by former New York City Comptroller, Scott M. Stringer when the 2015 “Making the Grade” report observed that MWBEs were mostly held out from New York’s $13.8 billion annual procurement budget (only receiving $725 million).

What about results? How did we end up with an overall grade of D+?

5 years later, the report handed back a grade of C- after receiving two consecutive C grades in previous years, taking into account that New York has been emerging – or trying hard to do so – from the ongoing pandemic. City agencies spent $1.27 billion with M/WBES,  an increase of more than $900 million since FY 2014.

What about now? What is the outlook for MBEs and WBEs looking to do work with the city?

Let’s try to see the whole picture by taking a look at some of the departments’ spending:

 

nyc, buildings, road, people, construction

Finally, what happens with the Letter Grade Overview for each population group?

  • African Americans earned an F in every department except on SBS, where they received a grade of A.
  • Asian Americans received four As, one C, and two grades of D.
  • Hispanic Americans earned an F in four departments, except from two grades of C on DDC and DCP, and lastly one grade of D on DOB.
  • Women-owned businesses received an F in every department except for a grade of D on HRA.

 

It is crucial to highlight that these grades are given based on a direct relationship between each MWBE spending percentage versus their spending as a percentage of the target achieved from Local Law 174.

For FY 22 these outcomes can be traduced into an important keyword: opportunity. Give ourselves time to think, evaluate, analyze and strategize how to make the most of the resources available for us.

We are only a month into 2022, there is a long road ahead, with many opportunities to take advantage of.

Will you dare to join this journey with us to bring the best out of your business?

Ready to learn more about membership? Schedule a meeting here!

Series NavigationFoundation of NYC’s MBE & WBEs Program >>

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