File #: Res 0281-2024    Version: * Name: Identify and implement measures to reduce disparities faced by businesses owned by women of color in obtaining and fulfilling public contracts.
Type: Resolution Status: Committee
Committee: Committee on Contracts
On agenda: 3/19/2024
Enactment date: Law number:
Title: Resolution calling on the Mayor's Office to identify and implement measures to reduce disparities faced by businesses owned by women of color in obtaining and fulfilling public contracts
Sponsors: Farah N. Louis, Mercedes Narcisse, Yusef Salaam, Chi A. Ossé, James F. Gennaro, Kamillah Hanks, Oswald Feliz, Althea V. Stevens, Selvena N. Brooks-Powers, Christopher Marte, Amanda Farías, Kevin C. Riley, Tiffany Cabán, Alexa Avilés
Council Member Sponsors: 14
Attachments: 1. Res. No. 281, 2. March 19, 2024 - Stated Meeting Agenda, 3. Hearing Transcript - Stated Meeting 3-19-24, 4. Minutes of the Stated Meeting - March 19, 2024

Res. No. 281

 

 

Resolution calling on the Mayor's Office to identify and implement measures to reduce disparities faced by businesses owned by women of color in obtaining and fulfilling public contracts

 

By Council Members Louis, Narcisse, Salaam, Ossé, Gennaro, Hanks, Feliz, Stevens, Brooks-Powers, Marte, Farías, Riley, Cabán and Avilés

 

Whereas, The New York City Comptroller's FY23 Annual Report on Minority and Women-Owned Business Enterprise (M/WBE) Procurement found ongoing, significant disparities in the share of city contracts and contract dollars awarded to M/WBEs, particularly those owned by women of color; and

Whereas, The report reveals a severe "disparity within the disparity," with businesses owned by women of color facing the most extreme underutilization in City contracting; and

Whereas, Only 1.03% of the value of contracts subject to M/WBE participation goals went to businesses owned by women of color, with over half going to Asian women-owned firms, highlighting the near total exclusion of Black and Hispanic women entrepreneurs; and

Whereas, Black women-owned businesses received only 0.39% of overall citywide contract value, Hispanic women-owned businesses 0.11%, and Asian women-owned businesses 0.53%; and

Whereas, Women-owned M/WBEs are drastically underrepresented compared to their male counterparts, with male-owned M/WBEs receiving nearly 8 times the number of contracts as women-owned M/WBEs; and

Whereas, In FY23, M/WBEs accounted for only 5.33% of the total value of all new City contracts and purchase orders, despite representing 18.39% of the total number of awards; and

Whereas, The average value of contracts awarded to M/WBEs was only 11% of the average value of contracts awarded to non-certified firms, indicating M/WBEs primarily receive lower-value contracts; and

Whereas, Only 20% of certified M/WBEs received a city contract in FY23, suggesting barriers preventing many certified firms, particularly those owned by women of color, from accessing contracting opportunities; and

Whereas, Over 61% of contracts with M/WBEs were registered retroactively after the contract start date, causing cash-flow challenges for M/WBEs, which disproportionately impacts smaller firms owned by women of color until they obtain payment from the City; and

Whereas, The City has a responsibility to ensure equitable access to economic opportunities and address historic disparities impacting women- and minority-owned businesses; now, therefore, be it

Resolved, That the Council of the City of New York calls upon the Mayor's Office to identify and implement measures to reduce disparities faced by businesses owned by women of color in obtaining and fulfilling public contracts.

Session 13

ARP

LS 15817

3/5/24