Mayor Adams Celebrates Back to Back Record Breaking Years for Supporting Minority and Women Owned Businesses

November 15, 2024

Video available at: https://youtu.be/lZ9uT3HMqh4

City Awarded $6.4 Billion in Total M/WBE Contracts During Fiscal Year 2024

City Agencies Utilized M/WBEs at Highest Rate Ever Recorded in Fiscal Year 2024

Highest Total Contract Amount Awarded to M/WBEs in Program's History

Adams Administration Announces M/WBE Advisory Council of Prominent Business, Civic, and
Advocate Leaders to Continue Historic Progress with M/WBEs

Milestones Mark Progress Towards Administration's
Moonshot Goal of Awarding $25 Billion by Fiscal Year 2026

NEW YORK - New York City Mayor Eric Adams, Chief Business Diversity Officer Michael J. Garner, Mayor's Office of Contract Services (MOCS) Director Lisa Flores, and the New York City Department of Small Business Services (SBS) Commissioner Dynishal Gross celebrated a multi-agency effort to deliver back-to-back record-breaking years for spending on, and supporting, minority-and-women owned business enterprises (M/WBE). In Fiscal Year 2024 (FY24), the city awarded $6.4 billion in M/WBE contracts and continued to make meaningful progress towards Mayor Adams' OneNYC goal of awarding $25 billion in M/WBE city contracts by FY26. Under Local Law 1 (LL1), which governs the city's M/WBE program, the utilization rate was 31.2 percent - the highest ever in the program's history. The city also set a record-high in total contract value awarded to M/WBEs under LL1 at $1.59 billion, a 15 percent increase since FY22, the first fiscal year of the Adams administration. Further, in FY24, more M/WBEs than ever were awarded contracts under the city's M/WBE Small Purchase method, a streamlined process to engage directly with certified M/WBEs, representing an increase of 41 percent in contract value from the previous fiscal year.

Finally, Mayor Adams announced the M/WBE Advisory Council to advance the administration's historic progress on supporting M/WBEs. Chaired by Chief Business Diversity Officer Michael Garner, the council will be co-chaired by former New York City Comptroller William Thompson and New York Building Congress Chairperson Emeritus Elizabeth Velez. The full list of members can be found online.

"When we came into office two and a half years ago, we had a mission: make this a safer, more affordable city for working-class New Yorkers, and we continue to deliver on that vision by putting money back into communities that have been denied a fair shot for far too long," said Mayor Adams. "Today, we are proud to announce another record-breaking year for minority-and-women owned business enterprises in New York City with the city awarding $6.4 billion in M/WBE contracts for Fiscal Year 2024, and the creation of the M/WBE Advisory Council to help advance the administration's historic support of M/WBEs. This council will help us build on the progress we have already made and reach our moonshot goal of awarding $60 billion by Fiscal Year 2030 to ensure M/WBEs finally are able to open their small businesses, support their families, and truly get ahead."

"Since the beginning of this administration, we have used every tool at our disposal to ensure M/WBEs are getting their fair share of city dollars," said First Deputy Mayor Maria Torres-Springer. "We are proud to announce our Fiscal Year 2024 results: $6.4 billion in total M/WBE contracts and a record-breaking 31.2 percent M/WBE utilization rate, milestone achievements that mark our progress towards awarding $25 billion in contracts to M/WBEs by Fiscal Year 2026. Our new M/WBE Advisory Council, capturing diverse industries and a wealth of experience, will work hand-in-hand with us to ensure our continued progress towards these ambitious goals."

"Under the effective leadership of Mayor Adams and his 'Get Stuff Done' approach to addressing historic disparities in city contracting, the M/WBE program has made great strides in Fiscal Year 2024 despite challenging fiscal times," said Chief Business Diversity Officer Garner. "Through collective and focused efforts, which include key legislative victories, we've been able to put M/WBEs in the critical path of the city's procurement processes. The outcome is a record fiscal year for M/WBEs on multiple levels, including records set in the M/WBE utilization rate - 31.2 percent - and agency use of their discretionary authority via the M/WBE Small Purchase Method tool to award over $250 million in contracts to M/WBEs. I also recognize that these achievements would not have been possible without the tireless work and committed leadership of our citywide agencies' procurement staff and our excellent oversight partners, SBS and MOCS. With the announcement of our new M/WBE Advisory Council - a collection of accomplished public and private sector leaders, civil rights organizations, and business industry experts - I have no doubt that we will indeed meet the mayor's aggressive OneNYC goal of awarding $25 billion in M/WBE contracts by FY26. This achievement will lead to increased employment and homeownership opportunities for many New Yorkers."

"Today, we are excited to highlight the outcomes of this administration's investment in our minority and women-owned business community," said City Chief Procurement Officer and MOCS Director Flores. "Fiscal Year 2024 demonstrated that our steadfast commitment to enhancing New York City's M/WBE program has resulted in unprecedented success, including an M/WBE utilization rate exceeding 31 percent. This groundbreaking achievement was made possible through tireless advocacy for establishing fair procurement practices by agency leaders and professionals from across our city. Collaboration is essential and it is how progress happens. The M/WBE community has voiced its needs, and today, we are proud to share our plans to continue addressing those needs. The newly formed M/WBE Advisory Council has significant work ahead, and I am honored to partner with the council, Chief Business Diversity Officer Garner, and Small Business Services Commissioner Gross to create the equitable procurement system New York City deserves."

"SBS is proud of the contributions we've made to achieving the milestone of record M/WBE contributions to New York City's critical work," said SBS Commissioner Gross. "Through rigorous implementation of M/WBE certification and targeted programs ranging from the Contract Financing Loan Fund to M/WBE business education and technical assistance, SBS unlocks economic opportunity for M/WBEs that help our city 'Get Stuff Done.' I thank Mayor Adams, First Deputy Mayor Torres-Springer, and Chief Business Diversity Officer Garner for their devotion to making New York City's M/WBE program the gold standard in the fight against economic inequity and inequality."

"We are thrilled that Mayor Adams and our partner agencies are well on their way to achieving the OneNYC goal of awarding $25 billion in M/WBE city contracts by FY26," said New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball. "Supporting diverse entrepreneurs is a pillar of NYCEDC's work to create a more vibrant and equitable economy and we are thrilled to support Mayor Adams' leadership in uplifting M/WBE's across the five boroughs."

Today's announcement follows last year's record-breaking numbers for MWBEs. In FY23, the first full fiscal year of the Adams administration, the city set a new record for spending on city-certified M/WBEs by awarding over $1.4 billion in contracts to M/WBEs under the Local Law 1 program, awarded contracts to a record-setting 1,903 unique certified vendor firms, set a record in agency discretionary use of the Small Purchase Method, and tied a then-city record 28 percent M/WBE utilization rate.

The Adams administration has a proven track record on investing in the success and growth of M/WBEs. Mayor Adams appointed Michael Garner as the city's first-ever chief business diversity officer to address historic disparities in city contracting and provide minority and women entrepreneurs increased opportunities to do business with New York City. Additionally, Mayor Adams signed Executive Order 34, ensuring that each city agency has a senior staff member empowered to prioritize M/WBE programming; standardize data collection from city-affiliated entities that will help facilitate the city's full, real-time M/WBE performance outcome tracking; create more contracting opportunities for M/WBEs wherever practicable; and prioritize M/WBE vendor firms for the city's emergency contract procurements.

The Adams administration successfully advocated for the enhancement of a state law, sponsored by New York State Senator James Sanders and New York State Assemblymember Rodneyse Bichotte Hermelyn, and signed into law by New York Governor Kathy Hochul, to authorize agencies to award up to $1.5 million through the city's M/WBE Small Purchase method, tripling the previous discretionary limit of $500,000 inherited by the Adams administration. This enhancement has paved the way for M/WBEs to better compete for small purchase contracts, with more than 60 percent of the total contract value awarded to Asian women-owned or Black- and Hispanic-owned businesses, which have historically been the most underutilized categories of M/WBEs.

To provide equitable employment and business opportunities for marginalized communities, Mayor Adams announced the city's first-ever community hiring effort, which will leverage more than $1.2 billion in city contracts to create job opportunities for underserved New Yorkers. Community hiring allows the city to use its purchasing power, set hiring goals across city procurement contracts, and build on the success of existing project labor agreements and agency-specific hiring programs.

Under Mayor Adams' leadership, the unemployment rate for Black and Latino New Yorkers has decreased by roughly 20 percent since the start of the administration. Between January 1, 2022, and July 1, 2024, the Black and Latino unemployment rate decreased in the five boroughs.

"Minority and women-owned businesses are vital contributors to our city's success, and this milestone proves what we all know to be possible - that M/WBEs are capable, resilient, and ready to lead," said New York State Senator Leroy Comrie. "Awarding over $1.5 billion in contracts to M/WBEs demonstrates that when we prioritize equity, we empower businesses to grow, create jobs, and strengthen our communities. I commend Mayor Adams and his administration for this progress and for laying the groundwork to ensure even greater opportunities for M/WBEs in the future."

"As New York State Assembly Deputy Majority Whip, I am honored to congratulate Mayor Eric Adams, Chief Business Diversity Officer Michael Garner, MOCS Director Lisa Flores, and SBS Commissioner Dynishal Gross for their exceptional leadership and collaboration. Their multi-agency efforts have achieved unprecedented milestones in FY24, including a record 31.2 percent utilization rate and $1.59 billion in contracts awarded to minority- and women-owned business enterprises," said New York State Assemblymember Inez E. Dickens. "This historic progress underscores our commitment to empowering M/WBEs and fostering a more inclusive economic landscape in New York City. I look forward to the continued success of the new M/WBE Advisory Council under their guidance."

"In a city that is 52 percent women and 69 percent people of color, we have an imperative to bring everyone to the table and make sure they receive their fair share of economic opportunity. I was proud to work with Mayor Adams to pass legislation in Albany increasing New York City's threshold for discretionary M/WBE contracting to $1.5 million," said New York State Assemblymember Jenifer Rajkumar. "Today we see the incredible success of this work, having achieved a lofty 31.2 percent M/WBE utilization rate-a 15 percent increase since the mayor took office. To build upon this success, we are launching the M/WBE Advisory Council, which will create an even more favorable climate for these businesses. Together, we will put millions into the pockets of women and diverse communities, uplifting all people in our gorgeous mosaic."

"True community development revolves around creating upward mobility and pathways to prosperity for communities who have been historically marginalized or directly disinvested in. That's why centering minority- and women-owned businesses in major economic development projects, such as the $20 billion reimagining of Kennedy Airport, couldn't be more critical," said Queens Borough President Donovan Richards Jr. "I'm proud of the work we're doing in Queens to further empower our MWBEs and I'm grateful to the administration for its laser focus on ensuring these businesses have the opportunities they deserve to help build this city. This is how we create good-paying jobs for hard-working New Yorkers right in their own communities."

"Today, we celebrate a historic milestone for New York City's minority- and women-owned business enterprises," said New York City Councilmember Dr. Nantasha Williams. "The record 31.2 percent utilization rate and $1.59 billion in contracts awarded reflect the Adams administration's commitment to economic equity and creating opportunities for M/WBEs. The launch of the M/WBE Advisory Council is a critical step forward in ensuring these businesses continue to thrive and have the support they need to succeed."

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