BILL NUMBER: S9869
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to authorizing
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 as an available remedy to a
demonstrated disparity
 
PURPOSE OR GENERAL IDEA OF BILL:
To ensure MWBE certified businesses can compete for local procurement
opportunities.
 
SUMMARY OF SPECIFIC PROVISIONS:
Amends Section 104-a of the general municipal law to provide that when
purchasing goods, services or construction for public use on contracts
less than one million a municipality may award the contract as reason-
ably competitive when (1) a study has found that there is or has been a
disparity between the availability and the utilization of MWBEs in the
award of contracts by such political subdivision or district therein;
and (2) the bid does not exceed the lowest bid by more than ten percent.
 
JUSTIFICATION:
Many MWBEs are losing contracts by very small margins (a few percentage
points). Though localities like the City of New York, which have
increased its certified MWBE firms by over 40% from December 2006 to
December 2007, the number of firms who win contracts remain very low,
despite the goals set forth in NYC Local law 129 and the goals and
utilization plans set forth by the individual agencies. Due to Genera
Municipal Law .5 103, localities cannot require agencies to award
contracts to anyone but a lowest responsible bidder. This constrains
localities from developing a stronger program that might result in more
contract awards to certified MWBEs.
As many MWBEs are losing bids by very narrow margins, legislation that
would allow the localities to give certified firms a small price prefer-
ence could help address this problem. State Finance law § 165(3) (b)
(i)already allows for such a price preference for the state purchase of
recycled goods (state agencies may purchase recycled commodities at a
cost premium not to exceed ten percent of what a non-recycled commodity
would cost or not to exceed 15% for commodities with over 50% secondary
materials generated from NY waste stream). Legislation that mirrors STF
§ 165, would allow municipalities to give certified MWBEs a small price
preference òwhen awarding qualifying contracts.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: A07496; referred to governmental operations
2019-20: A10263; referred to governmental operations
 
FISCAL IMPLICATIONS:
None to the State; local impact would depend on how the law is imple-
mented by a municipality.
 
EFFECTIVE DATE:
This act shall take effect on the 30th day after becoming law.

Statutes affected:
S9869: 104-a general municipal law