Restler flags retroactive registration and missing subcontract data

In FY25, about 65% of MWBE contracts were registered retroactively, meaning that the work began before the paperwork was done to be able to actually pay the company.

For a small firm, that means the company needs to front the funds to complete the work while they wait for the city to pay.

That kind of risk can be untenable for a small business.

There are also significant gaps in the data that is reported to the public.

Since FY22, the city has registered nearly $33 billion in contracts

subject to Local Law 174 goals with no subcontract records whatsoever.

I just want to say that again.

$33 billion in contracts subject to Local Law 174 MWB goals with no subcontract data whatsoever.

Records exist for about 1,100 of the roughly 12,000 prime contracts, just about 9% of the total contracts.

And more than 20 agencies, that's nearly half the city agencies, report nothing whatsoever on subcontracts during that time.

The Department of Design and Construction manages to report this data, so it can be done, but most agencies simply don't take the time or make the effort to report this information.

What this means is that there's potentially significant MWBE utilization happening every day with subcontractors that are owned by black, Latino, Asian, women-owned firms, but we have negligible data.

Without this data, there is no accountability.

And without accountability, there will be no improvement.