Making the Grade

Department of Housing Preservation and Development,

October 18, 2021

M/WBE Letter Grade

Letter Grade Overview

The Department of Housing Preservation and Development had $46.1 million in total M/WBE-eligible spending, with 40% on construction, 14% on professional services, 43% on standard services, and 3% on goods. HPD received a D grade, earning an F grade with African Americans, an A grade with Asian Americans, an F grade with Hispanic Americans, and an F grade with women-owned firms. In FY 21, HPD spent $19 million with M/WBEs, a decrease of $1.4 million since FY 20. This represents 41% M/WBE spending, a 4 percentage point decrease in its M/WBE share since FY 20. When compared with FY 14, HPD increased their spending by $259,466, which represents a 35 percentage point increase in M/WBE spending.

About HPD

http://www1.nyc.gov/site/hpd/vendors/doing-business.page

Agency Fiscal Year 2021 Spending within Local Law 174*

  African American Asian American Hispanic American Women Non M/WBE
  $ % $ % $ % $ % $
Construction $27,911 1.26% $4,080,154 199.02% $336,854 10.16% $808,332 17.06% $13,215,858
Professional Services $126,110 15.97% $4,693,486 No Goal $138,515 23.04% $439,852 17.94% $1,288,607
Standard Services $59,505 2.10% $7,647,690 390.39% $274,941 13.59% $156,183 2.69% $11,689,331
Goods < $100K $9,757 14.13% $41,179 33.45% $57,047 69.41% $147,663 41.64% $906,773
Total LL174 Spending $223,283 $16,462,509 $807,357 $1,552,030 $27,100,568
Weighted Grade F A F F N/A

$ = the dollar amount spent in the Local Law 174 eligible category. % = the percentage of the Local Law 174 target that was achieved.

* Letter grades are calculated using a weighted average of agency spending across population groups and sectors. All dollars and percents are based on Local Law 174 and exclude categories described in Appendix D: Methodology. For a complete worksheet detailing how this agency grade was calculated, see Appendix B: Worksheets.

M/WBE Letter Grade Worksheet

Reference: Local Law 174 Target Spending Percent

Category C PS SS G
African American (AFA) 8% 12% 12% 7%
Asian American (AA) 8% No Goal 3% 8%
Hispanic American (HA) 4% 8% 6% 5%
Women (W) 18% 17% 10% 25%
C: Construction  PS: Professional Services. SS: Standard Services G: Goods

Reference: Grade Scale

Weighted % Score Avg. Score Grade
> 80 5 > 4.25 A
> 60 4 > 3.25 B
> 40 3 > 2.25 C
> 20 2 > 1.25 D
< 20 1 < 1.25 F

Step 1: Total Eligible Spending Per Industry

Total Eligible Spending C PS SS G
$46,145,748 $18,469,109 $6,686,570 $19,827,650 $1,162,419

Step 2: Weighted Matrix (Industry Spending/Total Eligible Spending)

Category C PS SS G
AFA, HA, W 40.02% 14.49% 42.97% 2.52%
AA No Goal

Step 3: Actual LL174 M/WBE Spending

Category C PS SS G
African American $27,911 $126,110 $59,505 $9,757
Asian American $4,080,154 $4,693,486 $7,647,690 $41,179
Hispanic American $336,854 $138,515 $274,941 $57,047
Women $808,332 $439,852 $156,183 $147,663

Step 4: Actual Spending Percentage (Actual LL174 M/WBE Spending/Industry Spending)

Category C PS SS G
African American 0.15% 1.89% 0.30% 0.84%
Asian American 22.09% 70.19% 38.57% 3.54%
Hispanic American 1.82% 2.07% 1.39% 4.91%
Women 4.38% 6.58% 0.79% 12.70%

Step 5: LL174 M/WBE Spending as Percentage of Target Achieved (Actual Spending Percentage/LL174 Target)

Category C PS SS G
African American 1.26% 15.97% 2.10% 14.13%
Asian American 199.03% No Goal 390.39% 33.45%
Hispanic American 10.16% 23.04% 13.60% 69.41%
Women 17.06% 17.94% 2.69% 41.64%

Step 6: Final Score

Category C PS SS G
African American 4.07% F 1 2
Asian American 356.44% A 5
Hispanic American 15.00% F 1
Women 11.63% F 1

Subcontract Data

Department of Housing Preservation and Development, FY 2021

Total Reported Spending LL174 Eligible Spending Non Eligible Spending
$489,671 $233,871 $255,800
LL174 Sub Spending Construction Goods Professional Services Standard Services M/WBE Total
African American $0 $0 $3,600 $0 $3,600
Asian American $223,321 $0 $0 $0 $223,321
Hispanic American $0 $0 $6,950 $0 $6,950
Women $0 $0 $0 $0 $0
Industry Total $223,321 $0 $10,550 $0 $489,671
$242 billion
Aug
2022