New York City’s

Minority & Women-Owned

Business Enterprise Program
Fails to Meet Goals
Policy Brief

September 8, 2010

Councilmember Jumaane D. Williams

Councilmember Brad Lander

 EXECUTIVE SUMMARY
The City’s most recent report on its Minority and Women-Owned Business Program (for the July
to December 2009 period) shows that it has failed to meet most of its goals for contracts
awarded to Minority or Women-owned Business Enterprises (M/WBEs).

Contracts awarded to M/WBEs amounted to only 1.6% of the total value of all City contracts
awarded during this period.

Only one City agency met more than half of the targets set by Local Law 129 of 2005, and
most met less than one-quarter. Fifteen City agencies met 0% of their goals. Of the 368
contracting goals set across 35 agencies, the city only met 13% (49) of the targets.

Performance for African-American, Latino, and Women-owned businesses was very poor.
Only 11% of targets for African-American-owned and 14% of targets for Latino-owned
businesses were met. The performance for Caucasian Women-owned businesses was abysmal,
with only 7% of the goals met.

No agency met their construction targets, and performance was dismal for professional and
standardized services (e.g. contracts for security, janitorial, and transportation services), with
agencies meeting only 5% and 9% of their targets, respectively.

Mayoral oversight of the program is insufficient. The City’s progress report does not provide
sufficient explanation of the City’s failures, or any corrective action plans for improvement at
the agencies that entirely failed to meet their goals.

Recommendations
♦ Provide leadership at City Hall on encouraging diversity and minority & female
empowerment, by establishing a senior member of the Mayor’s team that is
responsible for this and other programs, and using this data to compel corrective action.

♦ Implement real consequences and monitor improvement plans for agencies that
consistently fail to meet goals.

♦ Recognize agencies that successfully meet goals and show improvement.

♦ Increase transparency & information in the M/WBE program.

1
2
Background
In 2005, the City Council passed and Mayor Bloomberg signed Local Law 129, establishing a
mandate to enhance the ability of minority- and women-owned businesses to compete for city
contracts. To implement the law, the Department of Small Business Services (SBS) is charged
with promoting awareness of these business enterprises to City agencies, and ensuring their
meaningful participation in the city procurement process, through the City’s Minority and
Women-Owned Business Enterprise Program (M/WBE).

Goals for the M/WBE program were established by LL 129-2005,1 based on the findings of
consultants retained by the City Council who studied the capacity of firms owned by minorities
and women, and the disparities between the availability of such firms and their utilization in
City procurements.2 The following goals were established as a target for agencies to meet in
each demographic category and industry.3 The goals are required to be measured by the total
value of the M/WBE contracts, not the number of M/WBE contracts.4

Source: Fiscal Year 2010 Preliminary Report

This report was prepared by Michael Freedman-Schnapp, Policy Director for City Councilmember Brad Lander, with
st
research assistance from Traci Sanders. Data on M/WBE performance is for the period July-Dec 2009 (1 half of FY
2010) and is based on an in-house analysis of the SBS/MOCS “FY 2010 Preliminary Report” available at
www.nyc.gov/html/sbs/downloads/pdf/ll_129_april_2010_city_council_report.pdf.
1
While the report that is the prime source of data for this analysis is called a "compliance report," for the
administration to be compliant with the letter of the law does not require the contracting goals to be completely
met. Compliance is legally defined in LL 129 as agencies following their stated plans and SBS/MOCS reporting to
the Council on a semi-annual schedule defined in the law. Goals set in the law are aggregate contracting targets
for agencies designed to be compliant with Federal court rulings and New York State law.
2
The NYC Law Department provides background on the program at
http://www.nyc.gov/html/law/html/opportunities/opportunities.shtml and SBS provides detail on the program at:
http://www.nyc.gov/html/sbs/html/procurement/mwbe.shtml
3
Standardized services differs from professional services in that they typically do not require the provider to have
experience in a specialized field or hold an advanced degree, i.e. security, janitorial, and secretarial.
4
These targets apply to contracts under $1 million in total value. Subcontracts of large contracts can be included
in the program, however, this amounted to only a small amount of the total program’s contract value. More detail
about subcontract performance is provided on page 16.

3
Agencies must report semi-annually to the Director of the Mayor’s Office of Contracts (MOCS),
who prepares a semi-annual compliance report, in consultation with SBS, to be submitted to
the Mayor and the City Council. If it is determined that an agency is not making adequate
progress towards its goals, SBS and/or the Director of MOCS can take the following steps:

1. Require the agency to submit more frequent reports about its procurement activity;

2. Require the agency to notify SBS and the Director of MOCS, prior to solicitation of bids
or proposals for, and/or prior to award of, contracts in any category where the agency
has not made adequate progress toward achieving its utilization goals;

3. Reduce or rescind contract processing authority delegated by the Mayor; or,

4. Other action SBS or MOCS deems appropriate.

If the agency is still determined to not be making progress, SBS or the MOCS Director have the
option to resolve the matter informally. If the agency still fails to make progress, these findings
are required to be submitted in writing to the Mayor and the City Council. The Mayor, under
the law, is ultimately responsible for the performance of agencies under the program.

Citywide Progress Report

In April 2010, SBS released the FY 2010 Preliminary Compliance Report for the first six months
of the fiscal year, July 1 through December 31, 2009, summarizing accomplishments for the
M/WBE Program. That report is the basis for this policy brief, and is available in full at
http://tinyurl.com/mwbenyc. According to this report, City agencies continue to fall far short
of their goals under the program.

Percentage of Contracts and Value

♦ Contracts awarded to M/WBEs amounted to only 1.6% of the total value of all contracts
reported on by SBS and MOCS ($5.3 billion for the six month period).

♦ Even looking only at contracts under $1 million (the contracts for which goals are set by
LL 129), only 12.5% of the total value were awarded to M/WBEs — less than half of the
goal established by LL 129.5

5
LL 129 does not set a simple, single overall goal. In the one industry area where goals exist for all four
demographic categories (goods procurement), the total goals sum to 35%. In the two industry areas in which

4
 ♦ While 14.6% of the number of contracts went to M/WBEs, these were
disproportionately small contracts.

Table 1: Overview of M/WBE Contracting Performance

Contracts Value % of Contracts % of Value

Total M/WBE 2,926 $86,974,201 14.6% 1.6%
Asian 1,015 $36,151,525 5.1% 0.7%
African-American 517 $5,635,029 2.6% 0.1%
Hispanic 472 $36,955,909 2.4% 0.7%
Caucasian Women 1,036 $8,229,794 5.2% 0.2%
Total Contracts* 20,034 $5,346,560,303 100.0% 100.0%

*Total of contract data provided by SBS

Agencies Efforts to Meet Targets

♦ No agency met more than half of the targets set by LL 129, except for SBS.

♦ A large majority of City agencies met less than a quarter of their targets (27 out of 35
agencies).

♦ Of the 368 goals set across 35 agencies, the City only met 13% (49) of its targets.

♦ The best performing agencies under the targets set by law include the Department of
Small Business Services (70% of targets met), Probation (50%), Juvenile Justice (40%),
Buildings (40%) and the NYPD (40%).

♦ Fifteen City agencies met zero of the contracting goals (including DCAS, Parks, DEP,
Transportation, FDNY, and Sanitation).

Performance by Ethnicity

♦ Only 11% of targets for African-American-owned business were met.

♦ Only 14% of targets for Latino-owned businesses were met.

♦ Only 7% of targets for Caucasian Women-owned businesses were met.

specific targets are set for three of the four demographic categories, the total goals are 25% (standardized
services) and 30% (professional services).

5
Performance by Type of Contract

♦ No agency met their construction targets.

♦ Agencies met only 5% of their targets for professional services.

♦ Agencies met only 9% of their targets for standardized services (e.g. contracts for
security, janitorial, and transportation services).

♦ 26% of the agencies met their targets in goods contracts (primarily through contracts
with Asian-American-owned firms).

♦ Performance was substantially better on some subcontracts, which agencies specifically

designated for M/WBE efforts – 36% of the value of these subcontracts went to
M/WBEs. However, these contracts in aggregate were worth just $5.5 million out of the
City’s $5.3 billion in contracting during this period – one-tenth of one percent – and just
6% of the total value of all M/WBE contracts.

Table 2: Percent of Agencies Meeting Contract Goals

(Measured by Value for Contracts Under $1 Million)
by Race/Sex & Industry
African- Caucasian
Asian Hispanic All Categories
American Women
Construction Services n/a 0% 0% n/a 0%
Goods 38% 24% 32% 9% 26%
Professional Services n/a 3% 3% 9% 5%
Standardized Services n/a 11% 11% 3% 9%
All Contracts 38% 11% 14% 7% 13%

Even considering their small average size M/WBE contracts make up a very small percent of
total contracts issued.

Table 3: MWBE Contracts as a Percent of Total Contracts

(Measured by Number of Contracts)
by Race/Sex & Industry
Professional
Construction Goods Standard Services
Services
Asian 9% 3% 1% 7%
African-American 1% 4% 1% 2%
Hispanic 4% 4% 0% 1%
Caucasian Women 1% 11% 1% 1%

6
Insufficient Explanations for Abysmal Performance

The City’s April 2010 Preliminary Compliance Report for this period offered several explanations
for the extremely poor performance across agencies and categories. However, these
explanations are inadequate to explain these agencies’ failures under the program. The
explanations in the report are provided here in italics, with comment on their insufficiency:

• The program only covers certain industries, excluding for example non-profits and
human services.
However, since the public policy goal of the program is to help build assets of groups
traditionally excluded from business ownership, non-profits would be inappropriate to
include since they are not technically “owned” nor should they be asset-generating
entities for their leadership. Thus they were appropriately not included in LL 129.

• The program excludes certain procurement methods such as emergency procurements,

interagency and government-to-government procurements, as well as sole source
procurements.
Emergency and sole source contracts were not included, on the assumption that it
would be harder for City agencies to meet goals in these categories, without the normal
opportunities to advertise and bid. If SBS believes emergency and sole source
contracting are a meaningful area of M/WBE contracting, they should provide statistics
on these areas in the next report. Interagency government contracts do not make sense
to include for the same reason that non-profits are excluded from the program.

• There are no goals for gender/ethnicity categories in certain industries.

The 12 out of 16 possible categories were identified because of persistent disparities in
those industries for specified minority groups. It is unlikely that the addition of the four
combinations of industries and racial/ethnic/gender categories that were not set for
targets would bring agencies further towards their goals set by Local Law 129. However,
again, if SBS believes these categories show real progress toward M/WBE contracting,
they should provide statistics on these areas in the next report.

• The numbers exclude contracts awarded to minority or woman-owned businesses that

were not certified, but may have been in the process of being certified as MWBEs.
While this would be encouraging if it is true, then the next report should show
significant process. The next report could also include statistics on businesses seeking
M/WBE certification.

7
While the Department of Small Business Services (SBS) had by far the best performance as an
agency in meeting its M/WBE contract goals (meeting 70% of its targets, the only City agency to
meet more than half of its goals), these explanations are inadequate to account for the large-
scale failure to meet goals. It appears from the results thus far, and from the lack of
information provided on corrective action plans, that SBS and the Mayor’s Office of Contracts
have not been able to compel many agencies to fully or even partially meet their goals.

One significant constraint on the City’s M/WBE efforts overall are State law and Federal court
rulings that limit the amount of intervention in the contracting process that agencies can
engage in for M/WBEs.6 State law prevents the City from directing contracts to qualified
M/WBEs if they are not the lowest responsible bidder. As a result, Local Law 129 was
specifically crafted to encourage strategies that comply with the state and federal legal
framework. However, the broader legal framework this program must fit into does not
prevent the Mayor from holding agencies accountable for their performance in this program.
Nor does it mean that the administration cannot measure and report on the effectiveness of
the educational, outreach, and policy review efforts each agency engaged in under LL 129.

A central question in improving the M/WBE program is how the administration is making
procurement officers in each agency increase opportunities for certified M/WBEs to bid. The
City's procurement processes are notoriously labyrinthine and the many different ways that
contracts are put out to bid can be confusing to new or potential contractors. While SBS takes
an active role in promoting opportunities to newly-certified companies, it is not clear that the
specific practices of agencies that repeatedly fail to meet goals or show improvement are
subjected to increased scrutiny so that the administration can identify systemic barriers.
Increased public reporting on agency efforts is warranted to shine light on what is actually
happening inside the City's procurement systems.

It is also unclear if issues with certifying businesses play a role in the failure to meet M/WBE
goals. The 2010 preliminary report touts progress made in increasing certifications of M/WBEs
and accepting M/WBE certifications from other programs, although no statistics are offered in
support.7

6
State law prevents the City from directing contracts to qualified M/WBEs if they are not the lowest responsible
bidder. Testimony of Marla Simpson, Director of MOCS. Hearing of the New York City Council Committee on
Contracts, “Oversight: The Department of Small Business Services’ Compliance with Local Law 129 and
Administration of the MWBE program,” 11/24/09.
7
The Preliminary Mayor's Management Report for FY2010 reflects increased certifications in the first 4 months of
FY10 (262 new certifications) compared to the same period for FY09 (194 new certifications), for a total of 2,478

8
Recommendations

We hope that the annual compliance report for FY2010, due out this fall, will show far better
performance than the semi-annual report for the first six months of the fiscal year. However,
given how poor agency performance was during this period, it is critical that Mayor Bloomberg
take immediate action to address failures under the M/WBE program. A more thorough
investigation of the reasons that agencies do not meet their goals, along with corrective action
plans with real consequences, should be included in the annual report. The following
recommendations would begin to address the failures identified in the City’s semi-annual
report, and put New York City back on track toward meeting its M/WBE goals.

Provide Leadership at City Hall on Encouraging Diversity and Minority & Female
Empowerment

• The Mayor should appoint a senior member in the Mayor’s Office to direct diversity
and empowerment issues, including coordinating M/WBE enforcement across agencies.
While the Department of Small Business Services (SBS) cares about the M/WBE program
(as evidenced by its own internal performance), it does not have any meaningful
oversight or enforcement power over other agencies.

• City Hall leadership should include regular review and action based on the data
provided, using this information to recognize success and require improvement in
areas of failure. The Bloomberg Administration has made a hallmark of the use of data
to improve agency performance, and this practice must be made a meaningful part of its
efforts in the area of diversity and minority and female empowerment.

Implement Real Consequences for Agencies that Consistently Fail to Meet Goals

• The Mayor should establish clear consequences and corrective action plans for agencies
that fail to meet goals, such as closer supervision of procurement units, more frequent
reporting and interventions in agencies’ contract promotion processes.

certified M/WBE businesses as of November 2009. The City's Online Directory of Certified Businesses shows 2,639
certified M/WBEs as of 9/2/2010 and 44 new M/WBEs certified in August 2010, suggesting a slow down in the
certification rate or an increase in certified contractors failing to recertify in recent months (Data accessed from
http://mtprawvwsbswtp1-1.nyc.gov/Search.aspx).

9
 • There must be increased scrutiny of agencies with large numbers of contracts that fail
to meet goals. For example, less than one percent of Sanitation and DEP contracts went
to M/WBEs — together these agencies contracted out $1.6 billion during the 6-month
reporting period.

Recognize Agencies That Successfully Meet Goals and Show Improvement

• As SBS and the Mayor’s Office have already done, they should continue to recognize
agencies that meet their goals, or make significant progress in improving their M/WBE
performance.

• The Administration should attempt to replicate success across agencies. While most
agencies met construction contracting goals in at least one area, several agencies met
none. While every agency’s procurement process is slightly different and has different
needs, it is clear that some agencies have found ways to successfully contract with
M/WBEs. Successful tactics should be identified and shared with agencies that fail to
meet these goals.

Increase Transparency & Information

• M/WBE reports should more clearly report whether the overall and agency-level goals
of LL 129 have been met. While informative and in-depth, the SBS progress report does
not clearly say who is meeting the targets specified by LL 129. The format chosen to
report the data requires data-intensive calculations to determine which agencies are
meeting their goals.

• Report on whether M/WBEs are actually bidding on contracts in sufficient numbers. A

key weakness in the compliance reports are that they do not provide any data on the
numbers of M/WBEs submitting bids or the quality of those bids, thus making it difficult
to determine if the outreach work that agency contracting officers are engaging in are
working. Collecting and releasing this data would shed light on the effectiveness of
individual agencies’ efforts.

10
• Open up interagency progress reports to the public. Each agency must submit a
progress report to SBS. It is unclear to what extent these reports detail the agency’s
efforts towards meeting the goals beyond a simple numerical report. These interagency
reports should be open to the public to help uncover what efforts each agency has
engaged in (or failed to engage in) to meet their MWBE goals.

• Increase reporting on categories of contracts that the administration says are

problematic in calculating the goals. This means that full subcontracting, emergency
procurement, sole-source contracts and certifications in process should all be included
in the next report, due in fall 2010.

• Use the fall 2010 annual compliance report on FY2010 as an opportunity to more fully
and honestly to address the City’s shortcomings in meeting M/WBE contracting goals,
and set a course for improvement moving forward. While we hope that the full-year
report will show better performance than the semi-annual report, given the very low
numbers for the first half of the year, it is unlikely to identify meaningful overall success.
Rather than seek to obscure the facts, we urge the Bloomberg Administration to use the
annual report as an opportunity to put forward an honest analysis, and to set a real
course of improvement in M/WBE contracting in FY2011.

11
 Appendix

Number of MWBE Contracts By Industry

Number of % African- % Caucasian
% MWBE* % Asian % Hispanic
Contracts American Women

Architecture/Engineering 72 15.3% 11.1% 0.0% 1.4% 2.8%

Construction Services 351 15.4% 8.5% 1.4% 4.0% 1.4%
Goods 8717 21.3% 3.5% 4.0% 4.4% 10.8%
Professional Services 1076 3.3% 1.2% 0.8% 0.4% 0.8%
Standardized Services 9818 9.9% 6.7% 1.6% 0.7% 0.8%
Grand Total 20034 14.6% 5.1% 2.6% 2.4% 5.2%

Number of Contracts By Dollar Range

Less than $5k 16897 14.4% 5.2% 2.5% 2.3% 5.0%
$5k to $100k 2562 18.1% 4.6% 3.3% 3.0% 7.4%
$100k to $1M 287 7.0% 2.8% 1.0% 1.7% 1.4%
Greater than $1M 288 4.5% 2.1% 0.3% 1.7% 0.3%
Grand Total 20034 14.6% 5.1% 2.6% 2.4% 5.2%

*% MWBE may not exactly equal total of demographic categories because of rounding

Percent of Agencies Meeting Contract Value Goals by Race/Sex & Industry

African- Caucasian
Asian Hispanic All Categories
American Women
Construction Services n/a 0% 0% n/a 0%
Goods 38% 24% 32% 9% 26%
Professional Services n/a 3% 3% 9% 5%
Standardized Services n/a 11% 11% 3% 9%
All Contracts 38% 11% 14% 7% 13%

12
 Value of MWBE Contracts by Agency

% %
Total Value of Total Value of %
Agency % MWBE % Asian African- Caucasian
Prime Contracts MWBE Contracts Hispanic
American Women
DSBS 812,899 360,972 44.4% 11.9% 17.5% 12.3% 2.7%
DJJ 2,138,086 745,221 34.9% 4.3% 6.9% 11.9% 11.8%
PROB 217,511 63,000 29.0% 1.9% 13.8% 12.5% 0.8%
OEM 415,194 102,230 24.6% 24.1% 0.0% 0.0% 0.5%
CULT 1,811,638 361,415 19.9% 13.8% 0.3% 3.7% 2.1%
CCHR 90,701 17,450 19.2% 0.0% 15.9% 1.5% 1.9%
DFTA 867,280 162,188 18.7% 0.6% 0.8% 1.7% 15.6%
NYPD 11,581,280 2,094,818 18.1% 2.6% 3.2% 3.4% 8.9%
DOF 1,470,625 254,222 17.3% 2.9% 4.2% 0.0% 10.2%
DCP 189,669 29,893 15.8% 10.5% 1.0% 1.6% 2.6%
DHMH 20,285,270 2,975,764 14.7% 1.3% 10.2% 1.1% 2.1%
DHS 3,613,201 380,630 10.5% 4.2% 1.5% 1.0% 3.9%
ACS 10,835,080 1,092,762 10.1% 6.1% 3.0% 0.3% 0.7%
HRA 6,298,980 581,923 9.2% 2.1% 1.4% 1.9% 3.8%
HPD 15,030,018 1,386,360 9.2% 5.8% 1.0% 0.7% 1.7%
DOC 16,722,081 1,303,080 7.8% 1.4% 0.9% 2.1% 3.4%
LPC 42,981 3,255 7.6% 0.0% 5.1% 1.2% 1.3%
TLC 342,542 24,384 7.1% 0.0% 6.3% 0.6% 0.2%
DYCD 215,340 14,889 6.9% 0.0% 4.2% 2.7% 0.0%
DPR 295,994,021 19,196,931 6.5% 0.2% 0.0% 5.8% 0.4%
Law 19,607,947 1,113,419 5.7% 0.1% 0.0% 0.1% 5.5%
FDNY 14,297,573 735,553 5.1% 0.4% 1.0% 0.9% 2.9%
DCA 404,646 16,704 4.1% 0.0% 0.2% 0.0% 4.0%
DOT 851,263,245 14,707,967 1.7% 0.3% 0.0% 1.4% 0.0%
DOB 14,712,768 213,306 1.4% 0.1% 0.8% 0.1% 0.4%
DDC 1,644,606,300 22,223,610 1.4% 1.0% 0.0% 0.3% 0.0%
DCAS 750,644,871 9,542,625 1.3% 1.1% 0.0% 0.0% 0.1%
DORIS 79,437 781 1.0% 0.0% 0.0% 0.0% 1.0%
DOITT 15,106,084 137,958 0.9% 0.4% 0.4% 0.1% 0.0%
CCRB 281,426 1,920 0.7% 0.0% 0.1% 0.4% 0.2%
DEP 1,056,747,247 6,507,651 0.6% 0.5% 0.0% 0.0% 0.1%
BIC 143,579 785 0.5% 0.0% 0.0% 0.5% 0.0%
DOI 96,855 135 0.1% 0.0% 0.1% 0.0% 0.0%
DSNY 589,189,445 620,400 0.1% 0.0% 0.0% 0.0% 0.0%
CJC 404,483 - 0.0% 0.0% 0.0% 0.0% 0.0%
Grand Total $5,346,560,303 $86,974,201 1.6% 0.7% 0.1% 0.7% 0.2%

% MWBE may not exactly equal total of demographic categories because of rounding

13
 Number of MWBE Contracts by Agency

Number of % African- % Caucasian

Agency % MWBE % Asian % Hispanic
Contracts American Women

HRA 337 37.1% 11.0% 9.2% 4.5% 12.5%

DCAS 873 32.4% 4.6% 4.2% 3.6% 20.5%
PROB 38 31.6% 10.5% 5.3% 10.5% 5.3%
DSBS 128 31.3% 6.3% 11.7% 6.3% 7.0%
DOC 486 30.7% 6.6% 6.2% 7.6% 10.5%
DJJ 265 25.7% 5.3% 8.7% 5.7% 6.0%
DEP 2,011 19.6% 2.8% 2.7% 3.6% 10.4%
DOB 94 19.1% 3.2% 3.2% 4.3% 8.5%
CULT 91 18.7% 7.7% 2.2% 5.5% 3.3%
LPC 23 17.4% 0.0% 8.7% 4.3% 4.3%
CCHR 55 16.4% 0.0% 1.8% 5.5% 9.1%
DOITT 113 15.9% 3.5% 0.9% 8.0% 3.5%
DCP 73 15.1% 4.1% 1.4% 4.1% 5.5%
DHMH 842 14.0% 2.6% 3.4% 3.0% 5.0%
DPR 1,537 13.9% 0.9% 2.3% 3.7% 7.0%
DHS 138 13.8% 0.7% 6.5% 2.9% 3.6%
ACS 300 13.7% 3.7% 4.3% 1.7% 4.0%
HPD 6,461 13.0% 10.0% 1.8% 0.3% 0.9%
DDC 295 12.9% 3.7% 1.7% 2.4% 5.1%
NYPD 1,974 12.5% 2.0% 2.0% 2.7% 5.8%
DFTA 198 12.1% 1.0% 1.5% 2.5% 7.1%
TLC 124 12.1% 0.0% 8.9% 1.6% 1.6%
DSNY 1,184 11.8% 2.2% 1.9% 3.8% 3.9%
FDNY 618 11.7% 0.5% 1.3% 3.2% 6.6%
DOF 195 10.8% 3.6% 5.6% 0.0% 1.5%
DYCD 89 9.0% 0.0% 5.6% 3.4% 0.0%
DOT 643 7.6% 2.5% 0.6% 1.4% 3.1%
Law 457 7.0% 2.2% 0.4% 1.5% 2.8%
DCA 91 6.6% 0.0% 1.1% 0.0% 5.5%
CCRB 65 4.6% 0.0% 1.5% 1.5% 1.5%
DORIS 27 3.7% 0.0% 0.0% 0.0% 3.7%
DOI 39 2.6% 0.0% 2.6% 0.0% 0.0%
BIC 45 2.2% 0.0% 0.0% 2.2% 0.0%
OEM 115 1.7% 0.9% 0.0% 0.0% 0.9%
CJC 10 0.0% 0.0% 0.0% 0.0% 0.0%
Grand Total 20,034 14.6% 5.1% 2.6% 2.4% 5.2%

% MWBE may not exactly equal total of demographic categories because of rounding

14
 MWBE Target Performance
Contracts Over $1 Million Omitted, per LL 129 Targets
For Agencies with More Than $100,000 in Qualifying Contracts*

Total Value of % of Contracts

Professional Standard
Targets Targets % of Targets Construction Goods Targets Contracts Under $1M
Services Services
Met Set** Met Targets Met (2) Met (4) Under $1M with MWBEs
Targets Met (3) Targets Met (3)
($1,000s) by Value
DSBS 7 10 70% n/a 75% 67% 67% 813 44%
PROB 5 10 50% n/a 75% 0% 67% 218 29%
DJJ 4 10 40% n/a 50% 0% 67% 2,138 35%
DOB 4 10 40% n/a 75% 0% 33% 1,513 14%
NYPD 4 12 33% 0% 100% 0% 0% 9,198 23%
DOC 3 10 30% n/a 50% 33% 0% 4,953 26%
DOF 3 10 30% n/a 50% 33% 0% 1,471 17%
DOITT 3 10 30% n/a 75% 0% 0% 1,576 9%
DDC 2 12 17% 0% 25% 0% 33% 14,218 25%
DHMH 2 12 17% 0% 50% 0% 0% 9,550 11%
DYCD 2 10 20% n/a 50% 0% 0% 215 7%
Law 2 10 20% n/a 50% 0% 0% 4,009 2%
CULT 1 10 10% n/a 25% 0% 0% 1,812 20%
DCP 1 10 10% n/a 25% 0% 0% 190 16%
DFTA 1 12 8% 0% 0% 33% 0% 867 19%
DHS 1 12 8% 0% 25% 0% 0% 2,219 17%
HPD 1 12 8% 0% 25% 0% 0% 13,190 11%
TLC 1 10 10% n/a 25% 0% 0% 343 7%
ACS 0 10 0% n/a 0% 0% 0% 4,541 24%
BIC 0 10 0% n/a 0% 0% 0% 144 1%
CCRB 0 10 0% n/a 0% 0% 0% 281 1%
CJC 0 6 0% n/a n/a 0% 0% 404 0%
DCA 0 10 0% n/a 0% 0% 0% 405 4%
DCAS 0 12 0% 0% 0% 0% 0% 98,600 10%
DEP 0 10 0% n/a 0% 0% 0% 16,603 14%
DOT 0 12 0% 0% 0% 0% 0% 11,069 8%
DPR 0 12 0% 0% 0% 0% 0% 38,497 11%
DSNY 0 12 0% 0% 0% 0% 0% 6,621 9%
FDNY 0 12 0% 0% 0% 0% 0% 7,731 10%
HRA 0 10 0% n/a 0% 0% 0% 5,077 11%
OEM 0 10 0% n/a 0% 0% 0% 415 25%
Grand Total 49 368 13% 0% 26% 5% 9% 259,190 13%
*Omitted: Landmarks, Human Rights Commission, Investigations and Records
**”Targets Set” represents the number of industry/demographic targets that each agency is should meet according to LL 129—i.e. most agencies have no
construction contracts and therefore must meet 10 targets. Those that have construction contracts have 12 targets set by LL 129.

15
 Subcontracting Performance

Under State law, agencies have more legal ability to mandate M/WBE contracting in
subcontracts than in prime contracts. LL 129 allows an agency to designate one of these
subcontracts to have specific participation goals. LL 129 outlines specific M/WBE targets for
large construction and professional services contracts for these cases.

A summary of the data provided by the FY10 Preliminary Compliance report is shown below.
There were 186 subcontracts bid with participation goals set during the reporting period, 67
(36%) of which went to M/WBEs. While this performance is commendable, it still represents a
small portion of overall M/WBE contracts—6% of the value and 2% of the number of all M/WBE
contracts—and a miniscule portion of all City subcontracts.

Targets Set by LL 129 for

Actual MWBE Subcontracts,
Subcontracts Where Participation
First Half FY10*
Goals Are Set*
Construction Professional Construction Professional
Services Services Services Services
Asian 9.47% No goal 6% 0%
African-American 12.63% 9.00% 19% 30%
Hispanic 9.06% 5.00% 5% 30%
Caucasian Women No goal 16.50% 6% 24%
All M/WBEs 31.16% 30.50% 36% 84%
Targets Met 1 of 3 3 of 3
Total MWBE Value $ 5,539,802 $ 168,180
Total Subcontract Value $ 15,430,623 $ 199,701

*Shown as a percent of subcontract value

16
 Methodology

Data on M/WBE performance under Local Law 129 is for the period July-Dec 2009 (1st half of FY
2010) and is based on an in-house analysis of the SBS/MOCS “FY 2010 Preliminary Report”
available at www.nyc.gov/html/sbs/downloads/pdf/ll_129_april_2010_city_council_report.pdf.

Data for the main analysis of prime contracts was taken from the table “Appendix: Prime
Contracts Disaggregated by Industry, Dollar Range and Gender/Ethnicity,” pp. 22–34 of the
FY10 Preliminary Report. Data from that table was inputted into a database which allowed the
data to be subtotaled by agency, industry and gender/ethnicity to form tables which are
summarized on pp. 12–14 of this report. That agency-level data was then recompiled into a
master table summarized on page 15 of this report (with contracts over $1 million excluded as
per LL 129 goals) to determine which targets set by LL 129 each agency had met.

Subcontracting data on page 16 of this report was extracted from the second chart on page 35
of the FY10 Preliminary Report, “Count and Value of Subcontracts for which Participation Goals
were Set, Disaggregated by Agency and Industry.”

17