Construction industry, chambers and unions press for capacity-building, interagency alignment and mentor-protégé programs for MWBE goals

Industry groups told the Governmental Operations Committee that MWBE goals should be realistic for geography and trade, and that broad capacity-building is necessary to turn certification into contract awards.

Walter Paciolzak, vice president of government affairs for the Associated General Contractors of New York State, said the construction industry supports the program’s goal of stamping out discrimination but urged focus on implementable targets and capacity-building. “Its goals must be achievable and reflect the makeup of the industry,” Paciolzak said, adding that AGC supports legislation to streamline recertification and to authorize mentor-protégé programs.

Tom O’Connor of the Capital Region Chamber told lawmakers that the program’s processes can discourage potential applicants. “If the program was doing what it’s supposed to, you'd have cheerleaders,” O’Connor said. He urged a holistic review of statute, regulation and agency criteria so certification rules match real-world business structures.

Capacity and geography: witnesses described how statewide percentage goals can be difficult to meet in low-density or specialized markets. Ryan Silva of the New York State Economic Development Council warned that in sparsely populated regions the 30% MWBE targets may require bringing in firms from outside the community or lengthening project timelines to find capable certified firms.

Recommendations from the panel included:

- Early MWBE engagement on large infrastructure projects to build capacity and workforce: “Not only are you engaging MWBEs, but you're also building your workforce,” Silva said. Large projects that include MWBE participation can train and sustain subcontractors for smaller projects elsewhere.

- Mentor-protégé and training accelerators: AGC and others recommended reviving and scaling mentor-protégé efforts to help small firms gain practical skills and bidding experience. Paciolzak highlighted a prior pilot in Schenectady and asked lawmakers to support restarting and funding similar programs.

- Greater use of regional offices and Small Business Development Centers (SBDCs): witnesses proposed delegating parts of the certification process to regional ESD offices or leveraging SBDCs at SUNY to validate and guide applicants, perform site visits and help marshal documentation.

- Align interagency goals and waiver transparency: witnesses said inconsistent MWBE goals across state agencies and unclear waiver processes complicate procurement for municipal governments and prime contractors. “There appears to be sometimes different standards and percentages applied to project awardees from 1 state agency to another,” Silva said.

Unions and access to capital: labor representatives told lawmakers that unions can help provide skilled workers and training pipelines, but small firms often lack audited financials or accounting infrastructure necessary to access state financing programs. Roxanne Guerrero, a union-signatory contractor, said state-backed financing is available at favorable rates but small companies “can't afford to pay for an auditor to give them a review of financial statements to satisfy some of those conditions.” Ari Espinal of Laborers Local 79 said union apprenticeship and training programs can support MWBEs and asked to be more closely integrated with MWBE outreach.

Ending: Industry and labor witnesses asked the legislature to fund capacity-building, clarify interagency goal-setting, and support mentor-protégé programs so certified firms can realistically meet MWBE utilization targets and compete for state contracts.