Res 0281-2024

Whereas, The New York City Comptroller's FY23 Annual Report on Minority and Women-Owned Business Enterprise (M/WBE) Procurement found ongoing, significant disparities in the share of city contracts and contract dollars awarded to M/WBEs, particularly those owned by women of color; and Whereas, The report reveals a severe "disparity within the disparity," with businesses owned by women of color facing the most extreme underutilization in City contracting; and Whereas, Only 1.03% of the value of contracts subject to M/WBE participation goals went to businesses owned by women of color, with over half going to Asian women-owned firms, highlighting the near total exclusion of Black and Hispanic women entrepreneurs; and Whereas, Black women-owned businesses received only 0.39% of overall citywide contract value, Hispanic women-owned businesses 0.11%, and Asian women-owned businesses 0.53%; and Whereas, Women-owned M/WBEs are drastically underrepresented compared to their male counterparts, with male-owned M/WBEs receiving nearly 8 times the number of contracts as women-owned M/WBEs; and Whereas, In FY23, M/WBEs accounted for only 5.33% of the total value of all new City contracts and purchase orders, despite representing 18.39% of the total number of awards; and Whereas, The average value of contracts awarded to M/WBEs was only 11% of the average value of contracts awarded to non-certified firms, indicating M/WBEs primarily receive lower-value contracts; and Whereas, Only 20% of certified M/WBEs received a city contract in FY23, suggesting barriers preventing many certified firms, particularly those owned by women of color, from accessing contracting opportunities; and Whereas, Over 61% of contracts with M/WBEs were registered retroactively after the contract start date, causing cash-flow challenges for M/WBEs, which disproportionately impacts smaller firms owned by women of color until they obtain payment from the City; and Whereas, The City has a responsibility to ensure equitable access to economic opportunities and address historic disparities impacting women- and minority-owned businesses; now, therefore, be it Resolved, That the Council of the City of New York calls upon the Mayor's Office to identify and implement measures to reduce disparities faced by businesses owned by women of color in obtaining and fulfilling public contracts. Session 13 ARP LS 15817 3/5/24