New York City’s Minority and Women-owned Business Enterprise (M/WBE) program continues to underperform, according to the Comptroller’s annual review of city contracting for Fiscal Year 2025. The report reveals that just 5% ($2.4 billion out of $46 billion) of city contracts were awarded to M/WBEs, marking a decline from the previous year and reflecting ongoing challenges in expanding access to government procurement.
The number of certified M/WBEs with new contracts remained largely unchanged at 22%, while the total spending on M/WBE contracts rose to $1.48 billion, a record amount, yet this only represents 8.4% of contracts subject to participation goals—down from 17% in FY24. The average value of contracts awarded to M/WBEs was approximately $754,000, nearly five times smaller than the average for non-certified firms.
In remarks to LittleAfrica News, Comptroller Mark Levine emphasized the broader implications of these trends, saying, “The distribution of businesses to which New York City awards contracts should reflect the strength of our diversity – but the City has a lot more work to do to achieve this goal. If we address these issues at their core, the City can boost access to opportunity and offer support to businesses that have been excluded from these processes for far too long.”
The report highlighted additional disparities within the program, noting that Asian American women-owned businesses, Black M/WBEs, Hispanic American M/WBEs, and Native American M/WBEs each received just 1% of the contract value subject to participation goals. Subcontracting data was also insufficient, with records captured for only 9% of eligible contracts, limiting oversight and transparency.
To address these issues, the Comptroller recommended streamlining certification and procurement processes, expanding the pool of M/WBEs to match city purchasing needs, shortening contract timelines, improving subcontractor tracking, and proactively managing recertifications. The report underscores that, while some progress has been made in recent years, much work remains to ensure equitable access for minority- and women-owned businesses.
