Relates to requiring third party oversight over the state's contracting agency's procurement procedure

BILL NUMBER:S5698

Title of bill

An act to amend the executive law, in relation to third party oversight for state contracts involving minority and women-owned businesses

Purpose or general idea of bill

To ensure that State contracts are being reviewed and distributed fairly among Minority and Women-Owned Business Enterprise bidders.

Summary of specific provisions

Section 1 establishes an independent third party to oversee each contracting agency's procurement procedure for contracts made with Minority and Women-Owned Businesses. Each of these contracting agencies submit information to this third party including proposed and confirmed procurement opportunities, a list of all bids for each contract, and a list of all contractors awarded waivers. This third party shall create an evaluation system that asses each agency's utilization of Minority and Women-Owned businesses' and the established procurement goals. Additionally, this third party entity is required to provide a monthly and annual metrics based reporting, along with observations and recommendations for improvements of the MWBE contracting process including a clearly defined MWBE point person within each agency.

Section 2 defines the effective date of this act.

Justification

As we strive to achieve the MWBE goal as outlined by Governor Cuomo, it is crucial that contracting agencies make considerations that are both fair and impartial. Doing so will allow MWBE's to transcend those barriers, so that they may be judged n their merit alone. Equally crucial is that we tackle any challenge, whether perceived or actual, that poses a threat towards this balance of fairness and impartiality. Such a threat is noted in the rise of MWBE fraud as outlined recently by Manhattan District Attorney CY Vance. This legislation would require a third party entity to oversee the MWBE auditing and reporting procurement process. As part of this process the third party entity would provide monthly and annual metrics based reporting and recommendations. It would ensure an unbiased mechanism for review and responsiveness without fear of a potential pushback from any administration or legislature.

Prior legislative history

New Bill

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall expire on the same date and in the same manner as article 15-a of the executive law pursuant to subdivision (h) of section 121 of chapter 261 of the laws of 1988, as amended.