QUESTION
Council Member Rivera Inquires About MWBE Contract Thresholds and Increases
1:41:04
·
3 min
Council Member Carlina Rivera probes into the effects and outcomes of raising discretionary contract thresholds for Minority and Women-owned Business Enterprises (MWBEs) in New York City Agencies. This discussion elucidates on the transition from a $1,000,000 to a $1,500,000 threshold, examining the impact on MWBE contract allocations. The conversation highlights the challenges in tracking and improving MWBE participation in larger contracts and the efforts to optimize procurement processes for enhanced MWBE engagement.
Speaker 16
1:41:04
I know that when you raise the threshold for contracts that typically comes from the state, but I did have a question as to you raise the threshold the threshold was raised for New York City Agency's discretionary contracts to $1,000,000 within the last 2 years.
1:41:21
But then fur it was further raised late last year to 1,500,000.
1:41:26
How many $1,500,000 contracts WENT TO MWE'S BEFORE THE THreshold WAS FURTHER RAISED.
Speaker 6
1:41:35
Rosemary: SO, Kosta, Maruhara, I WOULD say that we saw a record year in fiscal 23, $177,000,000 worth of contracts that went through AM 72.
1:41:45
So that would have been before the 1.5 during that 1,000,000.
1:41:49
In terms of the breakdown specifically, we're certainly seeing a lag.
1:41:52
The majority of the contracts are going to be in the 500, and every time we do increase it, what was we were discussing earlier?
1:41:58
It was only 3 years ago that it was a 150,000, which is really I mean, compared that to 1,500,000.
1:42:04
So we are certainly seeing there's always going to be a lag in terms of registered contracts versus solicitations, take some time.
1:42:10
So we it's something that we're very it in.
1:42:12
I'd be happy to share with you detailed breakdown of what happened before then, but it's certainly a key goal every time we raise that increase, we need to be pushing agencies to really, really capture it.
1:42:23
It's something that we talk about all the time and something that we encourage our agencies to do.
1:42:27
So definitely lags, if I think, for under standable reasons.
1:42:31
But that's the key point as chief Garner and and and and our agencies have have discussed.
1:42:35
Getting those higher dollar prime contracts is crucial and huge.
1:42:39
And so being able to go up to 1.5, we're gonna fight for every ounce of authority we can get, and then we're gonna push our agencies to use every ounce of authority they could get.
Speaker 13
1:42:49
Hey, Council member.
1:42:50
Good CEO.
1:42:50
If I may, from the DOT perspective, I think Charles is absolutely right.
1:42:54
We actually every time the numbers increases, that just means we have larger contracts think about.
1:42:59
So let me give you 2 examples.
1:43:01
The Council passed bill that requires DOT to create a buyback program from ebikes.
1:43:07
So the bill passed right around the when the threshold was gonna be increased.
1:43:14
Our original program was gonna be a $1,000,000 because we to use an MWDB vendor.
1:43:18
When the governor signed the increase to $1,500,000, so then we just up that number to 1.5.
1:43:24
And it's not just increasing our MWD utilization.
1:43:27
It's actually a faster procurement too.
1:43:29
So it's sort of a win win for for agencies.
1:43:32
And we do that too with some of our purchasing for for laptops, for example, or computers.
1:43:36
We we usually max out the threshold of whatever the limit is because it's fast sir, and it it also accomplishes our MWD Eagles.
Speaker 16
1:43:45
So just I just wanted to ask the breakdown.
1:43:47
You're gonna get our our actual numbers.
1:43:49
Because I realized lags is you're trying to keep up and you're trying to increase the number and we appreciate those efforts.
1:43:56
We're just curious as to where the numbers stand right now.
Speaker 6
1:43:59
Yeah.
1:43:59
I can certainly follow-up if you want a you want a a specific breakdown of brackets within that method before it went to one point Is that correct council member?
1:44:07
Mhmm.
1:44:07
Certainly.
1:44:08
I I I I can get that for you.
1:44:10
It should be publicly available, but I'll have it be collated and hopefully get an answer for you as soon as I can.
Speaker 16
1:44:14
Okay.
1:44:14
Thank you.
1:44:15
You, madam chairs.
Speaker 1
1:44:18
Thank you, adding on to council member Rivera.