Governor Signs MWBE Expansion

July 22nd, 2019

This week, Governor Cuomo signed into law S.6575/A.8414, which expands the Minority and Women Owned Business Enterprises (MWBE) program and reauthorizes the program for an additional five years. The program was originally set to expire this year. The changes to the program include:

Allows a certified MWBE to be considered the lowest bid if their bid is not more than 10% higher than the lowest bid (for construction, reconstruction, alteration, repair or improvement of any state building for projects less than $1.4 million);

Extends the term of MWBE certification from 3 years to 5 years;

Increases agency and authority discretionary purchasing threshold from $200,000 to $500,000 without a formal competitive process;

Increases the Personal Net Worth cap from $3.5 million to $15 million to make more businesses eligible;

Authorizes the Division of MWBE to organize outreach events, training and educational opportunities for MWBE firms across the state; and

Establishes a Workforce Diversity Program that requires State agencies overseeing construction projects to utilize a diverse workforce; among additional new terms.

Governor Cuomo said:

“The extension and expansion of New York’s nation-leading MWBE program will help ensure our economy is reflective of our values and of our diverse talent pool. Diversity is New York’s greatest asset, and by signing this measure into law we will empower more women and people of color to participate in State contracts and continue our aggressive program to make contracting even more inclusive.”