Increases the thresholds to $50,000 for public works contracts and to $20,000 for purchase contracts, for which a locality must advertise and award to the lowest responsible bidder; authorizes the awarding of service contracts based on the basis of best value; authorizes cooperative purchasing of information technology and telecommunications hardware, software and professional services; authorizes cooperative purchases of goods.
BILL NUMBER: S274
TITLE OF BILL : An act to amend the general municipal law, in relation to the awarding of contracts, payments by contractors to subcontractors and local government procurement practices
PURPOSE : To give local governments more flexibility with respect to contracts.
SUMMARY OF PROVISIONS : Section one - amends subdivision 1 of section 103 of the general municipal law, as amended by chapter 741 of the laws of 2005 to make permanent the existing authorization to use electronic bidding tools and to raise the competitive bidding thresholds from $10,000 to $20,000 for commodities and from $20,000 to $50,000 for public works projects.
Section two - adds three new subdivisions 1-b, 1-c and 16 of section 103 of the general municipal law to allow contracts for services to be awarded on the basis of "best value" rather than lowest bid; to allow for purchasing of information technology products and services through cooperative purchasing under the federal general services administration information technology schedule 70 or successor schedules; and to allow localities to purchase materials, equipment and supplies through certain contracts let by other states and local governments.
Section three - contains the effective date.
JUSTIFICATION : This legislation will provide fiscal relief and increased operational flexibility for local governments by: (1) making permanent the existing authorization to use electronic bidding tools; (2) increasing the competitive bidding thresholds from $10,000 to $20,000 for commodities and from $20,000 to $50,000 for public works projects; (3) allowing contracts for services to be awarded on the basis of "best value" rather than lowest bid; (4) allowing purchasing of information technology products and services through cooperative purchasing under the federal General Services Administration Information Technology Schedule 70 or successor schedules; and (5) allowing localities to purchase materials, equipment and supplies through. certain contracts let by other states and local governments.
LEGISLATIVE HISTORY : 2008: S.7658 Passed Senate - This legislation was also included in the legislation was included in the 2009-09 Executive budget.
FISCAL IMPLICATIONS : None to the State.
LOCAL FISCAL IMPLICATIONS : This legislation would provide fiscal relief and increased operational flexibility for local governments.
EFFECTIVE DATE : This act shall take effect immediately provided that the amendments to subdivision 1 of section 103 of the general municipal law made by section one of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith.
STATE OF NEW YORK ________________________________________________________________________ 274 2009-2010 Regular Sessions IN SENATE (PREFILED) January 7, 2009 ___________Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, in relation to the awarding of contracts, payments by contractors to subcontractors and local government procurement practices THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 103 of the general municipal law, as amended by chapter 741 of the laws of 2005, is amended to read as follows: 1. Except as otherwise expressly provided by an act of the legislature or by a local law adopted prior to September first, nineteen hundred fifty-three, all contracts for public work involving an expenditure of more than
[twenty]FIFTY thousand dollars and all purchase contracts involving an expenditure of more than [ten]TWENTY thousand dollars, shall be awarded by the appropriate officer, board or agency of a poli- tical subdivision or of any district therein including but not limited to a soil conservation district, to the lowest responsible bidder furnishing the required security after advertisement for sealed bids in the manner provided by this section. In any case where a responsible bidder's gross price is reducible by an allowance for the value of used machinery, equipment, apparatus or tools to be traded in by a political subdivision, the gross price shall be reduced by the amount of such allowance, for the purpose of determining the low bid. In cases where two or more responsible bidders furnishing the required security submit identical bids as to price, such officer, board or agency may award the contract to any of such bidders. Such officer, board or agency may, in his or its discretion, reject all bids and readvertise for new bids in the manner provided by this section. For purposes of this section, "sealed bids", as that term applies to purchase contracts, shall includeEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00972-01-9 S. 274 2
bids submitted in an electronic format, provided that the governing board of the political subdivision or district, by resolution, has authorized the receipt of bids in such format. Submission in electronic format may not, however, be required as the sole method for the submission of bids. Bids submitted in an electronic format shall be transmitted by bidders to the receiving device designated by the poli- tical subdivision or district. Any method used to receive electronic bids shall comply with article three of the state technology law, and any rules and regulations promulgated and guidelines developed there- under and, at a minimum, must (a) document the time and date of receipt of each bid received electronically; (b) authenticate the identity of the sender; (c) ensure the security of the information transmitted; and (d) ensure the confidentiality of the bid until the time and date estab- lished for the opening of bids. The timely submission of an electronic bid in compliance with instructions provided for such submission in the advertisement for bids and/or the specifications shall be the responsi- bility solely of each bidder or prospective bidder. No political subdi- vision or district therein shall incur any liability from delays of or interruptions in the receiving device designated for the submission and receipt of electronic bids. S 2. Section 103 of the general municipal law is amended by adding three new subdivisions 1-b, 1-c and 16 to read as follows: 1-B. WHEN THE OFFICER, BOARD OR AGENCY OF ANY POLITICAL SUBDIVISION OR OF ANY DISTRICT THEREIN CHARGED WITH THE AWARDING OF CONTRACTS UNDER THIS SECTION DETERMINES THAT IT IS IN THE BEST INTEREST OF THE POLITICAL SUBDIVISION OR DISTRICT THEREIN, THEY MAY AWARD CONTRACTS FOR SERVICES ON THE BASIS OF BEST VALUE AS DEFINED IN SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW TO RESPONSIVE AND RESPONSIBLE OFFERERS. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, A CONTRACT FOR SERVICES MAY BE AWARDED ON THE BASIS OF BEST VALUE PROVIDED THAT THE CONTRACTING PROCESS AND AWARD SHALL COMPLY WITH THE GUIDELINES ESTAB- LISHED UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW BY THE STATE PROCUREMENT COUNCIL. ANY PROCUREMENT MADE UNDER THIS SUBDIVI- SION SHALL BE APPROVED BY THE GOVERNING BODY OF THE PURCHASING POLITICAL SUBDIVISION OR DISTRICT THEREIN. 1-C. A POLITICAL SUBDIVISION OR ANY DISTRICT THEREIN SHALL HAVE THE OPTION OF PURCHASING INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS HARD- WARE, SOFTWARE AND PROFESSIONAL SERVICES THROUGH COOPERATIVE PURCHASING PERMISSIBLE PURSUANT TO FEDERAL GENERAL SERVICES ADMINISTRATION INFORMA- TION TECHNOLOGY SCHEDULE SEVENTY OR ANY SUCCESSOR SCHEDULE. A POLITICAL SUBDIVISION OR ANY DISTRICT THEREIN THAT PURCHASES THROUGH GENERAL SERVICES ADMINISTRATION SCHEDULE SEVENTY, INFORMATION TECHNOLOGY AND CONSOLIDATED SCHEDULE CONTRACTS SHALL COMPLY WITH FEDERAL SCHEDULE ORDERING PROCEDURES AS PROVIDED IN FEDERAL ACQUISITION REGULATION 8.405-1 OR 8.405-2, WHICHEVER IS APPLICABLE. ADHERENCE TO SUCH PROCEDURE SHALL CONSTITUTE COMPLIANCE WITH THE COMPETITIVE BIDDING REQUIREMENTS UNDER THIS SECTION. 16. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION AND IN ADDITION TO THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION AND SECTION ONE HUNDRED FOUR OF THIS ARTICLE, ANY OFFICER, BOARD OR AGENCY OF A POLITICAL SUBDIVISION OR OF ANY DISTRICT THEREIN AUTHORIZED TO MAKE PURCHASES OF MATERIALS, EQUIPMENT AND SUPPLIES MAY MAKE SUCH PURCHASES AS MAY BE REQUIRED BY SUCH POLITICAL SUBDIVISION OR ANY DISTRICT THEREIN THROUGH THE USE OF A CONTRACT LET BY ANY OTHER STATE OR POLITICAL SUBDIVISION IF SUCH CONTRACT WAS LET IN ACCORDANCE WITH COMPETITIVE BIDDING REQUIREMENTS THAT ARE CONSISTENT WITH THIS SECTIONS. 274 3
AND WITH THE INTENT OF EXTENDING ITS USE TO CERTAIN OTHER GOVERNMENTAL ENTITIES. PRIOR TO MAKING SUCH A PURCHASE, THE GOVERNING BOARD OF THE POLITICAL SUBDIVISION OR DISTRICT MAKING THE PURCHASE SHALL DETERMINE, UPON REVIEW OF ANY NECESSARY DOCUMENTATION AND, AS APPROPRIATE, UPON ADVICE OF ITS COUNSEL, THAT THE REQUIREMENTS OF THIS SUBDIVISION HAVE BEEN MET, AND SHALL CERTIFY, BY RESOLUTION, THAT SUCH PURCHASE IS PERMITTED UNDER THE PROCUREMENT POLICIES AND PROCEDURES OF THE POLITICAL SUBDIVISION OR DISTRICT, ADOPTED PURSUANT TO SECTION ONE HUNDRED FOUR-B OF THIS ARTICLE. S 3. This act shall take effect immediately provided that the amend- ments to subdivision 1 of section 103 of the general municipal law made by section one of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith.