senate Bill S4133A

Relates to purchasing through the office of general services

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 21 / Mar / 2011
    • REFERRED TO LOCAL GOVERNMENT
  • 04 / May / 2011
    • 1ST REPORT CAL.539
  • 09 / May / 2011
    • 2ND REPORT CAL.
  • 10 / May / 2011
    • ADVANCED TO THIRD READING
  • 23 / May / 2011
    • AMENDED ON THIRD READING (T) 4133A
  • 14 / Jun / 2011
    • PASSED SENATE
  • 14 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 14 / Jun / 2011
    • REFERRED TO WAYS AND MEANS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO LOCAL GOVERNMENT

Summary

Relates to purchasing through the office of general services.

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Bill Details

See Assembly Version of this Bill:
A8255
Versions:
S4133
S4133A
Legislative Cycle:
2011-2012
Current Committee:
Senate Local Government
Law Section:
General Municipal Law
Laws Affected:
Amd §§103 & 104, Gen Muni L; amd §408-a, County L

Sponsor Memo

BILL NUMBER:S4133A

TITLE OF BILL:
An act
to amend the general municipal law and the county law,
in relation to purchases through the office of general services

PURPOSE:
To provide localities flexibility in procurement for goods and services.

SUMMARY OF PROVISIONS:
Section 1. Allows localities, upon resolution from their respective
legislative bodies, to authorize procurement bids to be submitted in
electronic format.

Section 2. Removes the prohibition for localities to enter into
contracts for services including labor.

Section 3. Allows localities to piggyback onto any state or local
contract, or federal information technology contract, provided they
conform with wage and competitive bidding requirements. Requires
locality to assert such conformity through a legislative resolution.

Section 4. Allows localities to piggyback onto federal information
technology and law enforcement equipment contracts.

Section 5. Provides counties flexibility in piggybacking on other
localities' services.

Section G. Enacting clause. To be effective immediately.

JUSTIFICATION:
In this difficult time of shrinking revenues and growing deficits,
local governments across New York must have the flexibility to
realize savings through shared contracts and services. By working
together, as well as with state and federal agencies, local
governments can earn better rates on goods, services and technology
than by working alone.

Currently, any locality working to streamline their procurement
process faces a number of roadblocks. State and federal agency
contracts, whose high-volume purchasing earns better rates than any
locality can hope to achieve, are often off-limits. Services
including labor also pose a serious problem to any government seeking
purchasing "power in numbers." New York is also one of the only two
states to forbid its local governments from utilizing federal
Government services Administration contracts. And localities must
carry out a time and labor-intensive procurement process for any
purchase over a certain threshold ($10.000 for commodities and
$20,000 for public works), no matter how routine such purchases may be.

With this legislation, local governments will be able to easily
achieve "economies of scale" savings, as well to harness the ability
to secure goods and services that a nearby town or county may already
be on contract for. They will be also be able to use an electronic


bid format to cut some of the indirect costs associated with the
bidding process.

Most importantly, this bill does not mandate any procurement process,
nor does it forego the critical vetting to ensure that contracts all
are awarded competitively and conform to state labor and wage
requirements. Instead, it adds another set of tools for local
governments to utilize to achieve savings on behalf of their
taxpayers. By cutting their procurement expenses, local governments
may be able to forego the need to raise taxes or cut vital services.
In today's world, these are tools we can no longer afford to deny
our local governments.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None to the state. Possible economies-of-scale savings through joint
purchases with localities.

LOCAL FISCAL IMPLICATIONS:
Significant savings through economies-of-scale purchases and more
flexible procurement procedures.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4133--A
    Cal. No. 539

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 21, 2011
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading,  amended  and  ordered  reprinted,
  retaining its place in the order of third reading

AN  ACT  to  amend  the  general  municipal  law  and the county law, in
  relation to purchases through the office of general services

  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 section 1 of part FF of chapter 56 of the laws of 2010, 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  thirty-five  thousand  dollars  and  all  purchase  contracts
involving  an expenditure of more than twenty thousand dollars, shall be
awarded by the appropriate officer,  board  or  agency  of  a  political
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 subdivi-
sion, 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 her
or its discretion, reject all bids and readvertise for new bids  in  the
manner provided by this section. In determining whether a purchase is an

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10269-02-1

S. 4133--A                          2

expenditure  within  the  discretionary threshold amounts established by
this subdivision, the officer, board or agency of a  political  subdivi-
sion  or  of any district therein shall consider the reasonably expected
aggregate  amount  of all purchases of the same commodities, services or
technology to be made within the twelve-month period commencing  on  the
date  of  purchase.    Purchases  of commodities, services or technology
shall not be artificially divided for  the  purpose  of  satisfying  the
discretionary  buying  thresholds  established  by  this  subdivision. A
change to or a renewal of a discretionary purchase shall not be  permit-
ted  if the change or renewal would bring the reasonably expected aggre-
gate amount of all purchases of the same commodities, services or  tech-
nology  from the same provider within the twelve-month period commencing
on the date of the first purchase to an amount greater than the  discre-
tionary  buying  threshold amount. For purposes of this section, "sealed
bids", as that term applies to purchase contracts,  shall  include  bids
submitted  in an electronic format including submission of the statement
of non-collusion required by section one hundred three-d of  this  arti-
cle,  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, [for technology contracts
only,] 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 political 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 promul-
gated  and  guidelines  developed thereunder and, at a minimum, must (a)
document the time and date of receipt of  each  bid  received  electron-
ically;  (b)  authenticate  the  identity  of the sender; (c) ensure the
security of the information transmitted; and (d)  ensure  the  confiden-
tiality  of  the bid until the time and date established 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  responsibility  solely  of  each
bidder or prospective bidder. No political subdivision or district ther-
ein  shall  incur  any  liability from delays of or interruptions in the
receiving device designated for the submission and receipt of electronic
bids.
  S 2. Subdivision 3 of section 103 of the  general  municipal  law,  as
amended  by  chapter  343  of  the  laws  of 2007, is amended to read as
follows:
  3. Notwithstanding the provisions of subdivision one of this  section,
any  officer,  board  or  agency  of  a  political subdivision or of any
district therein authorized to make purchases of materials, equipment or
supplies, or to contract for services, may make such purchases,  or  may
contract  for services, [other than services subject to article eight or
nine of the labor law,] when available, through the county in which  the
political subdivision or district is located or through any county with-
in  the  state  subject to the rules established pursuant to subdivision
two of section four hundred eight-a of the county law; provided that the
political subdivision or district for which such officer, board or agen-
cy acts shall accept sole responsibility for any payment due the  vendor
or  contractor.  All purchases and all contracts for such services shall
be subject to audit and  inspection  by  the  political  subdivision  or
district for which made. Prior to making such purchases or contracts the
officer,  board  or  agency  shall  consider whether such contracts will
result in cost savings after all factors, including charges for service,

S. 4133--A                          3

material, and delivery, have been considered. No officer, board or agen-
cy of a political subdivision or of any district therein shall make  any
purchase  or  contract for any such services through the county in which
the  political  subdivision or district is located or through any county
within the state when bids have been received for such purchase or  such
services  by  such officer, board or agency, unless such purchase may be
made or the contract for such services may be entered into upon the same
terms, conditions and specifications at a lower price through the  coun-
ty.
  S 3. Section 103 of the general municipal law is amended by adding two
new subdivisions 1-b and 14 to read as follows:
  1-B.  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 OR SUCCESSOR REGULATIONS,  WHICHEVER  IS  APPLICABLE.
ADHERENCE  TO  SUCH  PROCEDURES  SHALL  CONSTITUTE  COMPLIANCE  WITH THE
COMPETITIVE BIDDING REQUIREMENTS UNDER THIS SECTION.
  14. 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 SERVICES, 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 AND WAGE REQUIREMENTS THAT ARE CONSISTENT  WITH
THIS  SECTION  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 APPROPRI-
ATE, UPON ADVICE OF ITS COUNSEL, THAT THE REQUIREMENTS OF THIS  SUBDIVI-
SION HAVE BEEN MET, AND SHALL CERTIFY, BY RESOLUTION, THAT SUCH PURCHASE
IS  PERMITTED UNDER THE PROCUREMENT POLICIES AND PROCEDURES OF THE POLI-
TICAL SUBDIVISION OR DISTRICT, ADOPTED PURSUANT TO SECTION  ONE  HUNDRED
FOUR-B OF THIS ARTICLE.
  S  4.  Section 104 of the general municipal law, as amended by chapter
137 of the laws of 2008, is amended to read as follows:
  S 104. Purchase through office of general  services;  CERTAIN  FEDERAL
CONTRACTS.  1.  Notwithstanding  the  provisions  of section one hundred
three of this article or of any other general, special or local law, any
officer, board or agency of a political subdivision, of a district ther-
ein, of a fire company or of a voluntary ambulance service authorized to
make purchases of materials, equipment, food products, or  supplies,  or
services  available  pursuant  to sections one hundred sixty-one and one
hundred sixty-seven of the state finance law, may make  such  purchases,
except  of  printed  material,  through  the  office of general services
subject to such rules as may be established from time to  time  pursuant
to  sections  one hundred sixty-three and one hundred sixty-seven of the
state finance law [or through the general services administration pursu-
ant to section 1555 of the federal acquisition streamlining act of 1994,

S. 4133--A                          4

P.L. 103-355]; provided that any such purchase shall exceed five hundred
dollars and that the political subdivision, district,  fire  company  or
voluntary ambulance service for which such officer, board or agency acts
shall  accept  sole  responsibility  for any payment due the vendor. All
purchases shall be subject to audit  and  inspection  by  the  political
subdivision,  district,  fire company or voluntary ambulance service for
which made. No officer, board or agency of a political subdivision, or a
district therein, of a fire company or of a voluntary ambulance  service
shall make any purchase through such office when bids have been received
for such purchase by such officer, board or agency, unless such purchase
may  be  made  upon  the  same terms, conditions and specifications at a
lower price through such office. Two or more fire companies or voluntary
ambulance services  may  join  in  making  purchases  pursuant  to  this
section,  and  for  the  purposes  of  this section such groups shall be
deemed "fire companies or voluntary ambulance services."
  2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS
ARTICLE OR OF ANY OTHER GENERAL, SPECIAL  OR  LOCAL  LAW,  ANY  OFFICER,
BOARD  OR  AGENCY  OF A POLITICAL SUBDIVISION, OR OF A DISTRICT THEREIN,
MAY MAKE PURCHASES FROM FEDERAL GENERAL  SERVICE  ADMINISTRATION  SUPPLY
SCHEDULES  PURSUANT  TO  SECTION  211 OF THE FEDERAL E-GOVERNMENT ACT OF
2002, P.L. 107-347, AND PURSUANT TO SECTION 1122 OF THE NATIONAL DEFENSE
AUTHORIZATION ACT FOR FISCAL YEAR 1994, P.L. 103-160, OR  ANY  SUCCESSOR
SCHEDULES  IN  ACCORDANCE  WITH PROCEDURES ESTABLISHED PURSUANT THERETO.
PRIOR TO MAKING SUCH  PURCHASES  THE  OFFICER,  BOARD  OR  AGENCY  SHALL
CONSIDER  WHETHER  SUCH  PURCHASES WILL RESULT IN COST SAVINGS AFTER ALL
FACTORS, INCLUDING CHARGES FOR SERVICE,  MATERIAL,  AND  DELIVERY,  HAVE
BEEN CONSIDERED.
  S  5.  Subdivision 2 of section 408-a of the county law, as amended by
section 2 of part X of chapter 62 of the laws of  2003,  is  amended  to
read as follows:
  2.  The board of supervisors may, in the case of any purchase contract
or any contract for services, [other than services  subject  to  article
eight  or  nine  of  the  labor law,] of the county to be awarded to the
lowest responsible bidder after advertisement for  bids,  authorize  the
inclusion  of a provision whereby purchases may be made or such services
may be obtained under such contract by any political subdivision or fire
company (as both are defined in  section  one  hundred  of  the  general
municipal  law)  or district. In such event, the board shall adopt rules
prescribing the  conditions  under  which,  and  the  manner  in  which,
purchases  may  be  made  or  services may be obtained by such political
subdivision, fire company or district.
  S 6. This act shall take effect immediately; provided,  however,  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.

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