Taking Affirmative Action to Improve New York State's MWBE ... · Several states have goals for...

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OFFICE OF THE NEW YORK STATE COMPTROLLER DIVISION OF STATE GOVERNMENT ACCOUNTABILITY Thomas P. DiNapoli • State Comptroller Taking Affirmative Action to Improve New York State’s MWBE Program Summary • Procurement can be a potentially powerful tool for governments to promote equal economic opportunities and to counteract discrimination in the marketplace. Over the last several decades, federal, state and local governments throughout the nation have developed programs with the express intent of increasing the number and value of government contracts awarded to minority- owned business enterprises (MBEs) and women-owned business enterprises (WBEs). • Despite the collective efforts of minority- and women-owned business enterprise (MWBE) programs at the federal, state and local levels, minorities and women are still significantly disadvantaged in both the workplace and the marketplace. U.S. Census Bureau data show that minorities and women earn substantially less from their labor – both as employees and as entrepreneurs – than their non-minority male counterparts. This is true both in New York and in the nation as a whole. • The Office of the State Comptroller (OSC) has demonstrated its commitment to improving the State’s MWBE program through various agency activities and has taken a leadership role in promoting MWBE businesses. In 2009, OSC developed a new approach to examining the statewide program which concentrated on promoting communication and providing agencies with more information about performance; conducting focused audits of program activities and results at the agency level; and identifying best practices and common obstacles that affect program success. • While New York’s MWBE program has given targeted businesses access to opportunities that may not otherwise have been available to them, there are persistent problems with vendor certification, goal setting, program results, reporting, program oversight and outreach efforts. • Agency performance data over the last three years show that utilization of MWBE firms continues to be relatively stagnant. The combined percentage of MWBE utilization increased only 1.5 percentage points from 8.1 percent of agency discretionary contract expenditures in State fiscal year 2007-08 to 9.6 percent in 2009-10. Research Brief

Transcript of Taking Affirmative Action to Improve New York State's MWBE ... · Several states have goals for...

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OFF ICE OF THE NE W YOR K S TATE COM P TROLLE R

DIV IS ION OF STATE GOVERNMENT ACCOUNTABIL ITY

Thomas P. DiNapoli • State Comptroller

Taking Affirmative Action to Improve New York State’s MWBE Program

Summary

• Procurementcanbeapotentiallypowerfultoolforgovernmentstopromoteequaleconomicopportunitiesandtocounteractdiscriminationinthemarketplace.Overthelastseveraldecades,federal,stateandlocalgovernmentsthroughoutthenationhavedevelopedprogramswiththeexpressintentofincreasingthenumberandvalueofgovernmentcontractsawardedtominority-ownedbusinessenterprises(MBEs)andwomen-ownedbusinessenterprises(WBEs).

•Despitethecollectiveeffortsofminority-andwomen-ownedbusinessenterprise(MWBE)programsatthefederal,stateandlocallevels,minoritiesandwomenarestillsignificantlydisadvantagedinboththeworkplaceandthemarketplace.U.S.CensusBureaudatashowthatminoritiesandwomenearnsubstantiallylessfromtheirlabor–bothasemployeesandasentrepreneurs–thantheirnon-minoritymalecounterparts.ThisistruebothinNewYorkandinthenationasawhole.

• TheOfficeoftheStateComptroller(OSC)hasdemonstrateditscommitmenttoimprovingtheState’sMWBEprogramthroughvariousagencyactivitiesandhastakenaleadershiproleinpromotingMWBEbusinesses.In2009,OSCdevelopedanewapproachtoexaminingthestatewideprogramwhichconcentratedonpromotingcommunicationandprovidingagencieswithmoreinformationaboutperformance;conductingfocusedauditsofprogramactivitiesandresultsattheagencylevel;andidentifyingbestpracticesandcommonobstaclesthataffectprogramsuccess.

•WhileNewYork’sMWBEprogramhasgiventargetedbusinessesaccesstoopportunitiesthatmaynototherwisehavebeenavailabletothem,therearepersistentproblemswithvendorcertification,goalsetting,programresults,reporting,programoversightandoutreachefforts.

•AgencyperformancedataoverthelastthreeyearsshowthatutilizationofMWBEfirmscontinuestoberelativelystagnant.ThecombinedpercentageofMWBEutilizationincreasedonly1.5percentagepointsfrom8.1percentofagencydiscretionarycontractexpendituresinStatefiscalyear2007-08to9.6percentin2009-10.

ResearchBrief

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• Specificfindingsinrecentlycompletedauditsindicatethatagenciestendtosetlowgoalsononlyaportionoftheirexpenditures,failtomeeteventhoseminimumgoals,lackcoordinatedoutreacheffortstoidentifyandutilizecertifiedMWBEfirms,andpoorlymonitorcontractorcompliance.

•NewYorkrecentlycompletedadisparitystudy–astudytoexaminethedifferencebetweentheavailabilityofMWBEsandtheirutilizationingovernmentprocurement–whichconcludedthatMWBEsinNewYorkStatearepresentinsubstantiallylowernumbers,earnsubstantiallylessandaresubstantiallymorelikelytobedeniedaccesstocreditthanwouldbethecaseifthemarketoperatedinaneutralmannerwithrespecttoraceandgender.

• Although29percentoffirmswereidentifiedasMWBEsinthedisparitystudy,only5percentofNewYork’sprocurementcontractdollarswerespentwithMWBEfirmsfromStatefiscalyears2004through2008.Thestudyconcludedthatthestatisticalandanecdotalevidencesupportstheconclusionthattheseoutcomesaretheresultofdiscrimination.

• Recommendationsincludedinthisreportfocusonatwo-prongedapproachtoimprovingtheState’sMWBEprogram.ThisapproachfirstseekstostrengthentheState’srace-andgender-neutralinitiativestoimproveeconomicopportunitiesforallsmallbusinesses,andthentotailorrace-andgender-basedinitiativesnarrowlytoremedyanyremainingimbalancesineconomicopportunitiesforminoritiesandwomen.WhilesomeoftheserecommendationswerepartiallyaddressedinStatelegislationenactedinJuly2010(Chapters173,174and175oftheLawsof2010),someotherscanbeimplementedadministrativelywithoutlegislativechange.

Introduction

Overthelastseveraldecades,affirmativeactionprogramsintheUnitedStateshavefocusedontherelativesuccessofminoritiesandwomeninthreemainareas:employment,educationandeconomicopportunity.Governmentprogramshaveattemptedtocreateandenhanceeconomicopportunitiesbyprovidinggeneralsupportforsmallbusinessesandtargetedsupportforminority-andwomen-ownedbusinessesthroughvariousmeans,includinggovernmentprocurement.Assuch,governmentprocurementisseenasapotentiallypowerfultoolforgovernmentstopromoteequaleconomicopportunitiesandtocounteractdiscriminationinthemarketplace.

Asaresult,thefederalgovernmentandstateandlocalgovernmentsthroughoutthenationhavedevelopedprogramswiththeexpressintentofincreasingthenumberandvalueofgovernmentcontractsawardedtominority-ownedbusinessenterprisesandwomen-ownedbusinessenterprises.TheseprogramsareintendedtoprovidedirecteconomicbenefittoMWBEfirms,aswellastoincreasethepresenceofthesefirmsinthegovernmentcontractingprocess,therebyreversingtheeffectsofdirectorpassivediscriminatorypracticespresentinmanyaspectsofgovernmentprocurement.

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National Background

Nationally,itisestimatedthatgovernmentprocurementrepresentsabout10percentoftheGrossNationalProduct(GNP),withstateandlocalgovernmentspendingaccountingformorethanhalfofallpublicprocurement.InNewYork,annualStateandlocalgovernmentcontractualspendingtotalsabout$70billion,orabout6percentoftheGrossStateProduct,includingabout$7billionforStatecontractualspendingongoodsandservices.

However,despitethecollectiveeffortsofMWBEprogramsatthefederal,stateandlocallevels,minoritiesandwomenarestillsignificantlydisadvantagedinboththeworkplaceandthemarketplace.U.S.CensusBureaudatashowthatminoritiesandwomenearnsubstantiallylessfromtheirlabor–bothasemployeesandasentrepreneurs–thantheirnon-minoritymalecounterparts.ThisistruebothinNewYorkandinthenationasawhole.

Nationwide,minorityfirmsaccountforabout17percentoftotalbusinessesinthecountry,butearnlessthan3percentoftotalsalesandreceipts.InNewYork,thepatternisevenmorepronounced,withthe25percentoffirmsownedbyminoritiesearninglessthan3percentofsalesandreceipts.

Thesituationisnobetterforwomen.Nationally,womenown28percentofthebusinessesintheUnitedStates,butgenerateonly4percentofthesalesandreceipts.InNewYork,thepatternissimilar,with30percentoffirmsownedbywomenearningabout4percentofsalesandreceipts.Incomparison,menown57percentofbusinessesandaccountfor31percentofsalesandreceiptsnationally,whileinNewYorkmenown60percentofbusinessesandearn31percentofrevenues.

Otheranalysesalsoindicatethatminority-andwomen-ownedbusinessesreceivelessthantheirfairshareinthepubliccontractingarena.Anoft-citedreportproducedbytheUrbanInstitutein1997examinedstateandlocalgovernmentexpenditures–utilizingdozensofdisparitystudiesavailableatthetime–andfoundthatminorityfirmsreceivedfarfewergovernmentcontractdollarsthanwouldbeexpectedbasedontheiravailability.Infact,minoritybusinessesasagroupreceivedonly57centsofeverydollartheywouldhavebeenexpectedtoreceivefromgovernmentcontracting,basedontheirnumbersandavailability.Thistranslatedintoapotentialpoolofmorethan$20billioninadditionalcontractdollars.

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National Trends

Thefederalgovernment,moststatesandmanylargemunicipalitiesintheUnitedStateshaveprogramsdesignedtoencourageeconomicopportunitiesforminority-andwomen-ownedbusinessesthroughparticipationingovernmentprocurementofgoodsandservices.Althoughthestructuresofsuchprogramsvaryfromonestatetothenext,atleast30statescurrentlyhaveMWBEprograms.

Severalstateshaveconducteddisparitystudies–studieswhichexaminethedifferencebetweentheavailabilityofMWBEsandtheirutilizationingovernmentprocurement–similartoonerecentlycompletedforNewYorkState(seebelow).Generally,thesestudieshavefoundevidenceofcontinuingdiscriminationofminority-andwomen-ownedfirmsinthemarketplaceaswellasunderutilizationofsuchfirmsinstateprocurementactivities.Statelegislationrequiringdisparitystudiesoftenprovidesthatsuchstudiesbeconductedperiodically(forexample,everyfiveyears)toensuretheavailabilityoftimelyinformationuponwhichtoevaluateprograms.

ProgramsdesignedtoencouragetheeconomicgrowthofMWBEsinvariousstatesusuallyhavesomecommonelements,including:

• Administration–MWBEprogramsareusuallyadministeredbyastate’sdepartmentofadministrationorgeneralservices,wherecentralizedprocurementishandled.Occasionally,aprogramisadministeredbyastand-aloneagency(e.g.,VirginiaandSouthCarolina)orislocatedinthestate’scommercedepartmentoreconomicdevelopmentagency,asitisinNewYorkState.

• CertificationProcess–Proceduresusuallyrequirebusinessestofirstregisterwithastate’ssecretaryofstateordepartmentoftaxandfinancepriortoapplyingforMWBEcertification.Thecertificationprocessusuallyinvolvesalengthyapplicationform(oftensubmittedonline)tocollectinformationaboutafirm’sowner,productsandservices,finances,equipment,facilitiesandcontroloffunctions;supplementaldocumentstosubstantiateinformationrepresentedintheapplication;andascheduledsitevisittoverifyinformationandtoascertainthatthebusinessisunderthedailycontrolofaminorityorwomanowner.ManystatesrequireMWBEfirmstoverifyannuallythattheycontinuetomeettheeligibilitycriteriaoftheprogram,withoutresubmittingfulldocumentation.

•Reciprocity–MoststateMWBEprogramsprovideforreciprocaland/oracceleratedcertificationwithotherprograms.DualcertificationisusuallyprovidedforfirmscertifiedunderthefederalDisadvantagedBusinessEnterprise(DBE)programfortransportationcontractsfundedbytheU.S.DepartmentofTransportation.Inaddition,severalstateshavereciprocalcertificationprogramswithmunicipalitiesintheirjurisdictions(NewYork,IndianaandNewJersey),otherstatesintheirregions(Delaware,MarylandandVirginia)and/orstatewideandnationalminority/women’sprocurementorganizations.

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•DirectoryofCertifiedFirms–States,includingNewYork,usuallymaintaindirectoriesofcertifiedMWBEfirmstofacilitateagencysearchesofavailablevendors.Thesedirectoriesvaryintheireaseofuse,withthosebeingmostusefulthatincludecontactinformationandaresearchablebytypesofproductsorservices.

•DatabaseofContractOpportunities–Manystatesprovidecentralizeddatabasesofcontractopportunitieswhichincludespecificinformationaboutthegoodsandservicesthatagenciesareinterestedinprocuring.AlthoughNewYorkdoesnothaveacomprehensivecentralizeddatabase,theNewYorkStateContractReporterpublishesinformationonvariousprocurementopportunitieswithStateentities.Inaddition,theOfficeofGeneralServices(OGS)offersonlinevendorregistrationforbiddernotificationservicesregardingOGScontractopportunities.

•Outreach–StatesoftenprovideavarietyofoutreachservicestoencourageMWBEfirmstobecomecertified,includingworkshops,trainingeventsandtechnicalassistancewithcertificationapplications.

•Goals–Somestateshaveestablishedoverallgoals,agency-specificgoalsorgoalsbyproduct/servicetype(Indiana)forprocurementfromcertainfirms.StatewideMWBEgoalsvaryfrom10percent(PennsylvaniaandRhodeIsland)to40percent(Virginia)ofprocurementexpenditures.Severalstateshavegoalsforsmallbusinessenterprises(SBEs),regardlessofraceorgenderownership,rangingfrom10percent(Iowa)to25percent(NewJersey).TheNorthCarolinaDepartmentofTransportationhasasmallcontractorgoalof$2millionforeachofits14regionaldivisions.

•ComplianceMonitoring–MoststatesmonitorcompliancewithMWBEgoalsbyagenciesandprimecontractors.Theseeffortsattempttoensurethatcontractorsdonotdiscriminateintheiremploymentandsubcontractingbusinesspractices.

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Federal Government Programs

Thefederalgovernmenthasanumberofprogramstoassistsmallanddisadvantagedbusinesses(manyofwhichareownedbyminoritiesandwomen),including:

• 8(a)BusinessDevelopmentProgram–ThisprogramisadministeredbytheSmallBusinessAdministration(SBA)andisintendedtohelpsmallbusinessesownedbysociallyoreconomicallydisadvantagedindividualstoaccessthefederalprocurementmarketandlearnskillsforcontinuedbusinesssuccess.Theprogramprovidestechnicalassistancetoeligiblefirmsinastructuredprocessoveranine-yeartimeframewhichresultsinthe“graduation”ofsuccessfulfirms.Eligible8(a)participantbusinessescanreceivesole-sourcecontractsuptoaceilingof$3millionforgoodsandservices.Inaddition,federalprocurementpoliciesencouragefederalagenciestoawardapercentageoftheircontractsto8(a)businessesandrequirethatallfederalpurchasesabove$3,000butunder$100,000mustbereservedforsmallbusinesses.

•DisadvantagedBusinessEnterprise(DBE)Program–ThefederalDBEprogramcertifiesbusinessesownedbysociallyoreconomicallydisadvantagedindividualsthatwishtocompeteforfederallyfundedcontractsadministeredbytheU.S.DepartmentofTransportation.Manystates,includingNewYork,providedualcertificationtobusinessescertifiedbytheDBEprogram.TheDBEprogramhaseligibilityrequirementstoensurethatfirmswhichbenefitfromtheprogramareownedandcontrolledbysociallydisadvantagedindividualswhoarealsoeconomicallydisadvantaged–asevidencedbyhavingpersonalnetworthbelow$750,000–andthatthebusinessissmallaccordingtoSBAstandards.

Until2009,thefederalgovernmentalsohadaprogramthatcertifiedsmalldisadvantagedbusinessesforDepartmentofDefense(DOD)contracts.TheSmallDisadvantagedBusiness(SDB)Programsetanoverallgoalof5percentforDODcontractswithSDBsandauthorizedvariousrace-consciousmeasurestomeetthatgoal,includingprovidingbidpreferencesofupto10percentintheevaluationofcontractbidsfromSDBs.TheprogramwasstruckdownbytheFederalCircuitCourtofAppealsandwasdiscontinued.Thiscourtcaseaswellasothercourtdecisionshaveforcedpreferentialprocurementprogramstobemorenarrowlytailored.

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New York State MWBE Program

NewYorkStatefirstauthorizeditsMinority-andWomen-OwnedBusinessEnterprisesprogram(Article15-AoftheExecutiveLaw)inJuly1988topromoteequalityofeconomicopportunitiesforminoritiesandwomenandtoeliminatebarrierstotheirparticipationinStateprocurementactivities.TheprogramisadministeredwithinEmpireStateDevelopment(ESD)bytheDivisionofMinorityandWomen’sBusinessDevelopment,whichperformsthreemajorfunctions:toencourageandassistStateagenciestoawardafairshareofcontractstoMWBEs,tocertifyMWBEbusinessesandtopromotethedevelopmentofMWBEsthroughcapacitybuildingandoutreachefforts.

StateFinanceLawSection163(6)providesathresholdbelowwhichStateagenciesmaypurchasegoodsandservicesfromcertifiedMWBEfirmswithoutformalcompetitivebids.Thisthresholdwasraisedfrom$100,000to$200,000bytherecentlyenactedChapter173oftheLawsof2010.

StateAgencies.Article15-ArequiresStateagenciesandpublicauthoritiestoactivelypromotetheparticipationofMWBEsinStatecontractsandprocurementactivities.Specifically,Stateagenciesandauthoritiesmustestablishannualgoalsforparticipation(expressedasapercentageoftheagency’stotaldiscretionarycontractspendingfortheyear),makea“goodfaith”efforttoachievethesegoals,andreporttoESDonactuallevelsofMWBEparticipationinagencycontractsandexpenditures.ESDapprovesagencygoalplans,monitorscomplianceandcompilesreportsonutilization.

MWBECertification.ESDreviewsapplicationsbybusinessesanddetermineswhetherapplicantsmeetthestatutoryqualificationsforcertification,namelythat:• Businessesmustbeatleast51percentownedandcontrolledbyminoritiesorwomen;•Minorityand/orwomenownershipmustbereal,substantialandcontinuing;•Minorityand/orwomenownershipmusthaveandexercisetheauthoritytoindependentlycontrolday-to-daybusinessdecisions;

• Businessesmustbeindependentlyowned,operatedandauthorizedtodobusinessinNewYorkState;and

• Businessesgenerallymustbeinoperationforatleastoneyear.

Inaddition,ESDmaintainsadatabaseofcertifiedMWBEfirmswhichincludesproductandserviceindustrycodestoassistStateagencies,privatesectorcontractorsandthegeneralpublicintheutilizationofMWBEs.

OutreachandBusinessDevelopment.ESDconductsworkshopsandtrainingsessionsfor:(1)Stateagencies,topromotetheutilizationofMWBEsinStatecontracts,and(2)MWBEs,toprovideassistancewithcertificationandcontractopportunities.ESDalsoadministersprogramsandservicesthatpromotebusinessopportunitiesforMWBEs,suchasconferencesandvendorfairs,andfacilitatescapacitybuildingthroughpartnershipswithorganizationsthatofferin-depthtechnicalassistancetoMWBEsonvariousaspectsofmanagementandbusiness.

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New York State Disparity Study

AsrequiredbyArticle15-AoftheExecutiveLaw(Section312-a),ESDcommissionedastudyin2007toexaminetheparticipationofMWBEsinStatecontracts.ThepurposeofthestudywastodeterminewhetherthereisadisparitybetweenthenumberofqualifiedMWBEsready,willingandabletoperformStatecontractsandthenumberactuallyengagedtoperformsuchcontracts.RecentlyreleasedinApril2010,thestudy(knownasadisparitystudy)isintendedtoassisttheStateindeterminingwhetheritscurrentMWBEprogramisstillnecessarytoremedydiscriminationandtorefineexistingmeasuresand“narrowlytailor”anynewinitiativestothatremedy.

VariousU.S.SupremeCourtcaseshavemadeitclearthatinordertoimplementarace-orgender-basedprogramthatiseffective,enforceableandlegallydefensible,agovernmentmustmeetthetestof“strictscrutiny.”Strictscrutinyrequirescurrentstrongevidenceofthepersistenceofdiscriminationandanymeasuresadoptedtoremedythatdiscriminationmustbe“narrowlytailored”tothatevidence.

NewYork’sdisparitystudyconcludedthatMWBEsarepresentinsubstantiallylowernumbers,earnsubstantiallylessandaresubstantiallymorelikelytobedeniedaccesstocreditthanwouldbethecaseifthemarketoperatedinarace-andgender-neutralmanner.ThestudyfurtherfoundthatduringStatefiscalyears2004through2008,MWBEswereutilizedinStatecontractsatratesfarlowerthantheiravailabilitywouldindicate.Although29percentoffirmswereidentifiedasMWBEsinthestudy,only5percentofNewYork’sprocurementcontractdollarswerespentwithMWBEfirmsfrom2004through2008.Thestudyconcludedthatthestatisticalandanecdotalevidencesupportstheconclusionthattheseoutcomesaretheresultofdiscrimination.

New York State MWBE Performance Results and Audit Findings

SeveralpreviousauditsofNewYork’sMWBEprogramhavenotedimplementationproblemsbothattheagencylevelandwithESD’sadministrationoftheprogram.Between2001and2004,OSCundertookaseriesofauditswhichfoundthatwhiletheprogramhadgiventargetedbusinessesaccesstoopportunitiesthatmaynototherwisehavebeenavailabletothem,therewerepersistentproblemswithgoalsetting,programresults,reporting,programoversightandvendorcertification.

In2009,OSCtookaleadershiproleinaddressingtheseproblemsanddevelopedanewapproachtoexaminingtheState’sMWBEprogramtotrytohelpitsucceed.Thisapproachconcentratedonpromotingcommunicationandprovidingagencieswithmoreinformationaboutperformance;conductingfocusedauditsofprogramactivitiesandresultsattheagencylevel;andidentifyingbestpracticesandcommonobstaclesthataffectprogramsuccess.

Specifically,OSCgatheredinformationfromESDintheformofself-reportedagencydataonprogramgoalsandperformanceforthepastthreeyearsanddevelopedthisinformationintoanobjectively-orientedperformancemeasurementsystem.OSCsharedthisperformancedatawithagenciesandpromotedinteragencycomparisonsandcommunicationonagencyresults.

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OSC Best Practices

As a procurement agency itself, the Office of the State Comptroller fully supports the State’s MWBE program and has integrated its goals into the agency’s procurement processes and practices. Specifically, OSC:

• Places primary responsibility for MWBE participation in its Finance Office, where it has been incorporated into the procurement processes and culture of the agency;

• Makes a concerted effort to raise agency goals and increase MWBE participation in discretionary purchases, particularly in the procurement of office furniture, software products and miscellaneous services;

• Includes information on its website concerning policies and resources that can be used by MWBEs for opportunities in State procurement opportunities, including links to other State government websites;

• Produces and distributes the annual Directory of Frequently Purchased Commodities and Services by New York State Agencies (the 20th edition of this publication was released in January 2010);

• Supports and manages a telephone line for sharing information regarding technical support for MWBE best practices; and

• Hosts and attends various vendor fairs and workshops to facilitate MWBE participation in procurement activities.

The Comptroller has also demonstrated his commitment to MWBEs as sole custodian of State pension fund assets in the Common Retirement Fund (CRF). In February 2008, the Comptroller launched the Emerging Manager Program for the purpose of investing some of the CRF’s assets with small and upcoming firms, many of which are MWBEs, to support the development and expansion of such firms while earning attractive, risk-adjusted returns for the CRF. To date, OSC has committed to investing $1 billion in private equity and $600 million in domestic equities with emerging manager firms; in 2009-10 the Emerging Manager Program committed $160 million to MWBEs. The CRF also has a small business lending program which has provided loans of approximately $70 million (out of $200 million) to small MWBEs in the State.

The Comptroller has been at the forefront of advocating for improvements to the statewide MWBE program and has been recognized for his personal commitment and efforts to support MWBE firms. He has participated in various statewide activities, including the Governor’s MWBE Executive Leadership Council, and has provided constructive review and input, such as relevant comments on legislative proposals, to improve the statewide MWBE program.

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InAugust2009,OSCconductedanMWBEStateAuditReviewSession,incollaborationwithESD,forStateagencyfiscalofficersandpurchasingadministrators.Duringthissession,OSCreviewedagencyperformancedata,discussedmajorareasforauditreviewsandhighlightedtechnicalassistanceresourcesavailabletoagencies.Over100attendeesfrommorethan40differentagencieswererepresentedatthesessionandanadditional230peopleviewedarebroadcastofthesessionthefollowingday.

Sincethattime,OSChascontinuedtomonitoragencyperformancedataandhasconcludedthat,althoughtherehasbeenanincreaseinthedollaramountofMWBEcontractsoverthelastthreeyears,thepercentageutilizationofMWBEfirmshasbeenrelativelystagnant.FromStatefiscalyear2007-08to2009-10,utilizationofMWBEfirmsincreasedby$245millionfrom$560millionto$805million,anincreaseof44percent.

However,thisincreasemustbeviewedinlightoftotalagencydiscretionarycontractexpendituresduringthatperiod,whichincreasedby$1.5billionfrom$6.9billionto$8.4billion.Asaresult,thecombinedpercentageofMWBEutilizationincreasedonly1.5percentagepointsfrom8.1percentto9.6percentoftotalagencydiscretionarycontractexpenditures.

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Inaddition,OSCrecentlycompletedandreleasedfiveseparateauditreportsonthefollowingindividualagencies:theDivisionofStatePolice,theDepartmentofTaxandFinance,theOfficeofChildrenandFamilyServices(OCFS),theOfficeofTemporaryandDisabilityAssistance(OTDA)andtheOfficeforTechnology(OFT).AnauditoftheMetropolitanTransportationAuthority(MTA)isstillinprogress.

Asaresultoftheseefforts,continuingproblemshavebeenfoundwithESD’soversightoftheMWBEprogramandagencyresultsinthefollowingareas:

•Certification–TheMWBEcertificationprocessinNewYorkiscumbersomeandlengthy,oftentaking6monthstoayeartocomplete.Althoughnotrequired,somefirmshireattorneystocompileinformationandsubmitapplicationsforcertificationduetoitscomplexity.Iffilledoutonline,theapplicationmustbecompletedinorderandallatonce;anymissinginformationresultsinrejectionoftheapplication.SupplementaldocumentationmustbesubmittedandESDstaffreviewsandonsitevisitsareconductedtoensuretheaccuracyandveracityofinformation.ESDindicatesthatthereisacurrentbacklogofinitialapplicationreviewsof3to6months.

EligibleMWBEfirmsoftenquestionwhetherthecertificationprocessisworththeeffort,giventhattheonlytangiblebenefitofcertificationisinclusioninESD’sdirectoryofcertifiedMWBEfirmsandpotentialutilizationinState-fundedcontracts.

Asaresult,onlyafractionofeligibleMWBEfirmsinNewYorkareactuallycertifiedbyESD.TheNewYorkStatedisparitystudyexamined550,000businessesinNewYorkandidentified29percent–about160,000firms–asMWBEfirms.TheU.S.CensusBureau’sSurveyofBusinessOwnersindicatesthatmorethan420,000MBEsandmorethan500,000WBEswerecountedinNewYorkin2002.Incontrast,thedirectoryofMWBEfirmscertifiedbyESDcurrentlyincludesonly8,350firms.Furthermore,thenumberofcertifiedMWBEfirmshasnotincreasedsignificantlysince1989,when4,800MWBEswerecertifiedinNewYork.Thismeansthatanaverageofonly170firmsperyearhasbeenaddedtothelistofcertifiedMWBEsoverthelast21years.

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•GoalSetting–TargetgoalsforMWBEutilizationinStatecontractsandexpendituresareagency-specific,annuallydevelopedbyindividualagenciesandsubmittedtoESDforreviewandapproval.Thesegoalsarebasedon“discretionary”agencyexpenditures,thatis,expendituresforgoodsandservicesoverwhichtheagencyhassomecontrolandcanmakeprocurementdecisionswhichresultincontractswithMWBEfirms.Thereareseveralaspectsofthisprocessthatareproblematic:

•Comparability.Althoughthereiscentralguidanceonwhichexpendituresareconsidereddiscretionary,agencieshavewidediscretiontointerpretthatguidance,resultingingoalsandutilizationpercentageswhicharenotgenerallycomparablebetweenagencies.Sometimesagencieschangetheirexpenditurebasesfromoneperiodtothenext,resultinginnon-comparableoutcomeswithinanindividualagency.Forexample,theOfficeforTechnologyreduceditsreporteddiscretionaryexpenditurebaseby95percentfrom$57.5millioninthethirdquarterof2009-10to$3.3millioninthefourthquarter.ThischangeresultedinanincreaseinOFT’sreportedMWBEparticipationratefrom1.1percentto14.1percentwhileactualMWBEexpendituresdropped.

• LowGoals.About60percentofStateagencies(51outof85agencies)settheirMBEgoalsat5percentorlessofdiscretionaryexpendituresin2009-10,withmorethanhalfofthoseagencies(26agencies)settinggoalsof1percentorless.Similarly,72percentofStateagencies(61outof85agencies)settheirWBEgoalsat5percentorlessin2009-10.Eventhehighergoalsestablishedbysomeagenciesmustbeviewedinlightofthefractionoftotalexpenditureswhichdiscretionaryexpendituresrepresent.Forexample,althoughOCFSsetacombinedMWBEgoalof12percentfor2009-10,thatgoalwasbasedonaverysmallpoolofeligiblediscretionarycoststotalingabout$11.9million,orlessthan1percentofOCFS’$3.5billionannualnon-personalservicesexpenditures.

•GoalPlans.SomeagenciesdonotregularlyfilegoalplanswithESD(OFT),whileothersdonothaveadequatebasestosupportthattheirgoalsarereasonableandattainable(OTDA).Furthermore,ESDdoesnothaveadequatemeanstoensurethatgoalplansarefiledandsupportablewithobjectivedata.

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• PerformanceTracking–Duetotheissueswithgoalsetting,itisdifficulttodetermineifagenciesaresettingrealisticandattainablegoalsandmakinggoodfaitheffortstoreachthosegoals.Managementneedstohavedatasystemsthatprovidecomplete,accurateandreliableinformationtofacilitatemonitoringanddecisionmaking.Issuesandproblemswereidentifiedinthisaspectofprogramcomplianceasfollows:

•Reporting.ReportinganddataaccuracyonMWBEutilizationvariesbyagency,withsomeagenciesadequatelytracking,verifyingandreportinginformation(StatePoliceandOTDA).However,otheragencieswereregularlydeficientinreportingordocumentingrequiredinformation;auditscitedagenciesfornotcollectingrequiredcontractorcompliancereports(OFT),notfilingrequiredutilizationreports(OCFS),andnotprovidingadequatesupportingdocumentationforreporteddiscretionaryexpenditures(TaxandFinance).Althoughawareofthesemissingreports,ESDdidnottakeactiontoenforcecompliance.

Furthermore,auditshaveshownthatMWBEsubcontractingexpenditureswereoftennotreportedbyeitherprimecontractorsornot-for-profitorganizationsthathiredthem.Althoughnot-for-profitsarenotrequiredtoreportthisinformation,agenciescanincludesuchexpendituresinmeasuringactualMWBEutilization.

•Utilization.ActualutilizationofMWBEfirmsvariesbyagency,butmostagenciesfallshortofmeetingtheirestablishedgoals.Infact,morethantwo-thirds(60agencies,or70percent)ofStateagenciesmetlessthan70percentoftheirMBEgoalsin2009-10,whilemorethanhalf(49agencies,or58percent)metlessthan70percentoftheirWBEgoals.Theseoutcomesaretroubling,especiallygiventhatagencygoalsaresetlowandareoftenbasedononlyasmallportionofoverallexpenditures.

60

4

21

MBE Goal Attainment FY 09-10 Number of Agencies

49

7

29

WBE Goal Attainment FY 09-10 Number of Agencies

100% or More of Goal Achieved 70% - 99% of Goal Achieved Less than 70% of Goal Achieved

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•CommunicationandOutreach–AgenciesareexpectedtohelpexistingvendorswithMWBEprogramcertificationifeligible,toseekoutnewqualifyingvendorsforpotentialcertificationandtoencouragecertifiedvendorstocompeteforprocurementopportunities.Issuesidentifiedinthisaspectoftheprograminclude:

• AgencyOutreachEfforts.Agencyeffortstoidentifypotentiallyeligiblevendorsarevaried,withsomeagenciesdoingabetterjobwithoutreachthanothers.Forexample,OFThasmadesignificanteffortstoincreaseawarenessandpromoteparticipationintheState’sMWBEprogram,includinghostingvariousMWBE-focusedevents,providingextensiveinformationforMWBEsonitswebsiteandmaintainingacomprehensivelistofMWBEvendorsthatitmakesavailabletoITcompanieslookingtoformpartnershipswithMWBEs.Otheragenciesneedtoimprovetheiroutreachefforts,havingfewifanysystemsinplacetoidentifynewlycertifiedvendorsorhelpqualifiedvendorswithcertification(OCFSandOTDA).

• ProcurementOpportunities.OSCannuallypublishesaDirectoryofFrequentlyPurchasedCommoditiesandServicesbyNewYorkStateAgencieswhichprovidesrangesofagencyexpendituresforvarioustypesofexpenditureswithincategories,suchassupplies,equipmentandinformationtechnology.However,thereiscurrentlynocomprehensivestatewidedatabaseofprocurementopportunitiesthatMWBEfirmscanusetoidentifyspecificpurchasesofgoodsandservicesforwhichtheycancompete.

• VendorAwareness.TheNewYorkStatedisparitystudyindicatedthatmanypotentialMWBEfirmsdonotknowhowtobecomecertifiedorwhattypesofopportunitiesexistfortheminthepublicsector.TheybelievethatbothESDandindividualagenciescandoabetteroutreachjobthroughvendorfairsandothermeanstoprovidethisinformationtopotentialfirms.

•MWBEDirectory.ESD’sdirectoryofcertifiedMWBEfirmsdoesnotcontainlinkstovendorwebsiteswhichagenciesandprivatesectorfirmscouldusewhenseekingqualifiedfirmsforspecificpurchasesofgoodsorservices.Inaddition,manyoftheemailaddressesincludedinthedirectoryarenon-functioning,makingitdifficulttocontactfirmsdirectly.

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Recommendations to Consider

BasedonvariousU.S.SupremeCourtdecisions,thestatisticalandanecdotalevidencepresentedintheNewYorkStatedisparitystudyandthebestpracticesidentifiedinnumerousgovernmentalMWBEprograms,thereareseveralrecommendationsthatshouldbeconsideredtoimproveNewYork’sMWBEprogramandaddresstheshortcomingsfoundinitsperformancedataandOSC’srecentlycompletedaudits.WhilesomeoftheserecommendationswerepartiallyaddressedinStatelegislationenactedinJuly2010(Chapters173,174and175oftheLawsof2010),someotherscanbeimplementedadministrativelywithoutlegislativechange.

Theserecommendationsfocusonatwo-prongedapproachwhichseeksfirsttostrengthentheState’srace-andgender-neutralinitiativestoimproveeconomicopportunitiesforallsmallbusinesses,andthentonarrowlytailorrace-andgender-basedinitiativestoremedyanyremainingimbalancesineconomicopportunities.AlloftheserecommendationsareconsistentwithrecommendationsadvancedintheNewYorkStatedisparitystudyandwithnationalbestpractices,andcanbesummarizedasfollows:

• Race-andGender-NeutralInitiatives

•AdoptaSmallBusinessTargetMarketProgram.TheStateshouldconsideradoptingaprogramtargetedtosmallbusinessfirmsseekingtoworkasprimecontractorsorconsultantsfortheState.Contractssubjecttothisprogramwouldbereservedforbiddingsolelybysuchfirms.Thisapproachwouldpermitsmallfirmstocompeteonamorelevelplayingfieldwithfirmsofcomparablesize,therebyequalizingsomeofthebarriersfacedbyMWBEssuchasobtainingbonding,financingandaccessingbusinessnetworks,withoutresortingtorace-andgender-basedpreferencesthatmightnotwithstandlegalchallenge.ThisshouldalsoreducetheState’srelianceonrace-andgender-conscioussubcontractinggoalstomeetoverallannualMWBEgoals.

Programelementsshouldincludeeligibilitycriteriaforparticipation,includinglimitingthesizeofafirm(usuallybasedonthenumberofemployeesortheamountofannualrevenue),itslocation,thesizeofcontractstobeincludedandthetypeofworktobeperformed.

Manyothergovernmentscurrentlyhaveprogramswhichsetasidepercentagesorlevelsofcontractswhichareonlyavailabletocertainfirms,usuallysmallbusinesses.Forexample,thefederalgovernmentsetsasideallpurchasesabove$3,000butunder$100,000forsmallbusinesses.

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•ExpandProgramstoIncreaseAccesstoCapital.IncreasedaccesstocapitalisfundamentaltoensuringequalopportunitiesforbusinessestocompeteforStatecontracts.AllthestatisticalandanecdotalevidenceincludedintheNewYorkStatedisparitystudysupportedtheconclusionthatminoritiesandwomencontinuetofacebarrierstofinancingandgrowingtheirbusinessesinpartbecauseofraceorgenderdiscrimination.

ESDcurrentlyoperatesaCapitalAccessPilotProgram,incollaborationwiththeNewYorkBusinessDevelopmentCorporation,toprovidecapitalinconnectionwithspecificcontracts.Inaddition,theCommonRetirementFundhasasmallbusinesslendingprogram;todateapproximately$70millionofthe$200millioninloanscompletedhavebeenmadetoMWBEfirms.Theseprogramscouldbeexpandedtoprovidemorecapitaltosmallbusinessesthroughexistingavenues.

AnotherwayofexpandingaccesstocapitalwouldbetomakeloansavailabletoSBEsatfavorableinterestratesonlinesofcreditatparticipatinglendinginstitutions,usingtheirStatecontractsascollateral.

• IncreaseContractUnbundling.ItisbelievedthatthesizeandcomplexityoftheState’scontractsaremajorimpedimentstosmallfirms(includingMWBEs)obtainingworkasprimecontractorsonStateprojects.Unbundlingcontracts–breakingthemintosmaller,moremanageablepieces–isviewedasonemethodtoincreaseaccesstoStateprojectsbysmallerbusinesses.Smallercontractsshouldpermitfirmstomovefromquotingsolelyassubcontractorstobiddingasprimecontractors.However,unbundlingmustbeconsideredcarefullyinlightofpotentiallyhigherStatecostswhichcanbeassociatedwithcoordinatingseveralsmallercontractsratherthanonecomprehensivecontract(e.g.,constructionprojects).

• ImplementtheBusinessMentor-ProtégéProgramStatute.TheStateLegislaturerecentlyamendedStateFinanceLaw(Section147)torequireeveryagencythatawardsmorethan$10millioninprojectsintheprioryeartoimplementabusinessmentor-protégéprogram.Mentor-protégépartnershipsareusuallybasedonwrittendevelopmentplanswhichclearlysetforththeobjectivesandrolesforbothfirms.Generally,mentorsprovideprotégéswithassistancewithfinancing,managementandtechnicaladvice.Protégésshouldbeviablefirmswhichareinalineofworkthatissimilartothementorfirm’sbusinessoroneofitscomponents.Throughthesepartnerships,mentorsreceivecredittowardMWBEgoalsandprotégésgaingreateraccesstocontractsandincreasedopportunitiestogrowintoprimecontractors.

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• IncreaseVendorCommunicationandOutreach.Ownersofalltypesoffirmshavereporteddifficultiesinaccessinginformationaboutparticularcontractopportunities,aswellasStatecontractingpoliciesandprocedures.TheStateshouldconsiderwaystomakeiteasierforbusinessestosearchforrelevantcontractingopportunitieswithouthavingtocontactindividualagencies.Manystatesprovidecentralizeddatabasesofcontractopportunitieswhichincludespecificinformationaboutthegoodsandservicesthatagenciesareinterestedinprocuring.NewYorkneedssimilar“one-stopshopping”access.

Otherspecificsuggestionsincludeconductingregularvendorfairs,holdingbusinessseminarsfornewlycertifiedfirms,creatingadatabaseofbusinessprofilesthatdescribesthekeyproductsandservicesfromMWBEfirms,simplifyingandcoordinatinginformationonStatepoliciesandprocedures,andpostingpaymentstoprimecontractorsonagencywebsites.

Inaddition,communicationwithvendorscouldbeimprovedbyforminggroupsofStateagencieswithsimilarprocurementneedstoencourageinformationsharingandvendorcontacts.SuchasharedservicesapproachtoMWBEandsmallbusinessprocurementcouldhelpspreadbestpracticesandimprovevendoraccess.

• AnalyzeSystemstoEnhancetheAvailabilityofRelevantData.NotallStatecontractrecordscontainalltheinformationnecessaryforefficientandcomprehensivemonitoringofMWBEactivity.Thissituationcouldbegreatlyimprovedthroughananalysisandreviewofdatasystems,andincreasedtrainingandguidanceforStateagencycontractingandpurchasingpersonnel.SucheffortswouldenhancethequalityofrelevantdataavailablefortheState’snextdisparitystudy.

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• Race-andGender-ConsciousPoliciesandProcedures

•AdoptNarrowlyTailoredProgramEligibilityStandards.Currentlytherearenosize,locationorwealthstandardsplacedonbusinessesandtheirownerswhichparticipateintheState’sMWBEprogram.Firmsmaybeofanysizeandlocatedanywhere,andownersarenotrequiredtobeeconomicallydisadvantaged.InordertoensurethatNewYork’sprogramislegallydefensible,theStateshouldconsideradoptingnarrowlytailoredprogrameligibilitystandards,possiblylinkedtothefederalDBEprogram’seligibilityrequirements,including:

• Limitationonthesizeofabusiness,whichcanbebasedonthenumberofemployeesorannualrevenuesandcanvarybyindustrytype;

• Limitationonthepersonalnetworthofbusinessowners;forexample,alimitof$750,000isusedbytheDBEprogram;and

•RequirementthatbusinessesbelocatedwithinNewYork.

Chapter175oftheLawsof2010enactedinJuly2010amendedthedefinitionsofMBEandWBEincludedinArticle15-Atorestrictsuchenterprisestosmallbusinessesandtolimittheirownershiptoindividualswhosenetworthdoesnotexceed$3.5million,adjustedannuallyforinflation.Theseamendmentsbecomeeffective90daysafterenactmentinOctober2010.

• AdoptOverallAnnualMWBEAgencyGoals.Agencygoal-settingshouldbestandardized,takingintoconsiderationthefollowing:

•Clarificationofguidanceonagencyexpenditurebasestoensureconsistencybetweenandwithinagencies;

• AvailabilityofMWBEfirmsbyindustryandgeographicmarketplaceasreflectedintheStatedisparitystudy;

•DeterminationofpotentialMWBEavailabilitythatwouldbepresentinadiscrimination-freemarketplace;and

•Developmentofmultiyearplanstomoveagenciestowardlong-termprocurementgoals.

Chapter175oftheLawsof2010establishesstatewidegoalsandrequiresagenciestoestablishagency-specificgoalsforcontractingwithcertifiedMWBEsbasedonthe2010disparitystudy.

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•ExpandUseofContractGoals.TheStateshouldconsiderexpandingMWBEgoalstoallcontractswithsignificantsubcontractingopportunities,includingcentralizedStatecontractsadministeredbytheOfficeofGeneralServicesandcontractswithnot-for-profits.

• AdoptUniformStandardsforDemonstratingGoodFaithEfforts.UniformstandardsfordemonstratinggoodfaitheffortsshouldbeappliedtoprimecontractorsseekingtoutilizeMWBEs,includingstandardproceduresforobtainingwaivers.Thecurrentlackofstandardizationcreatesconfusion,errorsandresentmentamonginterestedfirms.

•EnhanceReportingbyStateAgenciesandESD.AgenciesshouldberequiredtoreportatleastannuallyregardingtheircompliancewiththeprovisionsofArticle15-A,andESDshouldannuallycompileareporttosummarizeandcompareagencyresults.Suchreportswouldincreasethetransparencyofagencyprocurementoperationsandpromotecompliance.

Chapter175addsrequirementsforannualagencyreportsandESDsummaryreports,aswellasnewrequirementsforagencieswhichfailtomeettheiragency-specificgoalstodevelopremedialactionplanstoaddresshowsuchgoalswouldbemetinthefuture.

• StreamlinetheCertificationProcess.Manystates,includingNewYork,currentlyuselengthycertificationapplicationsandprocessestoensuretheeligibilityofMWBEfirms.However,NewYork’sprocessinvolvesaparticularlylengthyapprovalprocessthatshouldbereviewedforpotentialstreamlining.Althoughitisimportanttoavoidcertificationofineligiblefirms,aprotractedandoverlycomplexapprovalprocessdoesnoteffectivelyservelegitimateMWBEfirmswhicharediscouragedfromparticipatingduetothecomplexityoftheprocess.

Specificsuggestionshavebeenmadeaboutwaystoimprovetheprocess,includingallowingforpartialonlinecompletionofapplicationswhichwouldpermitsavingenteredinformationandreturningatalatertimetocompletetheapplication.Considerationcouldalsobegiventoa“post-audit”approachtocertification,whichwouldrelyontargetedreviewsofasamplingoffirmstoprovideassuranceofthevalidityofinformationprovidedoncertificationapplications.

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•EncourageExecutiveandAgencyCommitment.Experiencehasshownthataprogram’ssuccessishighlydependentonthecommitmentofitsleadership.Chapter175createsanewstatewidepositionofChiefDiversityOfficer,whowillbeappointedbytheGovernortoprovideadviceonpoliciesrelatingtoworkforcediversityandMWBEs,andwhowillserveontheNewYorkStateProcurementCouncil.

EachNewYorkStateagencyshouldbeencouragedtoplaceresponsibilityforitsMWBEprograminitsfinanceoffice,whereprogramprioritiescanbeintegratedintotheprocurementprocessesoftheagency,andrequireagencystafftoparticipateinannualtrainingonMWBEutilization.

Finally,theprogramwouldbenefitfromspecificconnectionstoOGSwherecentralprocurementishandledfortheState.

• IncreaseMonitoringofContractPerformance.AftercontractswithMWBEcommitmentshavebeenawarded,itisessentialthatthosecommitmentsaremonitoredandthatsanctionsfornoncomplianceareavailable,includingprohibitionsonunauthorizedsubstitutionsofsubcontractors.ThiswouldstrengthencomplianceandhelperasetheperceptionamongMWBEfirmsthattheStatedoesnottakeitsprogramseriously.

Chapter175providesforenhancedpenaltiesforcontractorsthatwillfullyorintentionallydisregardtheirresponsibilitiestoutilizeMWBEfirms.

Conclusion

AsNewYorkStatestrugglestomeetthechallengesofitscurrentfiscalcrisis,StatepolicymakersmustfindwaystoencouragegrowthinvarioussectorsoftheState’seconomytoensurethelong-termfiscalhealthoftheState.Smallbusinesses–includingthoseownedbyminoritiesandwomen–areavitalpartofthateconomy.Morethan400,000smallbusinessesintheStateemploynearly4millionNewYorkers,makeannualpayrollsinexcessof$130billionandgeneraterevenuesofnearly$700billioneachyear.SupportingsmallbusinessesinNewYorkisgoodeconomicpolicyaswellasgoodsocialpolicy.NewYorkcanhelpthesebusinessescontinuetogrowbyremovingimpedimentstotheirparticipationintheStateprocurementprocessandbycreatinganatmospherethatfostershealthycompetitionandefficiency.TherecommendationsincludedinthisreportcanhelpstrengthenandimprovetheState’scurrentMWBEprogramandultimatelyaccomplishboththesegoals.

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CityofNewYork,OfficeoftheComptroller,BureauofManagementAudit,Audit Report on the Administration of The Minority- and Women-owned Business Enterprise Program by the Department of Small Business Services,ReportMD09-062A,October8,2009.

MinorityandWomenOwnedBusinessEnterpriseExecutiveLeadershipCouncil,reportpresentedtoGovernorEliotSpitzerandLieutenantGovernorDavidPaterson,December18,2007.

NationalConferenceofStateLegislatures(NCSL),Minority Business Development – State MBE Certification,postedFebruary22,2008.

NCSL,Minority-Owned Business Development,June/July2004.

NCSL,Promoting Economic Development in Vulnerable Communities,May2003.

NERAEconomicConsulting,The State of Minority- and Women-Owned Business Enterprise: Evidence from New York,preparedfortheNewYorkStateDepartmentofEconomicDevelopment,April29,2010.

NewYorkLawJournal,MunicipalLawbyJeffreyD.Friedlander,Promoting Participation by Minorities, Women in City Contracts,July24,2006.

NewYorkStateDivisionofMinorityandWomen’sBusinessDevelopment,AnnualReport,2008.

NewYorkStateOfficeoftheStateComptroller(NYSOSC),Directory of Frequently Purchased Commodities and Services by New York State Agencies,January2010.

NYSOSC,M/WBEState Audit Review Session: A Review of M/WBE Performance Data, Major Areas for Audit Review, and Technical Assistance Resources Available for State Agency Fiscal Officers and Purchasing Administrators,August4,2009.

NYSOSC,DivisionofStateGovernmentAccountability,New York State Department of Taxation and Finance: Minority and Women’s Business Enterprise Reporting,Report2009-S-82.

NYSOSC,DivisionofStateGovernmentAccountability,New York State Division of State Police: Minority and Women’s Business Enterprise Reporting,Report2009-S-81.

NYSOSC,DivisionofStateGovernmentAccountability,New York State Office for Technolog y: Minority and Women’s Business Enterprise Reporting,Report2009-S-104.

NYSOSC,DivisionofStateGovernmentAccountability,New York State Office of Children and Family Services: Minority and Women’s Business Enterprise Reporting,Report2009-S-105.

NYSOSC,DivisionofStateGovernmentAccountability,New York State Office of Temporary and Disability Assistance: Minority and Women’s Business Enterprise Reporting,Report2009-S-106.

NYSOSC,DivisionofStateServices,New York State Department of Economic Development: Participation by Minority and Women-Owned Business Enterprises in State Contracts,Report2002-S-55.

NewYorkStateProcurementCouncil,New York State Procurement Guidelines,July2009.

Stateline,States Look Beyond Quotas to Promote Minority Firms,www.stateline.org,January11,2005.

TheUrbanInstitute,Do Minority-Owned Businesses Get a Fair Share of Government Contracts?,December1,1997.

U.S.CensusBureau,AmericanFactfinder,June16,2010.

U.S.CensusBureau,SurveyofBusinessOwners(SBO),2002.

Websitesofvariousstatesandthefederalgovernment(includingtheSmallBusinessAdministrationwww.sba.gov).

Sources

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Officeof theStateComptrollerDivisionof StateGovernmentAccountability

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