New York City Council Committee on Contracts Holds Oversight Hearing on M/WBE Utilization and Considers Four Bills - September 23, 2026

On September 23, 2026, the New York City Council Committee on Contracts, chaired by Lincoln Restler, held an oversight hearing on minority- and women-owned business enterprise (M/WBE) utilization in city contracts. The committee also considered four introduced bills: Intro 208 (adding Middle Eastern and North African Americans to disparity studies), Intro 694 (requiring targeted agency outreach when utilization goals are missed), Intro 834 (requiring reporting on subcontracts for human services contracts), and Intro 896 (prohibiting city agencies from procuring non-compostable single-use cups). Present were Councilmembers Restler, Brewer, Stevens, Vernikov, and Farías (sponsor of Intro 694). All introductions were heard and laid over.

Public Comments & Testimony

• Rana Abdelhamid (Malika, Queens-based organization): Testified in support of Intro 208, urging codification of MENA inclusion in disparity studies to ensure data collection and accountability regardless of administration changes.
• Ikrama Romaim (Women’s Empowerment Coalition of NYC): Supported Intro 208, emphasizing that data on MENA-owned businesses is needed to understand disparities and tailor support.
• Bayadir Mohammed Osman (Muslim Community Network): Shared a personal story of her father’s bodega and stressed that MENA businesses are invisible in current data, leading to missed opportunities.
• Naima Tahir (Arab American Family Support Center): Highlighted that the latest disparity study did not separately identify MENA firms, masking barriers. She urged passage of Intro 208.
• Matt Gove (Surfrider Foundation): Testified in support of Intro 896 but warned that allowing compostable cups as a substitute creates a loophole; recommended requiring reusable cups instead.
• Eve Fox (Story of Stuff Project): Opposed the compostable exemption in Intro 896, citing health risks from PFAS and bioplastics, climate footprint, and lack of composting infrastructure.
• Vicky Abugalium (Story of Stuff Project / Reusable NYC Coalition): Urged removal of compostable language and replacement with reuse systems, such as water bottle refill stations in city buildings.
• Yakob Yatsi Liel (Association of Black Contractors): Criticized the M/WBE program as a “mechanism of disenfranchisement,” called for reform, and requested that future hearings include testimony from affected small businesses.
• Tanisha Heard (Bronx Chamber of Commerce): Expressed full support for Intros 208 and 694, noting the growing MENA community in the Bronx and the need for stronger outreach when goals are missed.

Discussion Items

Oversight of M/WBE Utilization Chair Restler opened with data showing that in FY25, M/WBEs received only 5% of total city contracting spend ($2.44 billion out of $46 billion). Among contracts subject to Local Law 174, the share of contract value fell from 17% in FY24 to 8% in FY25. Black-owned firms accounted for 7% of M/WBE contracts, Latino-owned firms 7.9%, black women 1.17%, and Latinas 1.22%. Average M/WBE contract value was $750,000 versus $3.65 million for white-male-owned firms. About 65% of M/WBE contracts were registered retroactively. Since FY22, nearly $33 billion in contracts subject to Local Law 174 had no subcontract records; only 9% of prime contracts had subcontract data.

Chief Business and Diversity Officer Michael Garner testified on the administration’s achievements, including achieving the city’s aspirational 30% goal for agencies under Local Law 1 for two consecutive years, $6.9 billion in M/WBE contracts citywide in FY25, and $28 billion over four years. He noted the introduction of the B2G platform to capture real-time prime and subcontract payments from all agencies, including the “big five” non-mayoral entities.

Discussion focused on:

• The sharp decline in contract value share from FY24 to FY25 (from 17% to 8%). Chair Restler pressed for an explanation; Garner promised to follow up.
• The disparity in contract size between M/WBEs and white-male-owned firms. Garner cited access to capital, bonding, and contract bundling as factors, and cited a new $400 million contract awarded to an Hispanic-owned firm (Intercom Security Systems) as progress.
• Subcontract reporting failures: Chair Restler noted that 20 agencies reported zero subcontract data over four years. Garner said his office is now directly engaging agency commissioners and monitoring compliance; a report from Mox is expected soon.
• The new B2G platform: Garner and Deputy Dwight Flynn explained it will aggregate data from FMS and Passport to provide near-real-time reporting on M/WBE awards and payments. Chair Restler questioned why Passport itself could not be used; Mox Director (John) noted that the “big five” agencies operate under different governance and that B2G allows a single dashboard. The system is expected to go live this fiscal year.
• The underrepresentation of Black- and Latino-owned firms and especially women of color. Councilmember Stevens pressed for specific policies and timelines, noting that of 1,000+ M/WBE contracts, only one went to a black woman and one to a Latina. Garner acknowledged the need for improvement and committed to monthly meetings with agencies and a new roundtable on women-owned firms. Councilmember Farías questioned the effectiveness of current improvement plans and outreach.
• Councilmember Brewer asked about the complexity of the certification process and the share of certified firms that actually win contracts. The committee discussed that only about 22% of certified M/WBEs (2,478 of 11,382) entered new contracts in FY25. SBS Chief of Staff Harris Khan noted that 76% of firms that won contracts had received SBS services, and that a streamlined state-city certification portal is under discussion.

Legislative Deliberations

• Intro 208 (MENA inclusion): Garner stated the administration supports the goal of evaluating disparities and looks forward to further conversation. Public testimony strongly supported the bill.
• Intro 694 (agency outreach): Support from the administration in principle; Mox supports the intention. Councilmember Farías (sponsor) emphasized that agencies failing to meet goals must conduct targeted outreach to the specific M/WBE categories where they fall short.
• Intro 834 (subcontract reporting for human services): Garner said Passport already captures the required information, but Chair Restler expressed skepticism given the low reporting rates (9%) and said the bill would remain necessary unless compliance improves dramatically.
• Intro 896 (non-compostable cups): Mox is evaluating the bill. Public witnesses urged removal of the compostable exception, citing health and environmental risks. Chair Restler noted the bill would be shared with sponsor Councilmember Epstein.

Administration Responses to Key Questions

• Garner confirmed that 33% of certified M/WBEs are Black, 19% Hispanic, 23% Asian, and 26% white women. Women constitute 55% of the program.
• On agency accountability: The administration holds weekly “M/WBE CompSTAT” meetings with agencies to review metrics and address barriers.
• On certification challenges: Khan described ongoing work to streamline with the state and noted that state-certified firms can receive a city decision within a month.
• Garner’s office has 13–14 staff, plus agency M/WBE officers who report to him.

Key Outcomes

• All four introduced bills (Ints 208, 694, 834, 896) were heard and laid over by the committee. No votes were taken.
• Chair Restler outlined three major priorities: (1) drastically improve contracting with Black- and Latino-owned firms, especially black women and Latinas; (2) systematically collect and publish subcontract data to capture true M/WBE participation; and (3) create a deliberate pipeline to help small M/WBE firms win larger prime contracts.
• The committee will continue to work with the administration on subcontract reporting improvements, B2G implementation, and targeted outreach.
• Chair Restler committed to including more M/WBE firms and advocacy groups in future oversight hearings.