Activists Call on de Blasio to Follow Cuomo's Lead on MWBEs

Minority activists called on New York City Mayor Bill de Blasio to increase the city’s procurement with minority- and women-owned businesses (MWBEs), in part, by following Gov. Andrew Cuomo’s lead.

Flanked by elected officials and minority business leaders, Working Families Party co-founder Bertha Lewis released a report Tuesday showing nearly 4 percent of city contracts went to MWBEs last year, compared to the state’s rate of more than 25 percent. The study urged the city and state to aim to do 35 percent of their procurement with MWBEs, however, several on the steps of City Hall said the city should match the state’s goal of 30 percent and hire a chief diversity officer, as Cuomo did in 2013.

“If the state is saying we need to get 30 percent, on the federal level we’re pushing towards 30 percent, we need to be assessing things here in the city as well,” Bronx Assemblyman Michael Blake said. “Five percent, 7 percent, whatever the numbers somebody may be saying—the reality is, it is not enough.”

Blake and New York City Public Advocate Letita James stressed that they respected de Blasio’s legal counsel Maya Wiley, who was tapped to improve the city’s MWBE record, but would like to see a chief diversity officer take the reins.

“The city of New York needs a chief diversity officer solely focused on the issue of increasing opportunities for businesses of color, period,” James said. “3.9 percent is unacceptable and it sends the message that businesses of color need not apply.” 

As a candidate, de Blasio said at a City & State panel that his predecessor Michael Bloomberg was not “serious” about the issue and he intended to do better. His campaign website said the mayor would “empower a deputy mayor with the responsibility of increasing diversity in city contracts and procurement.”

De Blasio spokeswoman Ishanee Parikh pointed out that the city spent $690 million on contracts with MWBE last year—more than the $529 million spent when contracts with MWBEs accounted for 5 percent of city contracts under Bloomberg in fiscal year 2012.

“This administration is committed to increasing city contracts to minority- and women-owned business enterprises, and we’ve already seen a 57 percent increase in the past fiscal year—that’s millions of dollars more to our city’s MWBE businesses,” Parikh said in a statement.

She said in addition to Wiley, Lisette Camilo, the director of the Mayor’s Office of Contract Services, and the Small Business Services Commissioner Maria Torres-Springer are working to get more contracts with MWBEs.  But Parikh did not respond to a question about how the administration’s goals compare to the 30 figure floated by advocates. She did point out the city is mandated by state law to choose the lowest bidder or best proposer for prime contracts. 

City Councilman Robert Cornegy did point out that the city has issued a request for proposals, to hire a firm to study disparities in the city’s business with MWBE’s. Responses are expected this week.  

But advocates said the city does not need to wait on the study to stop giving tax breaks, zoning variances and other benefits to developers that don’t commit to using at least 30 percent of MWBEs in construction. Rev. Johnnie Green, pastor of Mt. Neboh Baptist Church in Harlem and president and CEO of Mobilizing Preachers and Communities, said his church coalition has had meetings with Cuomo on MWBE contracting, but has not gotten the same response from de Blasio.

“When you make promises to us at election season and election time, we are demanding that you keep those promises. You forget us now, I assure you, that we will forget you at election time,” he said.

The report also called for extending the MWBE program beyond the existing 34 city agencies to all 72 agencies, authorities and commissions, more prompt payments to subcontractors and using 1 percent of the pension fund to offer MWBEs loans, grants and other assistance.

Lewis, now president of the Black Institute public policy group, said she informed the administration about the report, but did not get feedback. She said she still supports the mayor, but believes he must do more.

“The most progressive City Council, the most progressive mayor—if you’re not going to get it done, when are you?” she said. “If you do the right thing, we got your back. But if you don’t we’re going to run up on you.”