Authorizes political subdivisions to award public contracts to participants of a minority and women owned business enterprise program at a cost premium not to exceed ten percent of the lowest bid.
Summary
S06317 would amend New York’s General Municipal Law to give political subdivisions and districts that operate a minority- and women-owned business enterprise (MWBE) program authority to award certain public contracts to an MWBE participant even when that bidder is not the lowest bidder. The bill applies to contracts for goods, services, or construction valued at no more than $1 million, and the award must go to the lowest MWBE bid that is still “reasonably competitive,” meaning it may not exceed the lowest bid by more than 10 percent.
The bill also leaves in place existing recycled-product purchasing rules in section 104-a, which allow public entities to favor recycled products when they meet specifications and remain competitively priced. The new MWBE provision is framed as an available remedy where a disparity has been demonstrated between the availability and utilization of MWBEs in public contracting, tying the preference authority to a documented disparity study.
Impact
If enacted, the bill would create a new procurement exception to the general lowest-bid rule for local governments and other political subdivisions that have adopted MWBE programs based on disparity findings. It would affect public contracting statutes by allowing a limited price preference for MWBE bidders on eligible contracts, potentially expanding contracting opportunities for minority- and women-owned firms while giving local agencies more flexibility in remedying documented underutilization.
Sentiment
The available voting history suggests the bill was received favorably in committee, passing the Senate Procurement and Contracts Committee unanimously by a 6-0 vote. No committee transcript was provided, so there is no recorded debate to indicate broader support or opposition, but the unanimous committee vote points to general agreement on the bill’s purpose of supporting MWBE participation in public procurement.
Contention
The main point of contention inherent in the bill is the tradeoff between procurement cost and remedial contracting policy. Supporters are likely to view the 10 percent premium as a narrowly tailored tool to address documented disparities and improve access for MWBEs, while critics may argue that it departs from strict lowest-bid purchasing and could increase costs for taxpayers or reduce competition. The bill limits that concern by capping the premium, restricting the authority to contracts of $1 million or less, and requiring the MWBE bid to be the lowest MWBE bid that is still reasonably competitive.
Same As
Authorizes political subdivisions to award public contracts to participants of a minority and women owned business enterprise program at a cost premium not to exceed ten percent of the lowest bid.
Authorizes political subdivisions to award public contracts to participants of a minority and women owned business enterprise program at a cost premium not to exceed ten percent of the lowest bid.
Authorizes political subdivisions to award public contracts to participants of a minority and women owned business enterprise program at a cost premium not to exceed ten percent of the lowest bid.
Requires that public contracts be divided by size into large, medium, small and micro contracts for the purpose of increasing opportunities for small businesses, including minority-owned business enterprises and women-owned business enterprises, to participate in state contracts.
Increases the minimum required awarded to minority business enterprises from 15% to 20% and of that, requires a minimum of 10% be awarded to minority owned businesses and a minimum of 10% be awarded to women owned businesses.
Requires that certain contracts let by the office of general services be reserved for small businesses, including minority-owned business enterprises and women-owned business enterprises.
Requires contractors receiving public funds to pay amounts owed to small businesses and minority-owned business enterprises within 10 days of receipt of an undisputed invoice generated by a small business, minority-owned business enterprise or vendor management service and managed service provider on behalf of the small business or minority-owned business enterprise.
Requires contractors receiving public funds to pay amounts owed to small businesses and minority-owned business enterprises within 10 days of receipt of an undisputed invoice generated by a small business, minority-owned business enterprise or vendor management service and managed service provider on behalf of the small business or minority-owned business enterprise.
Establishes minority youth-owned business enterprises in the state of New York and the city of New York; creates certain contracting opportunities for members of minority youth-owned business enterprises; establishes an implementation program and oversight committee for minority youth-owned business enterprises.
Senate Substitute for HB 2228 by Committee on Judiciary - Requiring that a political subdivision hold an open meeting to discuss a contingency fee contract for legal services before approving such contract and requiring the attorney general to approve such contracts.