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New York City spent record $6B with 1,903 MWBE firms in fiscal 2023

New York City spent a record $6 billion with city certified minority- and women-owned business enterprises in fiscal 2023, Mayor Eric Adams said Monday.

City agencies and affiliated entities contracted with a record-setting 1,903 certified vendor firms through OneNYC in the last fiscal year.

“We’re delivering on our commitment to create an equitable business environment for all New York companies,” said New York City Mayor Eric Adams.

Mayoral Photography Office/Ed Reed

The number includes more than $1.4 billion in contracts awarded under the Local Law 1 program and set a record for MWBE contracts since the program’s creation in 2013. It also tied the city’s highest-ever MWBE utilization rate of 28% for a fiscal year.

“We promised to place equity at the center of our administration, and our record-breaking investments in minority- and women-owned businesses are proof that we’re keeping that promise,” Adams said at the opening of the 15th annual citywide procurement fair in Brooklyn.

“That puts us well on our way to hitting our ambitious goal of $25 billion awarded to MWBEs by 2026,” Adams said. “Through these historic investments, we are giving underrepresented groups a chance at succeeding in the business world and creating a more equitable business landscape.”

Earlier this year, Adams implemented expanded discretionary authority under the non-competitive purchase method, which allowed additional contract awards to MWBEs. Under this method, the city awarded a record $175 million in contracts to MWBEs, a 60% increase over fiscal 2022.

“Our city’s MWBEs are critical to the growth, stability, and advancement of our communities,” said New York City Council Speaker Adrienne Adams. “It’s vital that we expand opportunities for their success, and I’m encouraged by the city’s increased spending and contracting with them.”

In August, the administration expanded the contract financing loan fund, a revolving low-interest loan fund for MWBEs, operated by the New York City Department of Small Business Services. It can be used by these firms to increase capacity, hiring, and capital improvements as they fulfill city contracts. The expansion will provide an additional $50 million in financing to MWBEs.

The administration also looked to create a more streamlined and accountable MWBE program.

Earlier this year, Adams signed Executive Order 34, which requires city agencies to have a senior staff member empowered to prioritize MWBE programs; standardizes data collection from city-affiliated entities to will help facilitate real-time MWBE performance outcome tracking; creates more contracting opportunities for MWBEs where practicable; and prioritizes MWBE vendor firms for the city’s emergency contract procurements.

The city comptroller’s office has said it is also committed to the success of MWBEs.  In 2019, the city’s Procurement Policy Board rules were amended to allow for direct purchases of goods, services and construction up to $500,000 from city-certified MWBEs.

“Through these historic investments, we are giving underrepresented groups a chance at succeeding in the business world and creating a more equitable business landscape,” Adams said.

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