Last reviewed on May 12, 2026 by the Government.biz editorial team. Verify program details with NYS OGS, OSC, and Empire State Development.

Why New York rewards certified small businesses

$9B+
Annual State Procurement
30%
MWBE Participation Goal
6%
SDVOB Goal

New York State runs a large, centralized procurement system with some of the most aggressive diversity participation goals in the country. The 30% Minority- and Women-owned Business Enterprise (MWBE) goal under Article 15-A and the 6% Service-Disabled Veteran-Owned Business (SDVOB) goal mean agencies are under real pressure to find and use certified firms — directly and as subcontractors. For a certified small business, New York is one of the most accessible state markets in the U.S.

New York is also a layered market: beyond the state agencies, the public authorities (MTA, Port Authority, Thruway, Dormitory Authority), the SUNY and CUNY systems, and New York City's enormous independent procurement operation together dwarf the state-agency spend covered here.

The systems you'll use

Statewide Financial System (SFS)

Register as a vendor in SFS to receive your New York State Vendor ID. Agencies use it to issue purchase orders and pay invoices. This is your foundational registration.

NYS Contract Reporter

The state's official advertising venue for contracting opportunities. Solicitations above the statutory threshold must be published here, so it's where you watch for bids in your categories.

OGS Procurement Services

The Office of General Services negotiates centralized contracts that agencies (and often local governments) buy from. Getting onto an OGS centralized contract is a high-leverage way to be purchased from repeatedly.

Two oversight layers to know. The Office of the State Comptroller (OSC) reviews and approves most state contracts above a dollar threshold before they take effect, which adds time to award. And the Preferred Source Program requires agencies to consider designated preferred sources (such as NYSID and Corcraft) before buying competitively in covered categories.

MWBE certification (Article 15-A)

The MWBE program is New York's signature small-business vehicle. Certification is handled by Empire State Development (ESD), and certified firms appear in the searchable NYS Directory of Certified Businesses. Core requirements:

The 30% goal applies to the MWBE-eligible portion of a contract, and agencies set contract-specific goals that primes must meet through MWBE subcontracting. That makes a certified MWBE attractive both as a prime and as a subcontractor that helps a larger firm hit its goal.

SDVOB certification (6% goal)

New York's Service-Disabled Veteran-Owned Business (SDVOB) program is administered by the OGS Division of Service-Disabled Veterans' Business Development and supports a 6% participation goal. To certify, the business must be at least 51% owned and controlled by a service-disabled veteran who is generally a New York State resident, and it must be a small business that performs a commercially useful function.

State SDVOB ≠ federal SDVOSB. New York's SDVOB certification is a state program with its own residency and application requirements. Holding the federal SDVOSB certification does not automatically confer New York SDVOB status — you apply separately.

Discretionary purchasing: the fast lane

One of the most useful tools for certified firms is discretionary purchasing. Under New York's procurement law, agencies can buy directly from certified MWBE and SDVOB businesses up to a statutory dollar threshold without running a full competitive solicitation. This dramatically shortens the path to a first state contract and lets agencies meet their participation goals quickly. Because the legislature periodically raises the threshold, confirm the current figure before you rely on a specific number — then make sure the agencies you target know you're certified and ready.

Where the money is

New York's largest state buyers include transportation, health, education, and the corrections and human-services agencies. But the biggest opportunities for many vendors sit in the public authorities and New York City:

A practical sequence to your first New York contract

  1. Register in SFS and obtain your NYS Vendor ID.
  2. Get certified as MWBE (through ESD) and/or SDVOB (through OGS) if eligible — this is what unlocks the goals and discretionary purchasing.
  3. Set alerts on the NYS Contract Reporter for your commodity and service categories.
  4. Pursue discretionary purchases with target agencies to build a state past-performance record fast.
  5. Court primes on larger contracts that need MWBE/SDVOB subcontracting to meet contract goals.
  6. Expand into the authorities and NYC (MTA, Port Authority, DASNY, PASSPort) once your profile and references are established.

Frequently asked questions

How do I register to do business with New York State?

Register as a vendor in the Statewide Financial System (SFS) to get a NYS Vendor ID for purchase orders and payments. Separately, monitor the NYS Contract Reporter, where solicitations above the statutory threshold are advertised.

What is the New York MWBE goal?

A 30% Minority- and Women-owned Business Enterprise participation goal under Article 15-A — among the highest in the nation. Firms certify through Empire State Development and appear in the NYS Directory of Certified Businesses.

What is the SDVOB program in New York?

The state's Service-Disabled Veteran-Owned Business program, run by OGS, supports a 6% goal. It's a state certification separate from the federal SDVOSB program, and the disabled-veteran owners must generally be New York residents.

Does New York have discretionary purchasing for certified firms?

Yes — agencies can buy directly from certified MWBE and SDVOB firms up to a statutory threshold without a formal competition. The threshold is adjusted periodically, so verify the current amount.

Is New York City part of the state procurement system?

No. NYC procures independently through its PASSPort system and has its own M/WBE certification. Treat the city as a separate market with its own registration and certification.

Related pages

Authoritative sources: NYS Contract Reporter, NYS OGS Procurement Services, and Empire State Development MWBE. This page is general information, not legal advice.