For Immediate Release
June 29, 2009
The following is the text of Congresswoman Velázquez’s letter:
June 26, 2009
Dear Governor Paterson and Mayor Bloomberg,
As you know, the State of
The State of
The work of the State’s Division of Minority and Women-Owned Business Development should be singularly focused on one goal, which is the incorporation of minority- and women-owned businesses (MWOBs) into ARRA procurement actions. ARRA is a once-in-a-generation federal investment in transportation, energy, and infrastructure system, and with it comes the opportunity to use it as a catalyst for economic development.
With nearly $10 billion in funding allocations already made to the State of
Application of Federal Small Business Protections to
Notably, Congress implicitly applied federal small business protections and goaling requirements in ARRA. Federal law provides that acquisitions exceeding $3,000 but less than $100,000 should automatically consider small businesses first if two or more interested small businesses could fulfill the contract. In addition, as part of the consideration in awarding a contract to a large company, the company and the government procurement officer negotiate a subcontracting plan, which is supposed to ensure that small businesses receive a fair proportion of the subcontract work available. Finally, agencies are encouraged, by statute, to award 23 percent of contract dollars to small companies. It is my hope that the State’s use of funds made available under ARRA embodies the spirit of these federal requirements and protections.
The City’s effort to promote minorities in its procurement activities significantly lags behind the demographic reality of our community. The Preliminary Report on Minority and Women Business Enterprises provides troubling details on the lack of progress the City has made in reaching out to these contractors and vendors. Overall, through the first half of FY 2009, the City’s efforts have resulted in an extremely low number and dollar amount of contracts being awarded to minority and women businesses.
Executive Order 71 and Local Law 129 have paved the way for minority- and women-owned firms to play a greater role in
The State and the City’s effort to maximize participation by our minority and women firms will not only benefit this sector, but it also makes good business sense. By using these companies – many of which are the best and brightest in their field – we can ensure that the State and the City are drawing on the highest quality companies to maximize tax payer dollars. This truly results in a “win-win” situation for everyone involved.
Thank you for your attention to this matter, and we look forward to working with you to increase opportunities for
Sincerely,
Nydia M. Velázquez
Chairwoman