Expansion of M/WBE Noncompetitive Small Purchase Method
On December 29, 2017, Governor Cuomo signed legislation (NY State Senate Bill S6513B, codified in Section 311 of the New York City Charter) which gave the City the authority to award goods and services contracts valued up to $150,000 to City-certified Minority and Women-Owned Business Enterprises (M/WBEs) without formal competition. While the City was previously authorized to award micro purchases up to $20,000 for goods and services without competition, under this new procurement method, City agencies were able to award such contracts up to $150,000 exclusively to City-certified M/WBE vendors. In Fiscal 2020, the Procurement Policy Board voted to adopt a number of changes to the Procurement Policy Board Rules (“PPB Rules”), which govern procurement actions for City agencies. The PPB Rules allow agencies to use the M/WBE Noncompetitive Small Purchase mechanism to make purchases above the micropurchase limit, but not in excess of $500,000, to City-certified M/WBEs provided that they obtain at least three price quotes from City-certified M/WBEs. The rule changes also expanded the scope of applicability of the M/WBE Small Purchase mechanism, allowing agencies to use this mechanism to procure construction services as well. In Fiscal Year 2020, the City awarded 1,065 contracts to City-certified M/WBEs, totaling $84.1 million.
Health and Human Service Sector Initiatives
In Fiscal Year 2020, the Mayor’s Office of Contract Services supported the health and human service (HHS) sector through a number of initiatives and reforms. In response to COVID-19, MOCS was a principal member of a centralized HHS Team that designed and implemented contracting, budgeting and financial policies to provide organizations with flexibility, business stability and cash flow during the shifting and dynamic environment. In the first two months of the pandemic (March - May), the City disbursed $755 million dollars through more than 1500 advances and 1100 invoice payments. MOCS is also a principal member of the City Implementation Team, responsible for managing the Indirect Cost Rate Funding Initiative. In Fiscal Year 2020, MOCS, in collaboration with the Nonprofit Resiliency Committee, led an effort to realize more timely contract registration. For contracts with July 1 start dates, more than 80% were ready for registration on time. Six agencies – ACS, DOHMH, DFTA, DOP, HRA, DHS – were over 90%. By August, roughly 90% of all FY 20 funding was registered ($4.2b). Finally, FY20 saw universal adoption of HHS Accelerator for HHS budgets and invoices. Accelerator is a centralized, digital platform that standardizes financial management for more than $5 billion worth of contracts. Through HHS Accelerator, providers are paid within 4 median days of invoice acceptance. For further information about how MOCS supports the health and human service sector, please visit nyc.gov/nonprofits