By Michael V. Cusenza
The Metropolitan Transportation Authority on Monday announced its commitment to award a remarkable amount of funding to historically underutilized businesses as part of its recently announced 2025-2029 Capital Plan, with $6.5 billion to $7.5 billion in contracts to be awarded to New York State Certified Minority- and Women-Owned Business Enterprises, Service-Disabled Veteran-Owned Businesses, and/or Disadvantaged Business Enterprises.
The authority also said it is committed to adding local hiring goals to $5 billion of contracts in the 2025-2029 Capital Plan, translating to thousands of union-wage jobs directly in the communities where projects are based. The MTA’s current local hiring pilot – started in 2022 enabled by federal guidance in President Joe Biden’s Bipartisan Infrastructure Law – has already led to hiring of hundreds of people on projects based in Queens and Brooklyn.
The MTA noted that its utilization of MWBE firms has led the State every year, with a record 37 percent in contract spend last year – the fourth consecutive year the MTA has exceeded the New York State MWBE goal. The MTA requires that all contracts have appropriate MWBE/SDVOB and/or DBE participation and with the MTA’s proposed 2025-2029 Capital Plan expected to exceed the $62 billion statewide economic output generated by the 2020-2024 Capital Plan, the MTA will continue its record of creating jobs and opportunities.
In 2023, the MTA awarded over $813.5 million in contracts across more than 500 MWBE firms, in addition to the $392.3 million paid to DBE firms, and $16.7 million to service-disabled veteran-owned small businesses. The MTA also awarded nearly $70 million to small businesses through its Small Business Development Program.
The MTA Board last Wednesday approved, by a vote of 10-0, the MTA’s proposed 2025-2029 Capital Plan, outlining a $68.4 billion investment in the region’s subways, buses, railroads, bridges, and tunnels over the next five years. The Capital Plan will be submitted to the MTA Capital Program Review Board by Oct. 1, who will then review and approve the plan.
“We announced our next five-year Capital Plan this month and there’s a lot of work to be done,” said MTA Chairman and CEO Janno Lieber. “When we talk about rebuilding and improving the transit system, this includes billions of dollars of work to be done by our diverse contracting community. As the fourth largest employer in the region, the MTA is proud to partner for an equitable and inclusive economy.”
To jump start this commitment, the MTA on Monday hosted an event attended by more than 250 businesses at the CUNY Graduate Center to make connections between MTA prime contractors with potential MWBE subcontractors, as well as graduates of the MTA Small Business Development Program.
“Beyond its essential role as a transportation agency, the MTA plays a huge role in the social and economic landscape of this city and region,” said MTA Chief Diversity and Inclusion Officer Lourdes Zapata. “As an industry leader with the best-in-state MWBE/SDVOB contracting program, it is important we continuously look for ways to increase awareness, connections and ultimately participation to ensure we’re doing our part in creating work and business opportunities that benefit our communities.”
