Understanding NYC’s Government Contracting Landscape

New York City does not run itself. Every year, the city spends tens of billions of dollars hiring outside organizations — small businesses, large contractors, community nonprofits, health providers, engineers, educators, and more — to deliver the services that keep this city functioning. In Fiscal Year 2025, the city registered nearly 13,000 contracts worth over $42 billion. That money does not all go to big corporations. A significant and growing share is earmarked specifically for small businesses, minority- and women-owned firms, and nonprofit organizations — and the city has built entire programs designed to get that funding into the hands of community-based providers.

If you run a small business or a nonprofit and you have never seriously explored city contracting, this guide is for you. The system is complex, but the opportunity is very real.

Why This Matters

The city does not deliver most of its services alone. It relies on a vast network of private contractors — from global engineering firms to small nonprofits with a dozen employees — to get things done. That means contracting is not just a government accounting exercise. It is the mechanism through which affordable housing gets built, kids get afterschool programs, homeless New Yorkers get shelter, water infrastructure gets maintained, and public health crises get managed. Understanding who controls this system is the first step to participating in it.

The Scale of the Opportunity

Let that number sink in: $42 billion in a single fiscal year. That is money flowing to organizations that manage homeless shelters, operate afterschool programs, build water tunnels, tutor students, provide mental health services, repair public housing, and hundreds of other functions.

The NYC Mayor's Office of Contract Services notes that the city awards billions of dollars to nonprofit providers each year to deliver critical programs and services to over 3 million New Yorkers across the five boroughs. The city has also invested $741 million specifically in the nonprofit human services workforce over three fiscal years beginning in FY2025. For small and minority-owned businesses, the city has awarded over $6 billion to certified Minority and Women-Owned Business Enterprises (M/WBEs) in a single fiscal year — a record — contracting with 1,903 certified firms.

Who Is Spending the Most — And What They Need

Ten agencies drive 86.6% of all contract value. Here is what each one buys and why your organization might be a fit.

1. Department of Design and Construction — $13.6 Billion

The Department of Design and Construction is the city's primary capital builder, overseeing construction of public buildings, infrastructure upgrades, and major facilities. While the biggest contracts — including over $10.7 billion for new borough-based jail facilities — go to large general contractors, DDC projects rely heavily on subcontractors for electrical, mechanical, plumbing, environmental, and specialty work.

Who can compete: Construction subcontractors, civil and structural engineers, architects, environmental assessment firms, commissioning agents, and specialty trades. M/WBE-certified firms can access subcontracting goals embedded in DDC's largest contracts.

2. Department of Homeless Services / Department of Social Services — $5.3 Billion

The Department of Homeless Services, operating under the broader Department of Social Services, funds the city's emergency shelter system, transitional housing programs, and rapid rehousing initiatives. A single contract with Westhab, Inc. — a nonprofit housing developer — was valued at $709 million and runs through 2057. Another hotel management contract for emergency shelter came in at $929 million. These numbers signal how deeply the city relies on nonprofit and private partners for this work.

Who can compete: Nonprofit shelter operators, hotel and facilities management companies, transitional housing providers, social work and case management organizations, security firms, and food service contractors.

3. Department of Environmental Protection — $3.7 Billion

The Department of Environmental Protection manages one of the largest municipal water and sewer systems in the world. Its contracts cover tunnels, reservoirs, treatment plants, and environmental remediation. A $1.09 billion tunnel contract and an $848 million reservoir facility upgrade were among FY2025's largest DEP awards.

Who can compete: Civil and environmental engineers, tunneling specialists, water treatment technology providers, environmental consultants, and water quality testing laboratories. DEP also publishes upcoming M/WBE set-aside contracts specifically for smaller certified firms.

4. Human Resources Administration — $3.5 Billion

The Human Resources Administration manages public benefits — cash assistance, food stamps, Medicaid enrollment — and funds supportive housing placements for low-income New Yorkers. Its largest FY2025 contract was a $660 million agreement with the Institute for Community Living for affordable housing placements, running through 2065. These long-horizon contracts signal how much the city values stable, long-term nonprofit partners. HRA had one of the highest M/WBE utilization rates in the entire city at 94%.

Who can compete: Supportive housing developers and operators, affordable housing nonprofits, case management organizations, benefits navigation services, and organizations that support individuals transitioning out of shelter or the justice system.

5. Department of Health and Mental Hygiene — $2.4 Billion

The Department of Health and Mental Hygiene manages the city's public health infrastructure — disease surveillance, mental health services, substance use treatment, maternal health, and health education. Its largest contract, $563 million with Public Health Solutions, serves as a master hub through which many smaller nonprofits receive funding. Many organizations participate by subcontracting through a lead agency rather than contracting directly.

Who can compete: Community health organizations, behavioral and mental health providers, harm reduction programs, community health workers, health technology firms, and organizations doing health outreach in underserved neighborhoods.

6. Department of Youth and Community Development — $2.1 Billion, 1,521 Contracts

The Department of Youth and Community Development is one of the most accessible agencies for community-based organizations. It registered 1,521 contracts in FY2025 and funds afterschool programs, summer youth employment, literacy services, and community capacity-building grants. Its flagship Comprehensive After School System (COMPASS) program funds afterschool programming at hundreds of school sites citywide. Discretionary Contracts through DYCD are often the first entry point for smaller nonprofits into city contracting.

Who can compete: Community-based organizations, youth development nonprofits, literacy and tutoring providers, workforce development programs, settlement houses, and faith-based organizations with established programming.

7. Department of Citywide Administrative Services — $1.9 Billion

The Department of Citywide Administrative Services is the city's central purchasing authority, procuring everything from office supplies and insurance to energy contracts and real estate leases for all city agencies. DCAS operates Requirements Contracts — citywide master agreements that any agency can draw from — covering categories like janitorial services, IT equipment, printing, uniforms, and vehicle maintenance.

Who can compete: Vendors selling goods (furniture, equipment, office supplies, printing), facilities management firms, IT and technology providers, uniform and workwear suppliers, and energy service companies. This is one of the best entry points for businesses that sell products rather than services.

8. Department of Education — $1.9 Billion, 3,990 Contracts

NYC's Department of Education is the largest school district in the country — and it registered more contracts than any other city agency in FY2025. The DOE buys tutoring, special education services, transportation, school food, construction, professional development, and education technology. Its M/WBE noncompetitive small purchase program allows certified firms to receive contracts up to $1.5 million without formal competition.

Who can compete: Special education service providers, tutoring companies, enrichment and arts organizations, school food vendors, school construction contractors, ed-tech firms, and professional development trainers.

9. NYC Economic Development Corporation — $1.3 Billion

The NYC Economic Development Corporation drives economic growth projects across the five boroughs — waterfront development, industrial zones, life sciences campuses, and workforce development initiatives. EDC also runs ConstructNYC, a program specifically designed to help small and M/WBE construction firms build capacity and access larger contracts.

Who can compete: Urban planning consultants, workforce development organizations, real estate firms, life sciences companies seeking city-supported space, and small construction firms looking to grow through capacity-building programs.

10. New York City Housing Authority — $1 Billion

The New York City Housing Authority is the largest public housing authority in North America, managing over 170,000 apartments. Beyond capital repairs and maintenance, NYCHA's PACT (Permanent Affordability Commitment Together) program is converting thousands of public housing units to a Section 8 model and bringing in private developers and nonprofit service providers as long-term managers — creating new entry points for organizations that have not traditionally worked with NYCHA.

Who can compete: Property management companies, construction and repair contractors, elevator and HVAC specialists, resident services organizations, and nonprofit developers participating in PACT conversions.

The Nonprofit Fast Lane: New Reforms Make It Easier Than Ever

For nonprofits, the city has recently overhauled several processes that used to make contracting painfully slow. Here is what has changed in your favor:

Discretionary Grant Pilot: Small nonprofits receiving discretionary grants of approximately $10,000 no longer go through full competitive procurement. The pilot program replaces traditional contracts with direct grant agreements and pays 100% of funds upfront within four months of award.

50% Advance Payments: For standard human services contracts, the city now delivers 50% advance payment upon contract registration — eliminating the cash flow crisis that forced many nonprofits to take on debt just to start delivering services.

Multi-Year Contracts: The Mayor's Office of Contract Services multi-year reform allows nonprofits to enter one three-year contract per city agency, eliminating months of annual re-contracting paperwork.

52% Backlog Reduction: The city reduced its nonprofit contract backlog by 52% in a single year as of late 2025, meaning fewer organizations are stuck waiting for contracts to be registered before they can get paid.

City Council Discretionary Funding: Each year the NYC Council awards discretionary funds to nonprofits to meet local needs. Applications are typically open in January for six weeks — often the best first contract for a community-based organization.

The M/WBE Advantage: A Direct Lane to City Contracts

If your business is at least 51% owned and controlled by a minority individual or woman, getting certified as an M/WBE through the NYC Department of Small Business Services (SBS) is one of the highest-leverage moves you can make. The city has awarded a cumulative $40.7 billion to M/WBE firms since 2015 and hit its $25 billion goal three years ahead of schedule.

Here is what certification unlocks:

Non-Competitive Small Purchase Awards: City agencies can award contracts of up to $500,000 directly to certified M/WBEs without any formal competitive bidding — meaning no head-to-head competition.

DOE Small Purchase Threshold: The Department of Education can award up to $1.5 million to M/WBEs using the same streamlined method.

Participation Goals: On large contracts, prime contractors are required to subcontract a percentage of work to certified M/WBEs — creating a steady pipeline of subcontracting opportunities even if you are not ready to prime a contract yourself.

3% Interest Loans: The NYC Department of Small Business Services offers loans at 3% annual interest to certified vendors actively contracting with a city agency — addressing the cash flow gaps that come with delayed payments.

To apply, visit the SBS M/WBE certification portal at nyc.gov/sbs or call the certification hotline at (212) 513-6311. The review process typically takes eight to ten weeks after a complete application is submitted.

How to Get In: Your Action Plan

Step 1: Register on PASSPort

Every vendor — nonprofit or business — must register on PASSPort (Procurement and Sourcing Solutions Portal) at nyc.gov/mocs, the city's central procurement platform run by the Mayor's Office of Contract Services. Registration places your organization on the Citywide Bidder List and triggers automatic alerts for relevant contract opportunities.

Step 2: Search Open Solicitations

Browse open bids and Requests for Proposals (RFPs) on City Record Online (CROL) at nyc.gov/cityrecord and within PASSPort. Each agency also publishes an Agency Procurement Plan at the start of each fiscal year — a forward-looking pipeline showing every anticipated contract, category, and estimated release date.

Step 3: Use Checkbook NYC

The NYC Comptroller's Checkbook NYC at checkbooknyc.com is a public database of every city contract and payment, searchable by agency, vendor, dollar amount, and contract type. Use it to research what a target agency currently buys, who holds existing contracts, and when renewals are approaching — all signals for upcoming bid opportunities.

Step 4: Get Free Help

The New York Small Business Development Center (NYSBDC) at nysbdc.org offers free expert guidance to help small businesses navigate government contracting — from certification support to bid preparation to bid-matching services that automatically alert you to relevant opportunities.

Step 5: Attend MOCS Vendor Training

The Mayor's Office of Contract Services offers free PASSPort webinars and training sessions throughout the year, including sessions specifically for subcontractors. Find upcoming sessions at mocsvendortraining.eventbrite.com.

The Bottom Line

New York City spends $42 billion a year on contracts — and a growing, intentional share of that is designed to flow to small businesses, minority- and women-owned firms, and community nonprofits. The system has real barriers, but the city has built tools, programs, and reforms specifically to lower them. Whether you provide housing services, youth programming, health outreach, construction trades, or professional services — someone in city government is already buying what you do. The question is whether you are in the system to be found.

Start by registering on PASSPort at nyc.gov/mocs. If you are a minority- or women-owned business, begin your M/WBE certification at nyc.gov/sbs. If you are a nonprofit, reach out to your local City Council member's office to ask about discretionary funding opportunities in your district. The pipeline is open. The money is there. All that is left is for you to step into it.