Bill S415-2013

Authorizes political subdivisions to award public competitively bid contracts to businesses that participate in certain programs

Authorizes political subdivisions to award publicly competitively bid contracts to businesses that participate in a program designed to foster participation by local businesses in public procurement at a cost premium not to exceed ten percent of the lowest bid.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S415

TITLE OF BILL:

An act to amend the general municipal law, in relation to authorizing political subdivisions to award public competitively bid contracts to businesses that participate in a program designed to foster participation by local businesses in public procurement at a cost premium not to exceed ten percent of the lowest bid

PURPOSE:

To ensure local businesses can compete for local procurement opportunities.

SUMMARY OF PROVISIONS:

Amends Section 104-a of the general municipal law to provide that when purchasing goods, services or construction for public use by competitive sealed bids on contracts less than one million a municipality that employs a program to foster the participation of local businesses in public procurement, may award such contracts to a participant of such a program even if their bid is not the lowest bid received, provided that the bid does not exceed the lowest bid by more than ten percent.

JUSTIFICATION:

According to the NYC Economic Development Corporation, there are over 220,000 small businesses in New York City. Businesses with fewer than 100 employees comprise 98% of all businesses in the City. Moreover, these businesses employ nearly 50% of all New Yorkers in the private sector.

The current economic climate is having a devastating effect on small businesses all over the City. According to the NYC Comptroller, the economic downturn could cause up to 165,000 New Yorkers to be laid off over the next two years. Furthermore, nearly 80% of the people who may lose their jobs are likely to be employees of small businesses.

Due to General Municipal Law § 103, localities cannot require agencies to award contracts to anyone but the lowest responsible bidder and prohibits the City from any flexibility in the award of such contracts. As a result, the City's current program that is designed to assist local businesses in obtaining contracts with the City, primarily assist businesses in accessing contracting opportunities, informing them how to navigate the procurement system and providing them with technical training to improve their chances of being the lowest responsible bidder. GML § 103 constrains localities from developing a stronger program that might result in more contract awards to local businesses.

In order to strengthen the program aimed to assist local businesses in obtaining contracts with the City, legislation that would allow the

localities to give certified firms a small price preference could help address this problem. General Municipal Law § 104-a already allows for such a price preference for the purchase of recycled products by political subdivisions (political subdivisions may purchase recycled products at a cost premium not to exceed ten percent of what a non-recycled product would cost or not to exceed 15% for products manufactured with at least 50% secondary materials generated from NY waste stream). Legislation that mirrors GML 104-a, would allow municipalities to give local businesses a small price preference when awarding qualifying contracts.

LEGISLATIVE HISTORY:

2011-11: S.1353/A.10057 2009-10: S.3514/A.7369 - Passed Senate

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect on the thirtieth day after it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 415 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. DILAN -- 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 authorizing political subdivisions to award public competitively bid contracts to businesses that participate in a program designed to foster partic- ipation by local businesses in public procurement at a cost premium not to exceed ten percent of the lowest bid THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 104-a of the general municipal law, as amended by chapter 468 of the laws of 1994, is amended to read as follows: S 104-a. Purchasing [of products] for public use. 1. Notwithstanding the provisions of section one hundred three of this [chapter] ARTICLE, when purchasing products the officer, board or agency of any political subdivision or of any district therein charged with the awarding of public contracts may, wherever recycled products meet contract specifi- cations and the price of such products is reasonably competitive, purchase such products. For the purpose of this [section] SUBDIVISION and until July first, nineteen hundred ninety-six, "recycled product" shall mean any product which has been manufactured from secondary mate- rials, as defined in subdivision one of section two hundred sixty-one of the economic development law, and meets secondary material content requirements adopted by the office of general services under subdivision [one of section one hundred seventy-seven] THREE OF SECTION ONE HUNDRED SIXTY-FIVE of the state finance law for products available to the poli- tical subdivision or district under state contract or, if no such contract for such product is available, any product which meets the secondary material content requirements adopted by the political subdi- vision or district thereof with respect to a specific commodity procure- ment by such entity. On and after July first, nineteen hundred ninety-
six, "recycled product" shall mean, for the purposes of this [section] SUBDIVISION, any product which is manufactured from secondary materials, as defined in subdivision one of section two hundred sixty-one of the economic development law, and which meets the requirements of subdivi- sion two of section 27-0717 of the environmental conservation law and regulations promulgated pursuant thereto. For the purpose of this [section] SUBDIVISION, "reasonably competitive" shall mean that the cost of the recycled product does not exceed a cost premium of ten percent above the cost of a comparable product that is not a recycled product or, if at least fifty percent of the secondary materials utilized in the manufacture of that product are generated from the waste stream in New York state, the cost of the recycled product does not exceed a cost premium of fifteen percent above the cost of a comparable product that is not a recycled product. Whenever such officer, board or agency shall purchase or cause the purchase of printing on recycled paper pursuant to this section, he or she shall require the printed material to contain the official state recycling emblem established pursuant to subdivision two of section 27-0717 of the environmental conservation law and regulations promulgat- ed pursuant thereto if such paper has been approved by the department of environmental conservation as satisfying the requirements of such stat- ute and regulations, or, if such paper has not been so approved, require the printed material to include a printed statement which indicates the percentages of pre-consumer and post-consumer recycled material content of such paper. 2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS ARTICLE, WHEN PURCHASING GOODS, SERVICES OR CONSTRUCTION FOR PUBLIC USE THROUGH COMPETITIVE SEALED BIDDING, THE OFFICER, BOARD OR AGENCY OF ANY POLITICAL SUBDIVISION OR OF ANY DISTRICT THEREIN CHARGED WITH THE AWARDING OF PUBLIC CONTRACTS THAT EMPLOYS A PROGRAM TO FOSTER THE PARTICIPATION OF LOCAL BUSINESSES IN PUBLIC PROCUREMENT, MAY AWARD ANY CONTRACT VALUED AT UNDER ONE MILLION DOLLARS TO A PARTICIPANT OF SUCH PROGRAM EVEN IF SUCH PARTICIPANT IS NOT THE LOWEST BIDDER FOR SUCH CONTRACT, PROVIDED, HOWEVER THAT SUCH AWARD MAY ONLY BE MADE TO THE LOWEST BID SUBMITTED BY THE PARTICIPANT THAT IS REASONABLY COMPETITIVE. FOR THE PURPOSE OF THIS SUBDIVISION, "REASONABLY COMPETITIVE" SHALL MEAN THAT THE LOCALLY BASED BUSINESS'S BID DOES NOT EXCEED THE LOWEST BID BY MORE THAN TEN PERCENT. S 2. This act shall take effect on the thirtieth day after it shall have become a law.

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