Authorizes a municipally sponsored, owned or operated public transit system to utilize an existing public contract when procuring vehicles, supplies, equipment or services upon adoption of a resolution of the governing body of such political subdivision.
BILL NUMBER: S275
TITLE OF BILL : An act to amend the general municipal law, in relation to the procurement of transit vehicles, supplies, equipment or services
PURPOSE : To authorize municipalities to participate in joint and/or piggyback procurement arrangements by allowing a municipality to use an existing contract between a vendor and another municipality, the State of New York or regional public transportation authority, which has been contracted through a competitive bid process.
SUMMARY OF PROVISIONS : Section 1-adds a new subdivision 9-a to § 103 of the General Municipal Law to allow a municipality to use an existing competitively-bid contract of another municipality, the State of New York, or a public transportation authority for procuring vehicles, supplies, equipment or services to be used by the municipally owned, operated or sponsored public transit system.
Section 2-contains the effective date.
EXISTING LAW : § 103 of the General Municipal Law concerns the competitive bidding requirements for public work contracts and limits the ability of a county or any other political subdivision within a county to jointly competitively bid for goods and services with another county or political subdivision within the county unless such counties or political subdivisions within a county are adjoining.
JUSTIFICATION : Regional public transportation authorities are currently able to participate in joint and/or piggyback procurement arrangements without geographic limitations and, as a result, are realizing significant efficiencies and cost savings from this flexibility in purchasing buses, equipment and other supplies that are unique to a public transit operation. However, § 103 of the General Municipal Law prohibits municipalities from participating in similar joint procurement arrangements unless the municipalities are contiguous to one another.
This proposal would allow a county or municipality to use an existing contract between a vendor and another municipality or public transportation system or the State of New York, located anywhere in the state, which has been contracted through a competitive process, to procure vehicles, supplies, equipment or services to be used by the municipally owned or operated public transit system. The competitive bidding requirements of § 103 are preserved in this proposal by requiring that such other municipal public transportation sponsor or authority or the State used a process of competitive bidding or a process of competitive requests for proposals to award such contract. The governing body of the municipality must also authorize by resolution the county or other political subdivision to enter into such procurement arrangements.
Enactment of this proposal would mitigate duplication of effort between non-adjoining municipalities and result in savings to municipal transit systems, and ultimately the traveling public. For example, a small transit system, which may need to buy only one bus, would be able to avoid having to research and develop specifications for the bus. The bus manufacturer would be able to avoid the cost of meeting the unique specifications for the one bus. While this provision is expected to benefit municipal public transportation sponsors anywhere in the state that provide or sponsor transit services, it will have a profound effect on upstate small and rural systems that currently do not possess the technical or financial capability or the optimum contract quantity required to effect procurement efficiencies. These systems, with often much smaller budgets, may realize significant savings and greatly improve the quality or usefulness of the procurement.
LEGISLATIVE HISTORY : 2008: S.1136 Local Government 2007: S.1136 Passed Senate 2005/06: S.730 Passed Senate 2003/04: S.4360 Local Government
FISCAL IMPLICATIONS : This proposal is revenue neutral to the State. It would result in procurement savings, the amount not quantified at this time, for counties and other municipal transit sponsors.
EFFECTIVE DATE : This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 275 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 procure- ment of transit vehicles, supplies, equipment or services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 103 of the general municipal law is amended by adding a new subdivision 9-a to read as follows: 9-A. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION AND OF ANY OTHER LAW TO THE CONTRARY, WHEN PROCURING VEHICLES, SUPPLIES, EQUIP- MENT OR SERVICES TO BE USED BY A MUNICIPALLY SPONSORED, OWNED OR OPER- ATED PUBLIC TRANSIT SYSTEM, A POLITICAL SUBDIVISION MAY, UPON THE ADOPTION OF A RESOLUTION OF THE GOVERNING BODY OF THE POLITICAL SUBDIVI- SION, UTILIZE AN EXISTING PUBLIC CONTRACT FOR SUCH PROCUREMENT IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION. IN THE USE OF AN EXISTING PUBLIC CONTRACT PURSUANT TO THIS SUBDIVISION, THE POLITICAL SUBDIVISION MAY PROCURE VEHICLES, SUPPLIES, EQUIPMENT OR SERVICES WITH- OUT COMPLYING WITH THE OTHER REQUIREMENTS OF THIS SECTION. (B) AN EXISTING PUBLIC CONTRACT SHALL ONLY BE USED PURSUANT TO THIS SUBDIVISION IF THE VEHICLES, SUPPLIES, EQUIPMENT OR SERVICES PROCURED ARE AVAILABLE THROUGH AN EXISTING CONTRACT THAT WAS PREVIOUSLY AWARDED BY THE STATE, A POLITICAL SUBDIVISION OF THE STATE OR A PUBLIC TRANSPOR- TATION AUTHORITY FOLLOWING A PROCESS OF COMPETITIVE BIDDING OR THE REVIEW OF COMPETITIVE PROPOSALS SOLICITED FROM THE PUBLIC. (C) THE POLITICAL SUBDIVISION SHALL ACCEPT SOLE RESPONSIBILITY FOR ANY PAYMENT DUE AS A RESULT OF THE POLITICAL SUBDIVISION'S PARTICIPATION IN THE PREVIOUSLY EXISTING CONTRACT. ALL PURCHASES AND ALL CONTRACTS FOR VEHICLES, SUPPLIES, EQUIPMENT OR SERVICES UNDER THIS SUBDIVISION SHALL BE SUBJECT TO AUDIT AND INSPECTION BY THE POLITICAL SUBDIVISION FOR WHICH MADE. A POLITICAL SUBDIVISION SHALL NOT UTILIZE AN EXISTING PUBLICEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00253-01-9 S. 275 2
CONTRACT PURSUANT TO THIS SUBDIVISION IF THE POLITICAL SUBDIVISION HAS ALREADY ENTERED INTO A CONTRACT FOR VEHICLES, SUPPLIES, EQUIPMENT OR SERVICES UPON THE SAME TERMS, CONDITIONS AND SPECIFICATIONS AT A LOWER PRICE. S 2. This act shall take effect immediately.