NYC Council approves bill increasing M/WBE access to contracts
Published on 12/27/2012
Before the Christmas holiday the New York City Council passed a measure intended to help minority and women-owned businesses receive a larger share of the city's contract dollars.
The bill, which revises Local Law 129, removes the $1 million cap that limited the number of contracts available to the city's certified M/WBE firms and strengthens enforcement mechanisms to ensure the city is meeting its M/WBE participation goals.
Not everyone the measure is supposed to help is happy about the revisions, however. According to a report published by the Village Voice, some members of the Hispanic business community are upset that the bill lowers annual procurement goals for Hispanic-owned construction businesses from 9 percent to 4 percent. The measure decreases procurement goals for African-American construction firms as well, from 13 percent to 8 percent.
Professional-service goals for African-American and Hispanic-American companies, though, were increased by three percent.
Despite the criticisms, Mayor Michael Bloomberg appears intent on signing the bill into law.
"Small businesses are an essential part of our economy and the City is always working to expand opportunities for them to open, grow and succeed. Today's vote to strengthen the Minority and Women-Owned Business Enterprise Program will help meet that goal by eliminating barriers so that more businesses can participate in City contracts," said Mayor Bloomberg. "These measures are an important part of diversifying our economy, and I applaud Council Speaker Quinn and her colleagues for their work to pass this legislation."
According to a recent report from the City Comptroller, only 3.1 percent of eligible city contracts went to M/WBE businesses in 2012.
