Bloomberg: NYC Aims to Double Contract Work for Women and Minority-Owned Businesses
June 07, 2023 Mayor Adams is taking a major step towards inclusive economic development by pledging to direct a cumulative $60 billion of contractual work to minority- and women-owned businesses( MWBEs) by 2030. New York City contracts and purchase orders have the ability to greatly enhance small business and local economies in the city. However, MWBEs in the city are typically overlooked for opportunities. Of the $44.6 billion of contracts and purchase orders awarded in fiscal year 2022, only $2.3 billion or 5%, was directed to certified MWBEs. The hope is that with a better focus on equitable distribution of opportunities, the Mayor’s administration can economically improve neighborhoods of color. Michael Garner, the city’s first chief business diversity officer will be overseeing the implementation of the initiative. An important measure he is establishing is a mentorship program.The program will help MWBEs navigate through bidding submissions and better compete for contracting business. Currently, the process is arduous and many smaller establishments are reluctant or unable to pay for outside professionals for assistance. Furthermore, the Adams administration will be lobbying the state legislature to allow New York City to increase the size of contracts that it’s allowed to assign without soliciting bids. Also, they are supporting a bill that would allow the city to use wrap-up insurance. This enables an owner to buy insurance on behalf of a contractor. The change would save small businesses substantial money. The mayor must give considerable attention to women of color in particular. They have struggled to gain traction with winning higher contact bids and totals. Nevertheless, the mayor’s initiative has the potential to build a more equitable city.