The Office of Contractor and Supplier Diversity (“OCSD”) implements Empire State Development’s (“ESD”) Minority- and Women-owned (“MWBE”) Program (from NYS Executive Law Article 15-A) and Service-Disabled Veteran-owned Business (“SDVOB”) Program (from NYS Executive Law Article 17-B)  by setting MWBE and SDVOB project goals and monitoring compliance for all ESD projects. 

All ESD construction projects over $100,000 and all consulting, services and commodities projects over $25,000 will be reviewed for applicability under the MWBE and SDVOB programs.  Based on OCSD’s analysis, MWBE and/or SDVOB goals may be established.

This page will provide information for ESD grantees and contractors on compliance requirements, resources, and important policies related to MWBE and SDVOB compliance.  All MWBE and SDVOB compliance activities are completed in the NYS Contract System (“NYSCS”), at: ny.newnycontracts.com

If you have any questions about ESD’s goals and requirements, please contact OCSD.

New York State (NYS) Directories of Certified Firms

Up-to-date listings of all NYS-certified MWBEs and SDVOBs:

• Directory of NYS-certified MWBEs
• Directory of NYS-certified SDVOBs

NYS MWBE and SDVOB Program Information

• For information on the statewide MWBE program and MWBE certification, visit the Division of Minority and Women’s Business Development
• For information on the statewide SDVOB program and SDVOB certification, visit the Division of Service Disabled Veteran Owned Business Development

Reporting Forms

Applicable for most grantees, contractors, and RFP respondents:

1. OCSD-1 - MWBE and SDVOB Participation / EEO Policy Statement
   • Employment Opportunity Policy Statement required of all ESD projects, regardless of MWBE and SDVOB goals.
2. OCSD-2 - Staffing Plan
   • A staffing plan to document the composition of the proposed workforce to be utilized in the performance of the project by the specified categories listed, including ethnic background, gender, and federal occupational categories. 
3. OCSD-3 - Workforce Utilization Report
   • Workforce utilization update on the composition of project staff for ESD’s contractors and subcontractors. Compensation data, as required under Executive Order 162, is only needed for ESD contracts, not ESD grants.
     • Instructions: Completing and Submitting Workforce Utilization Reports
     • Guidelines: Submitting Workforce Utilization Reports Pursuant to EO 162
     • Workforce Utilization Report - EEO SOC Classification Guide
4. OCSD-4 - MWBE and SDVOB Utilization Plan
   • Report identifying all NYS-certified firms on the project, their scope of work, and contract value. Due within the first ten (10) days after execution of the first signed grant/contract agreement with ESD Grantee/contractor may request an extension of this deadline, which should be sent to, and approved by, the OCSD compliance manager.
5. OCSD-5 - Waiver Request Form
   • Form needed if the project MWBE goals have not been met. This form must be submitted to the project’s OCSD Compliance Manager along with a narrative explaining the waiver request and good faith efforts made to engage NYS-certified firms.
6. OCSD-6 - Compliance Report
   • Monthly submissions to report MWBE and SDVOB payments on a project with proof of payment to MWBEs and SDVOBs is required. MWBE and SDVOB payments are also referred to as utilization that counts towards your project’s goals. This information can also be completed directly into the NYSCS. For instructions, please see the Payment Reporting and Confirmation guide under “Grantee and Contractor Compliance Resources”.
7. OCSD-7 - MWBE Expedite Request
   • Applicable for ESD grantees and contractors interested in requesting an expedited review of a firm’s MWBE application. This form must be submitted prior to the execution of the contract with the MWBE applicant. OCSD does not process MWBE certification applications and cannot guarantee the timing of the review or the final determination of the review.

Proposal Forms

Applicable for pre-identified RFPs and procurements, only: 

1. Diversity Practices Questionnaire
   • Questionnaire for scoring of pre-identified competitive procurements.

Standard Contract and Grant Language

1. MWBE Contract and Grant Language: Schedule B Participation by Minority and Women-Owned Business Enterprises: Requirements and Procedures
2. SDVOB Contract and Grant Language: Schedule B-1 Participation by Service-Disabled Veteran-Owned Businesses With Respect to State Contracts 

OCSD has created resource documents to help grantees, contractors, MWBEs and SDVOBs with common questions and concerns.

1. OCSD Reporting Procedures & Requirements FAQs
   This document provides answers to some frequently asked questions related to MWBE and SDVOB compliance requirements.
2. Payment Reporting and Confirmation
   This guide provides the step-by-step process to report MWBE and SDVOB payments directly in the NYSCS and guides subcontractors on how to confirm those payments.
3. OCSD Form Guidelines
   This document provides overall guidance on all OCSD forms and reporting requirements, frequency of these requirements, and reporting instructions.

Supplier/Broker Policy

The following policy applies only to ESD construction projects:

Only sums paid to MWBEs for the performance of a commercially useful function, as that term is defined in 5 NYCRR § 140.1, may be applied towards the achievement of the applicable MWBE participation goal.

1. MWBE Suppliers: 60% utilization credit – NYS-certified MWBEs that serve, and are coded, as construction suppliers, may only receive credit for 60% of any payments received. 
   • For example, an MWBE construction supplier with $1,000 in utilization (payments) may only count $600 (60%) towards its MWBE goal.
   • Generally, suppliers will have a North American Industry Classification System ("NAICS") code beginning with 423 or 424, or a National Institute of Governmental Purchasing ("NIGP") code that does NOT begin with the number “9.”  This is not an exhaustive list, and each vendor, project and code should be reviewed independently.
   • Suppliers are defined as firms that sell goods out of their revolving inventory. 
2. MWBE Brokers: Commission Only – NYS-certified MWBES that serve, and are coded, as construction Manufacturers’ Representatives/Brokers, may only receive credit for the commission they receive or their markup percentage for brokering supplies.   
   • Any firms that are coded as brokers or manufacturers’ representatives (i.e. NAICS code 425120) in their MWBE certification profile fall in this category. This is not an exhaustive list, and each vendor, project and code should be reviewed independently.
3. MWBE Manufacturers: 100% utilization credit – NYS-certified MWBEs that serve and are coded as a manufacturer may receive 100% credit for their MWBE utilization. 
   • Manufacturers are firms that produce and distribute the item themselves. 

For non-construction projects:

1. MWBE Manufacturers/Suppliers: 100% utilization credit – Manufacturers that produce and distribute the item themselves and suppliers that sell goods out of their revolving inventory may receive 100% utilization credit.
2. MWBE Broker: 25% utilization credit – Any firms that are listed as brokers or manufacturers’ representatives that fall in this category may receive 25% utilization credit.

Certification Codes Policy

MWBE and SDVOB utilization credit, which are the payments counted towards the MWBE and/or SDVOB goals, can be based solely on the work the MWBE/SDVOB is coded to perform in their certification profile.  If a certified firm performs work for which they do not have the applicable commodity codes (NAICS and/or NIGP codes) as part of their certification profile, ESD may not count those activities and payments towards the project’s goals.

MWBE Certification Application Expedite Policy

ESD grantees and contractors may request that the certification review for an MWBE applicant be expedited, via OCSD-7.  For this request to be processed, the following criteria must be met:

1. The request should be for a firm that has a pending MWBE certification application in the NYSCS.
2. The procurement/award must not yet have been made. If the MWBE applicant has already been awarded the work, the request to expedite the certification review will not be processed.
3. The requestor must have searched the NYS Directory of Certified MWBEs and found no certified MWBEs suitable and/or available to perform the work needed.
   • Copies of all searches and the results must be submitted with the expedite request.
4. If the search for current MWBEs resulted in certified firms, the requestor must provide specific and detailed written reasons for not utilizing certified MWBEs that resulted from the search of the NYS Directory of Certified MWBEs.

Good Faith Efforts Requirement

“Good Faith Efforts” is the standard applied to the MWBE and SDVOB participation requirements in all applicable ESD projects.  ESD grantees and contractors shall adhere to this standard and ensure that proactive and ongoing efforts are made throughout the project to include MWBE and SDVOB participation of NYS-certified firms in all categories.

For OCSD to evaluate “Good Faith Efforts”, grantees and contractors must maintain detailed records of their efforts to include NYS-certified MWBEs and SDVOBs in the project completion.

For additional details regarding “Good Faith Efforts,” please review the following:

• For “Good Faith Efforts” for the MWBE program, please see section 142.8 of NYCRR 5
• For “Good Faith Efforts” for the SDVOB program, please see section 252.2(m) of NYCRR 9

• Empire State Development FY2019-20 MWBE Utilization Plans and Waivers
• Empire State Development FY2019-20 SDVOB Utilization Plans and Waivers
• Department of Economic Development FY2019-20 MWBE Utilization Plans and Waivers
• Department of Economic Development FY2019-20 SDVOB Utilization Plans and Waivers
• Empire State Development FY2020-21 MWBE Utilization Plans and Waivers
• Empire State Development FY2020-21 SDVOB Utilization Plans and Waivers
• Department of Economic Development FY2020-21 MWBE Utilization Plans and Waivers
• Department of Economic Development FY2020-21 SDVOB Utilization Plans and Waivers

Contact OCSD at: [email protected]

If you have an existing project, please contact your assigned OCSD Compliance Manager, as below.

ESD Grants:

Capital District/Finger Lakes/Western NY: Kelly Forsey
Central NY/Mohawk Valley/Southern Tier: Jordan Kaplan
Long Island/North Country/NYC (Bronx, Brooklyn, Queens): Monique Campbell
Mid-Hudson/NYC (Manhattan, Staten Island): Denise Ross

ESD Contracts and Department of Economic Development  ("DED") Projects:

All DED Projects: Ami Shipley
ESD Subsidiary - USA Niagara: Kelly Forsey
ESD Subsidiary - AYDC: Jordan Kaplan
ESD Procurement Contracts/ESD Subsidiaries (CCDC, ECHDC, HCDC, QWDC, LMDC, ESNMC, MSDC): Ami Shipley