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Mayor de Blasio asks Albany to raise cap on city's MWBE contracts
Published on 06/06/2017

New York City Mayor Bill de Blasio is asking state legislators to permit the city to award contracts valued at under $200,000 to Minority- and Women-Owned Business Enterprises (MWBEs) without a formal competitive process.

Currently, the city can only award informal contracts of up to $20,000 when purchasing goods and up to $35,000 when hiring services.

The change would almost triple the dollar value of contracts going to MWBEs from $109 million to $294 million annually.

The push for the change is part of the de Blasio administration’s effort to award 30 percent of city contracts to MWBEs. According to the mayor's office, the formal competitive process can be prohibitively expensive and time-consuming for small MWBEs.

The share of city contracts going to MWBEs has ticked up in recent years. They were awarded 8 percent of contracts in Fiscal Year 2015, 14 percent in Fiscal Year 2016, and 18 percent in Fiscal Year 2017 thus far.

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