Authorizes political subdivisions to award public contracts to participants of a MWBE program at a cost premium not to exceed ten percent of the lowest bid

◆ The sponsor's argument

Why James Sanders Jr. says this is needed

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.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.