1. Demystifying Article 15A – MWBE Requirements
Paul J. Brennan, CPPO
Director of Purchasing
Rockland County
NIGP Treasurer
New York State Association of Municipal Purchasing Officials

2. What We’ll Cover Today What is Article 15-A of the Executive Law
What is the definition of a contract
Which contracts require MWBE participation
What are MWBE targets and how are they calculated
What are Good Faith Efforts and What happens if a MWBE goal cannot be met
What Forms are needed to be compliant
Ongoing reporting requirements
How do these requirements “blend” with General Municipal Law
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3. What does MWBE stand for
Minority and/or Women-owned Business Enterprise
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4. What is Article 15-A of the Executive Law
The purpose of Article 15-A is to ensure and promote fair and equal employment and minority and women participation in State contracts. NYS agencies are required to establish participation goals for minority and women-owned business participation in their contracting activities.
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5. What is Article 15-A of the Executive Law
Article 15-A of the Executive Law was enacted in 1988 and created a Division of Minority and Women’s Business Development within the New York State Empire Development Corporation. This Division has the right and responsibility to issue regulations and oversee State agency contracting responsibilities in regard to Equal Employment Opportunity and Minority and Women-owned Business participation
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6. What is the definition of “contract”
State contracts include written agreements or purchase orders, including extensions, renewals and amendments
This includes contracts with local governments and schools
A grant award is considered a contract
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7. Do all state contracts have goals for MWBE participation
State agencies are required to implement the provisions of Article 15-A for all of their state contracts:
In excess of $25,000 for labor, services, equipment, materials or any combination of the above
In excess of $100,000 for real property renovations and construction
State agencies may establish participation goals for some contracts having a value below these amounts
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8. What are MWBE Targets
Each state agency establishes its own MWBE targets and they are represented as a percentage (typically between 6 and 20%) and are often broken down by category (e.g., 3% MBE and 3% WBE).
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9. How are specific amounts calculated
As a Percentage of Total Budget
As a Percentage of Non-Personnel Service Budget
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10. How are specific amounts calculated
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11. What if the MWBE participation goals cannot be met
Good faith efforts must be made to solicit MWBE firms to meet participation goals
If such efforts are unsuccessful, a Partial or Full Request for waiver may be made to the state agency providing the funding
A waiver request must be accompanied by documentation attesting to the efforts made and reasons why MWBE utilization could not be obtained
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12. What does Good Faith Effort mean
All contractors (including local governments and school districts) subject to MWBE goals are required to certify that they have made a Good Faith Effort to solicit MWBE participation in support of their state contract or grant.
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13. What does Good Faith Effort mean
Identifying logical areas of the project that MWBEs could be used as a subcontractor or supplier
Direct subcontracting opportunities
Indirect sources of spend in support of company operations
Travel service providers, catering services, advertising firms, etc.
Advertising in minority and women focused publications
Utilizing the current list of MWBEs who are available and interested in partnering
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14. What forms need to be completed to become MWBE compliant
Certification of Good Faith Efforts
MWBE Utilization Plan
Equal Employment Opportunity Staffing Plan
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15. What on going reporting is required
May be different based on the state agency awarding the funding
Monthly MWBE Contractor Compliance Reports
Quarterly EEO Workforce Utilization/Compliance Reports
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16. MWBE Requirements and General Municipal Law
Common question asked is how can I comply with GML requirements to award to the lowest responsible bidder and also comply with new MWBE requirements
Procurement professionals can become entrenched in the low bid mentality and not look for the pathways provided to meet the MWBE requirements
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17. Pathways to awarding contracts and considering MWBE participation
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18. Pathway #1 – Best Value Award
Purchase contracts (including contracts for service work, but excluding any purchase contracts necessary for the completion of a public works contract pursuant to article eight of the labor law) may be awarded on the basis of best value, as defined in section one hundred sixty-three of the state finance law, to a responsive and responsible bidder or offeror in the manner provided by this section
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19. Pathway #1 – Best Value Award
Such basis (Best Value) may also identify a qualitative factor for offerors that are small businesses or certified minority or women-owned business enterprises as defined in subdivision one, seven, fifteen and twenty of section three hundred ten of the executive law to be used in evaluation of offers for awarding contracts
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20. Pathway #2 - Competitive Bid awarded to lowest responsible bidder
Municipalities generally have broad discretion to fix reasonable standards and requirements that bidders are obliged to observe.
A specification generally may include, among other things, a description of the required item or work, the physical or functional characteristics of an item, the quantity or amount of the item or work, and the terms and conditions under which the procurement will be made.
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21. Pathway #2 - Competitive Bid awarded to lowest responsible bidder
The MWBE requirements from your grant or contract with the state should be included as terms and conditions of the solicitation
Funding from the state and federal government may come with certain requirements that must be followed. These requirements can be incorporated into your solicitation
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22. Pathway #2 - Competitive Bid awarded to lowest responsible bidder
Failure of a bidder to meet the requirements of the solicitation normally results in the bidder being deemed non-responsive
If you state an MWBE goal as part of your requirements in the solicitation and a bidder fails to meet those requirements, they would be deemed non-responsive
In similar fashion if the bidder did not meet the experience requirements of the solicitation
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23. Pathway #3 – Request for Proposal
If the services are considered a Professional Service, the solicitation method is governed by your Procurement Policy rather than GML
You have the ability to use MWBE participation as an evaluation criteria
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24. Conclusion
Local Governments and School Districts have been provided the tools to obtain MWBE participation on their contracts while conforming to the requirements of General Municipal Law
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25. Forms, Forms and More Forms
Required forms may differ by state agency but may include:
MWBE Checklist
MWBE Cover Letter
MWBE Utilization Plan
MWBE Subcontractors Notice of Intent to Participate
Equal Employment Opportunity Staffing Plan
MWBE Contractor Good Faith Efforts Certification
MWBE Contractor Unavailable Certification
MWBE Request for Waiver Form
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26. Questions and Answers The only bad question is the one not asked.
For More information:
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