Wednesday, September 23, 2026, 10 a.m. (New York City time), 250 Broadway - 8th Floor - Hearing Room 2
Committee: Committee on Contracts
The Committee on Contracts, chaired by Council Member Lincoln Restler, held an oversight hearing on the City's Minority and Women-owned Business Enterprise (M/WBE) program and heard three bills: Intro 208 (adding Middle Eastern and North African Americans to recognized M/WBE groups), Intro 694 (requiring targeted agency outreach when utilization goals are missed, sponsored by Council Member Amanda Farías), and Intro 896 (prohibiting City purchase of non-compostable single-use cups). City officials including Chief Business and Diversity Officer Michael J. Garner presented program metrics, discussed a new B2G data platform, and defended the administration's record, while council members pressed on disparities for Black- and Latino-owned firms, poor subcontracting data reporting, and delayed contract registrations. Public testimony largely supported the MENA inclusion bill and urged changes to the cups bill to remove the compostable exemption. No votes were taken during the hearing.
0:01 To thank you settle down find
0:01 your seats guys we're
0:03 beginning very shortly find
0:04 thank you good morning good
0:27 morning welcome to New York
0:28 City Council hearing on the
0:31 committee on contracts at thi
0:32 stime please sounds electronics
0:33 do not good morning good
1:27 morning welcome to the New
1:27 York City Council hearing on
1:29 the committee on contracts at
1:31 this time please sounds
1:33 electronics and do not
1:34 approach the dais.
1:34 If you are are testifying
1:35 today make sure you please
1:36 ensure that you have filled
1:37 out a slip but the sergeant at
1:39 arms any other questions or
1:40 concerns you reach a sergeant
1:42 at arms and we will kindly
1:43 assist you thank you for your
1:45 cooperation chair you ready t
1:48 obegin thank you thank you so
1:50 much sergeant uh good morning
1:52 um good morning my name is
1:53 Lincoln ressler I have the
1:55 privilege of chairing the
1:57 committee on contracts
1:58 . And usually at the end of my
1:59 opening remarks I thank the
2:02 staff but I just wanted t
2:03 oactually do that at the
2:04 beginning because it's
2:06 important we are fortunate t
2:08 ohave a like truly expert
2:11 committee counsel and and alex
2:11 polan off so thank you so much
2:14 for you you such helpful
2:16 guidance to us as as the
2:18 relatively New chair of this
2:19 committee and I want to also
2:21 thank our policy analyst alex
2:22 yablon and the principal of
2:23 financial analyst newly t
2:25 othis committee andrew lane
2:26 lawless thank you all for your
2:27 hard work and I especially
2:29 want to thank my chief of
2:30 staff molly haley who is
2:32 brilliant and all of the smart
2:33 things that are said today are
2:34 a result of her and all of the
2:36 mistakes are a result of me so
2:39 I'll begin with my opening uh
2:42 we're having an oversight
2:43 hearing on the city's minority
2:44 and women owned business
2:46 program New York City first
2:47 developed an m w b program
2:49 back in 19 89 and after a
2:50 review of the city's contracts
2:52 found that mw viewers were
2:55 substantially underutilized
2:55 unfortunately the program was
2:56 halted by Mayor giuliani one
2:58 of his many uh but the City
3:02 council re established the
3:03 program back in 2005 and over
3:06 the past 20 years we have made
3:08 significant strides in opening
3:09 up opportunities for in City
3:12 contracting through small
3:13 purchase programs mentorship
3:15 and ambitious agency goals but
3:17 much more remains to be done
3:18 the comptroller's office
3:20 releases a fantastic report
3:21 each year on the City of New
3:23 York sprog rehs supporting m
3:25 dubs that provides a detailed
3:27 breakdown on where City
3:28 agencies are doing well and
3:29 where they're coming up short
3:31 n f y 25 m w bs received just
3:34 5% of the city's total
3:35 contracting span out of a $46
3:39 billion contract budget these
3:40 numbers have remained
3:41 relatively stagnant for years
3:43 looking more specifically at
3:45 contracts at contracts that
3:46 are subject to be goals under
3:48 local law hundred 74 there was
3:50 an increase in the number of
3:51 contracts going to ubs last
3:54 year to 65% 20539 contracts
4:00 but the share of contract
4:01 value going to m fell from 17%
4:05 back in 3 24 2 8% in about
4:09 half as much mw one more of
4:13 the contracts 25 but got less
4:15 of the money I commend the
4:17 office of the of mw b for the
4:19 increase in the number of
4:21 contracts awarded to ubs and I
4:24 commend for the increased
4:26 number of certified mw w b's
4:28 but I am concerned that mw bs
4:31 are only finding success in
4:33 small dollar contracts and not
4:34 growing at the same pace as
4:37 and and spend on mw is not
4:39 growing at the same pace as
4:40 our overall contract budget
4:42 the average contract
4:44 registered to a non certified
4:45 firm a non b was $3.6 million
4:49 but the average contract was
4:51 under 750000 less than 25%
4:54 this is particularly notable
4:56 in our construction contracts
4:58 ubs's received just over 10%
5:00 of the citywide contract value y
5:04 troubling deeply troubling
5:06 disparity.
5:06 Within abm contracts for all
5:09 of the mw b contracts awarded
5:11 last year black owned firms
5:12 account for just 7% of
5:16 contracts and latino owned
5:17 firms account for 7.9% the
5:19 city's black and latino
5:21 population are 22 and 29
5:23 %respectively a majority of New
5:26 York City the disparities are
5:26 even worse when we account for
5:29 gender male owned firms
5:29 account for over eight times
5:32 as many contracts male owned
5:35 account for over eight times
5:37 as many contracts as female
5:40 owned firms firms owned by
5:41 black women account for just
5:44 1.17% of mw w b contracts
5:46 awarded and firms owned by
5:48 latinas account for 1.22% this
5:51 data is just unacceptable and
5:53 I am keen to understand what
5:54 efforts are under way in the
5:56 New administration to open up
5:58 more for black and latino
5:59 owned businesses especially uh k
6:02 women and latinas n f y 2
6:05 5about 65% of b contracts were
6:10 registered retroactively
6:10 meaning that the work began
6:12 before the paperwork was done
6:14 to be able to actually pay the
6:14 company for a small firm that
6:16 means the company needs t
6:18 ofront the funds to complete
6:20 the work while they wait for
6:20 the City to pay that kind of
6:22 risk can be untenable for a
6:25 small business and there are
6:26 also significant gaps in the
6:27 data that is reported to the
6:30 public since f I 22 the City
6:32 has registered nearly $33
6:35 billion in contracts subject
6:37 to local law hundred 74 goals
6:40 with no subcontract records
6:42 whatsoever I just wanna say
6:43 that again $33 billion in
6:45 contracts subject to local law
6:48 hundred 74 goals with no
6:50 subcontract data whatsoever
6:52 records exist for about 110
6:54 0of the roughly 12000 prime
6:57 contracts just under just
6:58 about 9% of the total
6:59 contracts and more than 2
7:01 0agencies that's nearly half of
7:03 the City agencies report
7:04 nothing whatsoever on
7:05 subcontracts during that time
7:07 the department of design and
7:08 construction manages to report
7:10 this data so it can be done
7:14 but most agencies simply don't
7:14 take the time or make the
7:16 effort to report this
7:18 information.
7:18 What this means is that
7:20 there is potentially
7:24 significant utilization
7:25 happening every day with
7:27 subcontractors that are owned
7:28 by black latino asian women
7:30 owned firms but we have
7:32 negligible data without this
7:33 data there is no
7:35 accountability and without
7:36 accountability there will be
7:37 no improvement this issue
7:38 extends to our human service
7:40 contracts as well human
7:42 service contracts are exempt
7:43 from mw b goals but many of
7:46 these contracts use for profit
7:48 operator hires a for profit bs n
7:56 firm to deliver food or run
7:58 security I've introduced
8:00 legislation inter weight 3
8:01 4which would require reporting
8:03 on those subcontracts I'm
8:04 hopeful that better reporting
8:06 on subcontracts will help us
8:08 understand the landscape more
8:10 broadly.
8:10 And identify more firms that
8:12 we can support and connect t
8:15 olarger prime contracting
8:16 opportunities that they be
8:17 qualified for I hope we hear
8:19 more today about how the
8:21 mondaini administration plans
8:23 to increase be contracting
8:25 opportunities especially
8:26 through cultivating a pipeline
8:28 of mw of successful is that
8:31 are already contracting with
8:31 the City so that they can grow
8:33 and take on larger and larger
8:36 contracts I'm also keen t
8:37 olearn more about how we can
8:38 elevate more black and latino
8:40 and especially black women and
8:41 latina firms to do more
8:42 business with the City we'll
8:44 also be hearing three pieces
8:46 of additional legislation
8:47 today intro to 8 8 sponsored
8:49 by Council Member Shahana
8:50 haneef would add middle
8:51 eastern north african
8:53 americans to the minority
8:54 groups recognized under the
8:55 city's m w program firms owned
8:58 by New York er's of middle
8:59 eastern and north african
9:01 descent are effectively
9:02 invisible in our procurement
9:03 data and this bill would begin
9:05 to change that intro 6 9
9:08 4sponsored by Council Member
9:09 for rias and thank you for
9:11 joining us um would require a
9:13 that miss their utilization
9:14 goals to do something about it
9:16 by conducting outreach and
9:17 education targeted to the
9:19 specific mw categories where
9:20 they fell short I think this
9:21 is a great bill and finally
9:24 intro 896 got squeezed into
9:26 this hearing sponsored by
9:27 Council Member and it would
9:29 prohibit City agencies from
9:30 entering into or renewing
9:32 contracts to purchase non
9:33 compostable single use cups
9:34 with exceptions for health and
9:36 safety emergencies and
9:37 agreements already in place
9:38 think this was an old Eric
9:41 bacher bill
9:42 . No not at all they're about
9:42 your bill just kidding and I
9:43 want to recognize that the
9:44 contract and I want to reckon
9:45 thank again the staff who are
9:46 thanked at the beginning for
9:47 doing such a great job I would
9:49 now like to turn over to
9:50 Council Member you
9:51 . Good morning thank you chair
9:53 wrestler members of the
9:54 committee on contracts for
9:56 holding today's hearing on the
9:58 the utilization in City
9:59 contracting and for allowin
10:00 gme a moment to speak in
10:02 support of my bill intro 694
10:05 New York City has established
10:06 utilization goals because we
10:08 recognize that minority and
10:09 women owned businesses have
10:10 historically been shut out of
10:11 government contracting
10:12 opportunities but when an
10:14 agency repeatedly fails
10:16 samitova goals we cannot
10:17 continue relying on the same
10:18 broad outreach and expect a
10:21 different result intro 6 9
10:23 4responds by requiring agencies
10:24 to focus their outreach on the
10:26 specific mw b categories in
10:27 which they are falling short
10:29 that means working with
10:30 community based organizations
10:31 and the office of ethic and
10:33 community media to reach
10:35 businesses through trusted
10:36 local networks and provide
10:38 practical information about
10:39 certification procurement
10:40 opportunities and how t
10:41 ocompete for agency contracts
10:43 this bill would also require
10:45 agency m dub officers t
10:47 omonitor progress within those
10:48 categories and report on how
10:50 these targeted efforts are
10:51 being implemented the this
10:53 creates clearer connection
10:55 between the disparities in
10:57 agency identifies the
10:58 corrective action it takes and
11:00 the results it produces.
11:01 We know there are qualified
11:03 entrepreneurs across the City
11:04 who are ready to do business
11:05 with New York too often
11:07 however they are left trying
11:09 to navigate an unnecessarily
11:11 complicated procurement system
11:12 without the relationships
11:14 information or institutional
11:15 access enjoyed by larger and
11:16 more established firms
11:18 . The responsibility cannot
11:19 remain entirely on small
11:21 businesses to find their way
11:23 into the room when an agency
11:24 consistently fails to reach a
11:25 particular group of businesses e
11:28 responsible for changing how
11:30 it reaches them and continues
11:32 to do so intro 6 94 gives
11:35 agencies a more focused way t
11:36 oclose those gaps and gives the
11:38 council a stronger basis for
11:39 evaluating whether there
11:40 improvement plans are
11:41 producing actual results I'd
11:42 like to thank a wrestler again
11:45 for hearing this piece of and
11:47 thanks to my colleagues who
11:48 have joined me as co sponsors
11:50 I really look forward t
11:51 otoday's testimony from the
11:52 administration as well as
11:53 hearing from the public and
11:54 continuing to work the
11:56 continuing to work together t
11:58 omove intro 6 94 forward thank
11:59 you folks and thank you chair
12:01 thank you so much council
12:03 member aisle turn turn turn
12:04 over to committee counsel t
12:05 oswear on the witnesses and if
12:06 there's a copy of testimony
12:07 we'd love to get.
12:08 It and thank you chair I
12:11 will notice the administration
12:12 testifying testifying today
12:12 please raise your right hands
12:16 ah or giving questions as well.
12:18 Ah do you swear or affirm t
12:19 otell the truth the whole truth
12:21 and nothing but the truth and
12:22 you're hearing today and to
12:24 respond honestly to council
12:25 member questions thank you
12:26 when ready and if you have
12:40 written copies of the
12:41 testimony please share them
12:42 with the sergeants so that we
12:43 chair yes oh uh give him yours t
13:05 he has it oh oh help
13:14 . Feel free to begin great o
13:17 hgood morning um wrestler and
13:20 proposed bill sponsors of
13:21 fairies Hanif and Epstein seen
13:23 name is michael j garner and I
13:25 serve as the city's first ever
13:27 chief business and diversity
13:29 officer it is a pleasure t
13:30 oengage with you on all of our
13:33 shared commitment to the
13:35 advancement of the cities
13:36 program and to the health of
13:39 the overall m w e uh community
13:42 as someone who has served a
13:44 significant portion of my
13:46 career advancing mw b r
13:49 programming first at the New
13:50 York City school construction
13:51 authority for 15 years and at
13:54 the ncaa for 15 years and now
13:56 at the York I'm honored to be
13:57 here representing our program
14:00 and City Hall along with my
14:02 first deputy chief business
14:03 adversity officer dwight flynn e
14:08 office of the contract
14:09 services marks and the New
14:10 York City department of small
14:13 business services considering
14:15 our shared a commitments
14:17 towards continuous
14:18 programmatic and policy
14:18 improvements to the cities mw
14:21 program I am also here t
14:22 oshare some of the great work
14:23 that we have produced over the
14:24 past three years as well as t
14:27 oprovide answers to the
14:29 council's committee questions
14:31 along with my marks and
14:35 colleagues as such I would I
14:36 would like to preface that my
14:38 intended days to respond t
14:39 othe contract of committees and
14:42 to the best of my knowledge
14:44 however we would be more than
14:45 happy to schedule briefings
14:47 with your respective officers
14:49 to discuss matters raised
14:50 today in need of other
14:51 comments and information since
14:54 diversity officer we've
14:58 achieved key m w b successes
15:02 and meaningful accomplishments