New York City's "MWBE" program, enacted by the City Council and signed by the Mayor as Local Law 129 of 2005, is designed to promote government contracting opportunities for businesses owned by minorities and women. Our "Emerging Business Enterprise" program, enacted by the City Council and signed by the Mayor as Local Law 12 of 2006, is designed to promote such opportunities for businesses owned by persons who are "socially and economically disadvantaged."1 Together, the programs establish the following Citywide goals for contracts and subcontracts in amounts under $1 million:

	Prime Contracts				Subcontracts
	Professional Services	Standard Services	Goods	Construction	Professional Services	Construction
Black American	9%	9.23%	7.47%	12.63%	9%	9%
Asian American	No goal	No goal	5.29%	No goal	No goal	9.47%
Hispanic American	5%	5.14%	4.99%	9.06%	5%	9.06%
Caucasian Female	16.5%	10.45%	17.87%	No goal	16.5%	No goal
Emerging Business	6%	6%	6%	6%	6%	6%

The goals are based on findings by consultants retained by the City Council who studied the capacity of firms owned by minorities and women, and the disparities between the availability of such firms and their utilization in City procurements. Goals were set for minority groups and women only where the study identified a statistically significant disparity. The study will be updated periodically, and goals will be adjusted based on the new findings. Firms owned by persons in groups for which MBE or WBE goals have not been established may be able to qualify for certification as "emerging business enterprises."

Each City agency, including the Law Department, will be striving to meet goals for its own procurements.2 The Law Department itself expects to spend more than $7 million in FY 07 for professional services contracts in amounts under $1 million, including contracts for outside legal services, expert witnesses, translation services, photography and information technology services; more than $3 million for standard services contracts in amounts under $1 million, including contracts for process servers, scanning and copying; and nearly $600,000 for contracts under $1 million for goods, including contracts for food, information technology supplies, office supplies and furniture, and copy equipment.

City agencies will be pursuing the goals by encouraging eligible firms to become "certified" as minority-owned, woman-owned, and emerging business enterprises. Certified firms will appear in an on-line directory maintained by the City's Department of Small Business Services. City agencies will be using this directory, and making other outreach efforts, to identify firms and encourage them to make bids and proposals for City business. Agencies will set participation goals for professional and construction contracts where it is expected that subcontracts for under $1 million will be awarded, and contractors will be required to make good faith efforts to meet the goals as a term of their contract.3 City agencies will be tracking and reporting our success in achieving goals to the Department of Small Business Services, the Mayor's Office of Contract Services, and the City Council. The reports will be available to the public.

For more information, please contact the Law Department's MWBE Officer, Martha Mann Alfaro, at 212-788-1084, or visit these Web sites:

Local Law 129 of 2005 (in PDF)
Local Law 12 of 2006

New York City Department of Small Business Services:
MWBE Page

1. The law provides that a person who is "socially and economically disadvantaged" is "a person who has experienced social disadvantage in American society as a result of causes not common to persons who are not socially disadvantaged, and whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged." The Commissioner of Small Business Services will promulgate regulations addressing how social and economic disadvantage may be demonstrated by applicants for the program. In drafting such regulations, the Commissioner is to consider criteria developed for federal programs established to promote opportunities for businesses owned by persons who are socially and economically disadvantaged, including criteria for determining eligibility in relation to the net worth of persons claiming to be economically disadvantaged. The net worth of a person claiming economic disadvantage must be less than one million dollars, excluding the ownership interest in the business enterprise and the equity in the person's primary personal residence.

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2. The laws provide for each agency to adopt an annual "agency utilization plan" setting forth its own goals for the coming fiscal year. Agency goals may differ from the Citywide goals. The Law Department has adopted the Citywide goals in its FY 07 plan.

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3. Bidders may seek a full or partial waiver of a goal before the contract is awarded. In determining whether to grant a waiver, the contracting agency will consider factors including: whether the bidder has the capacity and the bona fide intention to perform the contract without any subcontracting, or to perform the contract without awarding the amount of subcontracts anticipated by the contracting agency, whether the utilization plan is consistent with the bidder's past subcontracting practices, and whether the bidder has made good faith efforts to identify portions of the contract that it intends to subcontract. A contractor may seek a modification of a goal, but must establish that it has made all reasonable, good faith efforts to meet the goals set by the agency for the contract.

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