In Fiscal 2013, New York City procured more than $16.5 billion worth of supplies, services and construction, through more than 40,500 transactions, but each year is different. As an example of past highlights, information from the City’s Fiscal 2011 procurement activities are below:
I.• Taking Inventory
- Overall, procurements declined in Fiscal 2011 by about 12%, as agencies awarded somewhat less large-scale construction work than they had during Fiscal 2010.
- Small purchases ($100,000 or less) totaled more than $112 million. Micropurchases ($5,000 or less) accounted for $56 million. For micropurchases, 20% of City spending was accomplished through the use of innovative “procurement card” use.
- Using more than 1,000 requirement contracts, offered mainly by the Department of Citywide Administrative Services (DCAS), agencies placed $959 million worth of orders for supplies and services.
- Agencies processed task orders worth $967 million under master agreements, primarily the technology services contracts held by DoITT and the design services contracts held by DDC.
- The size of City contracts was comparable to prior years. About 81% of all purchasing dollars flowed in contracts that exceeded $3 million, with only 2% in contracts of $100,000 or less.
- Ten City agencies account for 87% of the City’s procurement, and the largest 25 contracts of the year account for 29% of the total dollars awarded. Human services – i.e., contracts that agencies enter into with vendors (typically nonprofits) to provide services directly to clients and communities throughout the City – amounted to 48% of the award.
II. Planning the Procurement
- Competitiveness remained strong, with 88% of contracts showing high levels of competition (three or more competitors), comparable to last year. Highly competitive procurements dropped to the 82% and 87% level, for human services and goods, respectively. Competition for small purchases remained strong, with 85% of the transactions reflecting ten or more competitors. Over 63,000 vendors have enrolled on the City’s bidders lists.
- The City purchased nearly $17 million worth of goods covered by environmentally-preferable purchasing (EPP) standards. Over $250 million worth of the City’s construction work included EPP products, and over one billion dollars worth supported “Green Buildings” projects.
- The City awarded 129 new concessions and collected nearly $47 million from 600 operating concessions and for cable television and for street furniture.
III. Finding Qualified and Responsible Business Partners
M/WBE Contracting and Subcontracting:
- During the four-year history of the City’s Minority- and Women-Owned Business Enterprise (M/WBE) goals program, agencies have awarded nearly two and a half billion dollars worth of work to certified M/WBE firms.
- In Fiscal 2011, more than $1.2 billion dollars worth of the City’s prime contracts were covered by M/WBE participation goals, including more than $346 million covered by prime contract goals and over $870 million covered by subcontracting goals.
- M/WBEs obtained over $561 million worth of City procurements (prime contracts and subcontracts) during Fiscal 2011. M/WBEs won nearly 25% of the City’s small purchases, up from 19% in Fiscal 2010.
- M/WBE certifications rose by 16%, to more than 3,200 certified firms at the end of Fiscal 2011.
Labor Agreements and Worker Opportunities:
- The City awarded over 905 contracts, worth $2.2 billion, subject to New York State’s prevailing wage laws and 437 contracts, worth $533 million, subject to the City’s Living Wage Law. MOCS conducted 34 detailed reviews of proposed contracts for which prevailing wage compliance questions were raised, ultimately approving 31 awards, and disallowing three.
- During Fiscal 2011, agencies awarded 60 contracts, valued at $445 million, under Project Labor Agreements (PLAs).
- For 76 contracts, worth nearly $765 million, agencies mandated participation in apprenticeship programs to afford opportunities for New Yorkers to obtain well-paying construction jobs. All PLA contracts also provide for apprenticeship opportunities. In total, about 90% of the City’s newly-awarded construction procurements provide for apprenticeships.
- Agencies issued 18 non-responsibility determinations on vendors, primarily on product quality, legal non-compliance and business integrity grounds. And MOCS processed over 31,000 vendor filings for the City’s comprehensive vendor responsibility database, VENDEX.
V. Contract Management
- Agencies completed detailed performance evaluations for over 88% of their contracts, rating 97% of their vendors as satisfactory (“fair”) or better.
- Agency efficiency improved for design change order processing, with the cost of such change orders averaging 9% of the original contract value, down from 20% in Fiscal 2010, while the average processing time also declined from 156 days last year to 109 days in Fiscal 2011.
- Agencies awarded nearly $500 million in construction work as part of the “damages for delay” pilot program, under which vendors can be compensated for project delays caused by the City.
More information on the City's procurement process is available by calling 311 or at the following websites: