Citywide M/WBE Goals
Proposed Rules: Closed to Comments
Statement of Basis and Purpose
The Commissioner of the New York City Department of Small Business Services (“DSBS”) intends to promulgate an amendment to Section 11-61 of Chapter 11 of Title 66 of the Rules of the City of New York pursuant to §1304 of the New York City Charter and § 6-129(d)(4) of the New York City Administrative Code. The City’s MWBE Program, originally enacted by Local Law 129 (2005), and codified in section 1304 of the New York City Charter and section 6-129 of the Administrative Code (Ad. Code), establishes goals for participation by minority-owned business enterprises (MBEs) and women-owned business enterprises (WBE’s) as contractors and subcontractors in the categories of construction, standard services, professional services and goods valued under $1 million.
Local Law 1 of 2013 amends these provisions by, among other things:
- changing the participation goals for each of the four procurement categories
- removing the million dollar cap on construction, professional services, and standard services procurements for which goals may be established, and
- lowering the cap from $1 million dollars to $100,000 for goods contracts for which goals may be established.
The proposed rule implements the above provisions of Local Law 1; other rules will be proposed to implement other changes made by Local Law 1.
The new goals were established based on a Disparity Data Analysis conducted by the Mayor’s Office of Contracts Services, and incorporated as Appendix A in the Committee Report of the City Council’s Government Affairs Division and Committee on Contracts, dated December 17, 2012 (Local Law 1 Committee Report). That analysis compared the availability of MBEs and WBEs in the four procurement categories to their utilization as contractors and subcontractors in City procurements.
This proposed rule amends all the goals in Section 11-61 of Chapter 11 of Title 66 of the Rules of the City of New York to match with the new goals established by Local Law (except for the goal enacted in error, as explained below, for WBEs in the professional services category).
When Local Law 1 was drafted, it was intended that for each category where a significant disparity between availability and utilization was identified in the Disparity Data Analysis, a goal would be set corresponding to the availability of MBEs or WBEs in the category. The goal identified by the Analysis for WBEs in the professional services category was 17%; however, due to a drafting error, the goal enacted in Local Law 1 was incorrectly listed as 37%.
To reflect the correct goal of 17% for WBEs in the professional services category, the Commissioner is exercising his authority under Ad. Code § 6-129(d)(4) periodically to review the availability and utilization rates for MBEs and WBEs and, where appropriate, to revise the Citywide participation goals set forth in that section. This is being done in consultation with the City’s Chief Procurement Officer, as required by §6-129(d)(4). The section also provides that results of the review and any proposed revision to the goals are to be submitted to the Speaker of the City Council at least 60 days prior to publishing a rule that would revise the goals. The results of the review have already been provided to the Council, and, as noted above, the Council has included them in the Local Law 1 Committee Report.