A recently released report by city Comptroller Brad Lander indicates that businesses owned by women and individuals from minority groups still command a disproportionately small portion of the expenditures allocated for city contracts.
In the fiscal year of 2023, only 5.3 percent of the city’s total annual contract spending, amounting to approximately $40 billion, was directed towards Minority- and Women-Owned Business Enterprises (M/WBEs).
M/WBEs Secure Less Than 10% of Contracts
In instances where procurement procedures were obligated to adhere to M/WBE participation targets, enterprises owned by women and individuals from minority communities secured contracts that accounted for less than 10 percent of the total contract expenditures.
While the report acknowledged an increase in the number of city contracts awarded to M/WBEs compared to previous fiscal periods, it underscored that the pervasive trend of historical discrimination persists.
In a statement, Comptroller Brad Lander emphasized the importance of Minority- and Women-Owned Business Enterprises (M/WBEs) receiving equitable opportunities in securing City contracts.
He expressed disappointment with this year’s figures, which he described as significantly below the desired level.
Lander acknowledged efforts undertaken by the Adams Administration to enhance equity in City contracting but stressed that the data indicates substantial progress is still needed.
He concluded by asserting that through enhanced management and coordination, it is possible to reverse the current unacceptable trends and advance towards fairness in City contracting.
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M/WBEs Dominate New Contracts, But Lag in Value
In cases where contracts were subject to participation objectives, M/WBEs constituted approximately 62 percent of new contract registrations and purchase orders.
However, their representation in terms of the total contract value was notably lower, accounting for only 9.8 percent.
Conversely, contracts of greater value were predominantly awarded to firms owned by white men, with an average value of $4.6 million per contract compared to $511,000 for M/WBEs in fiscal year 2023.
Furthermore, the report highlighted that only 20 percent of M/WBEs had contracts, purchase orders, or approved subcontracts registered by the city.
Additionally, more than half of the contracts awarded to these businesses were registered late, presenting a significant challenge, especially for smaller firms lacking adequate working capital to endure extended payment delays.
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