NYCHA Will Require More Minority and Women Business Participation in its Contracts

As part of its efforts to maximize the participation of Minority- and Women-owned Business Enterprises (M/WBE) in the Authority’s procurement, starting July 1, 2021, NYCHA implemented a mandatory 30 percent M/WBE subcontracting goal. This means that all vendors who want to bid on a NYCHA contract will be required to subcontract 30 percent of that work to City-certified M/WBEs (15 percent to minority and 15 percent to women-owned businesses).

NYCHA’s Chair and Chief Executive Officer Greg Russ said that the Authority is committed to maximizing M/WBE participation at all levels of procurement.

“NYCHA is committed to increasing M/WBE participation,” Chair Russ noted. “One of the most effective measures of achieving this is the increased M/WBE participation policy as part of our Transformation Plan goals.”

New York City government has pledged to award $20 billion in contracts to M/WBEs by 2025. NYCHA contributes significantly to this target as it repairs and preserves public housing. The Authority is currently the third largest contributor for contract awards to M/WBEs in the city and has awarded more than $2.8 billion of its contracts to M/WBEs.

“Recognizing the opportunity to further NYCHA’s social policy goals and values, we implemented a mandatory M/WBE goals program requiring contractors to subcontract with M/WBEs,” explained NYCHA’s Chief Procurement Officer Sergio Paneque.  “This mandatory requirement moves the M/WBE program from a vendor’s choice to one that requires a clear contractual commitment.”

“Creating a diverse vendor pool will benefit the way we operate and serve our residents,” said NYCHA’s Chief Diversity Officer and Senior Vice President of Supply Management and Procurement Shin Kim. “This is instrumental in implementing our new values set and culture shift as called for in NYCHA’s Transformation Plan.”

Ester Tomicic Hines, Director of NYCHA’s Vendor Integrity and Supplier Diversity Department, said that along with its new requirement, NYCHA is working on creating business opportunities for its residents: “NYCHA now requires M/WBE utilization plans from vendors when proposals are submitted. Along with our partners in NYCHA’s Office of Resident Economic Empowerment & Sustainability (REES), we are developing training and working to increase contracting opportunities for NYCHA resident-owned businesses certified as M/WBEs. We will also be working with NYCHA programs to monitor and ensure vendor compliance.”

With the new increased M/WBE participation policy, NYCHA aims not only to diversify its contracting pool but also to create opportunities for its residents who own businesses and meet the new requirement. To learn more about resident-owned M/WBE opportunities visit NYCHA’s website.

Currently, NYCHA’s Office of Resident Economic Empowerment & Sustainability (REES) works with two Zone Partners – the Business Outreach Center Network (BOCNet) and NYC Business Solutions (under NYC Small Business Services) – that help resident business owners obtain their New York City and New York State M/WBE certification.  These organizations offer general workshops on the M/WBE process, and residents can also request a one-on-one session with a business coach for individual support.

Additionally, REES is launching a new Business Pathways entrepreneurship track, Construction Business Pathways, which will provide accelerated business development training to NYCHA residents looking to start or grow their construction business. Residents interested in these opportunities should visit http://opportunitynycha.org/ or call REES at (718) 289-3100.

Photo Caption: MWBE Procurement Fair at Johnson Houses Community Center, May 2019