New York Takes Major Step Toward Simplifying Certification Process for MWB's

Press Release

NEW YORK TAKES MAJOR STEP TOWARD SIMPLIFYING CERTIFICATION PROCESS FOR MWBE'S

Agreement will reduce the costs to small businesses seeking State contracting opportunities

Governor David A. Paterson today announced the signing of a historic inter-agency agreement that will dramatically reduce the paperwork and processing time for federally certified disadvantaged business enterprises (DBEs) to become certified as a minority or women-owned business enterprise (MWBE) by New York State. This agreement, announced at a conference at the Jacob Javits Convention Center, will yield significant progress in reducing the costs to small businesses seeking State contracting opportunities.

The agreement is based on a Memorandum of Agreement (MOA) among Empire State Development (ESD), the State Department of Transportation (DOT), the Metropolitan Transportation Authority (MTA), the Niagara Frontier Transportation Authority (NFTA) and the Port Authority of New York and New Jersey (PANYNJ).

"This Memorandum of Agreement is an important step in helping us to build our program and achieve our goals with respect to the development of minority and women-owned businesses. For years MWBEs have justifiably complained about the time-consuming and often duplicative process of navigating the certification process," said Governor Paterson. "As a result of the agreement we are announcing today, firms that have their Federal DBE certification will no longer have to fill out a complete State application and go through the full processing associated with receiving their State certification. Our Administration has committed to improving the climate for MWBEs and increasing opportunities."

For many years, Governor Paterson has demonstrated his commitment to the interests of MWBEs. Last June, he signed an executive order to increase the MWBE firms' participation in the State's debt underwriting business, removing inappropriate barriers to entry to and consideration for government contracts. This MOA furthers the Governor's efforts to expand business opportunities to minority and women-owned enterprises.

Through the Division of Minority and Women's Business Development (DMWBD), ESD is the State entity responsible for certifying MWBEs and maintains a database that is used by all other State agencies to locate MWBEs for contracting opportunities. DOT, MTA, NFTA, and PANYNJ all maintain their own database of firms certified under the federal DBE program. Under the MOA, the DMWBD will provide an expedited process with less paperwork for certified DBEs that are seeking State certification as MWBEs.

ESD President & CEO Marisa Lago said: "This agreement is consistent with our continuing efforts to improve the efficiency and effectiveness of ESD's programs. It is a common sense approach that had been missing for far too long in our certification program and that has discouraged MWBE participation. Now firms can use some of the resources they formerly would have dedicated to obtaining State certification, and redirect them to growing their businesses and creating jobs for New Yorkers."

Executive Director of the NYS Division of Minority and Women Business Development Michael Jones-Bey said: "This collaborative effort will enable firms that have their Federal certification to receive their State certification without having to fill out duplicative forms. Upon receipt of all required documents, we will be able to process an application in as little as two weeks. We estimate that there are approximately 125 firms that have submitted applications for State MWBE certification who will be able to benefit from this MOA immediately. Furthermore, we estimate that approximately 250 firms will be able to take advantage of this MOA on an annual basis."

DOT Commissioner Astrid Glynn said: "As a Commissioner that has fully embraced the Governor's call for increasing opportunities for minority and women-owned businesses, I have been frustrated because my agency is constantly faced with the challenge of finding certified firms that can bid on our projects. This MOA will help us increase the pool of firms that can bid for State contracts. This will not only help to increase opportunities for MWBEs but the increased competition will also help us contain costs at time when all of our budgets are stretched to the limit. With an expanded pool of qualified MWBEs in our State certification database it will be easier for DOT, MTA, PANYNJ, and NFTA to meet New York State's call to increase opportunities for MWBEs."

MTA CEO and Executive Director Lee Sander said: "The MTA is pleased to follow Governor Paterson's lead and join our partner agencies in this important and pragmatic compact that will streamline the State's certification process for many minority and women-owned businesses. The memorandum of agreement advances the goal of enhancing MWBE participation in transportation-related business opportunities at MTA and in contracting opportunities with other state agencies. We look forward to an expanding pool of MWBE firms becoming eligible for participation in the MTA's program as a result of this more efficient State certification process."

NFTA Executive Director Lawrence Meckler, said: "The NFTA fully supports the Governor's call for increasing opportunities for minority and women-owned businesses. This MOA will help us increase the pool of firms that can bid for State contracts. This will not only help to increase opportunities but the increased competition will also help us contain costs at a time when all of our budgets are stretched to the limit."

PANYNJ Executive Director Chris Ward said: "Under the direction and leadership of Governor Paterson on this important issue, we're increasing opportunities for MWBEs by further removing obstacles, while also creating a database that will directly contribute to job growth and economic strength in New York State well into the future. For decades, the Port Authority has supported a robust MWBE program that has provided thousands of opportunities for firms and businesses. Last year alone, that was reflected in more than a quarter of a billion dollars in World Trade Center Redevelopment projects alone awarded to MWBEs."

President of the National Hispanic Business Group and CEO of Tri-Line Contracting Jose Velazquez, said: "As a business owner and an advocate for minority and women-owned businesses I have been pushing to see these sort of reforms to the certification process for years. I am pleased to see with today's announcement, as well as other initiatives, that this administration is responding to needs of the minority and women-owned business community."

ESD's Division of Minority and Women's Business Development encourages and assists State agencies in their efforts to increase participation by MWBEs on State contracts so as to facilitate the award of a fair share of such contracts to MWBEs. The Division is responsible for conducting educational programs, maintaining New York State's MWBE certification program, measuring the State's success as it relates to the level of MWBE participation in State contracts, and enhancing MWBE business development opportunities. For more information please visit: www.nylovesmwbe.ny.gov.

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