senate Bill S2055

Amended

Relates to the submission of electronic bids in the awarding of certain contracts in certain municipalities

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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

  • 10 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 13 / Jan / 2014
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 13 / Jan / 2014
    • PRINT NUMBER 2055A

Summary

Relates to the submission of electronic bids in the awarding of certain contracts in the village of Port Chester and the city of New Rochelle.

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Bill Details

See Assembly Version of this Bill:
A5307
Versions:
S2055
S2055A
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
General Municipal Law
Laws Affected:
Amd §103, Gen Muni L
Versions Introduced in 2011-2012 Legislative Cycle:
S7511, A10528

Sponsor Memo

BILL NUMBER:S2055

TITLE OF BILL: An act to amend the general municipal law, in relation
to letting of certain contracts

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to
authorize a pilot program for the Village of Port Chester and the City
of New Rochelle to jointly conduct bidding for commodities, services
and technology contracts electronically, and to conduct a limited
number of reverse auctions for such municipal contracts

SUMMARY OF SPECIFIC PROVISIONS: This bill would authorize a pilot
program for the Village of Port Chester and the City of New Rochelle
to jointly conduct cooperative electronic bidding for commodities,
services, technology contracts and reverse auctions for such
contracts. No more than 50 contracts would be authorized between June
1, 2013 and March 31, 2017.

Within thirty days of conducting the last auction the Chief Financial
officers of Port Chester and the City of New Rochelle would be
required to submit a report to the respective legislatures assessing
the use of electronic submissions and recommendations regarding the
use of the procurement method.

EXISTING LAW: Article 5A, subdivision 1 of section 103 of municipal
Law is amended to include this provision.

JUSTIFICATION: Municipalities are seeking ways to increase efficiency
and reduce costs. One simple method of furthering achieving this end
would be to allow municipalities to only accept bids electronically.
While municipalities may currently receive electronic bids the
submission of bids in electronic format cannot be required as the sole
method for submission of bids, and paper bids must still be accepted.

The purpose of this legislation is to authorize a pilot program for
the Village of Port Chester and the City of New Rochelle to conduct a
limited number of electronic bids for commodity, service and
technology contracts. The program would require a report and
recommendations regarding the pilot program to determine if savings
could be realized by conducting electronic bidding. Port Chester and
New Rochelle would be authorized to jointly conduct a limited number
of electronic bids for commodity, service and technology contracts.
The total number of electronic bids would be limited to 50 electronic
bids and 20 reverse auctions through electronic means.

This pilot program mirrors a pilot program authorized in the
2012-2013state budget authorizing the Office of General Services to
conduct a pilot program for electronic bidding only for certain state
contract. Under the proposed pilot program all existing minimum
requirements for competitive bidding remain the same (e.g.
"advertising in the official newspapers, public opening of bids etc").
In addition, any method used to receive electronic bids must also
comply with article 3 of the "State Technology Law' (the "Electronic
Signatures and Records Act") and related regulations.

PRIOR LEGISLATIVE HISTORY:


(Latimer) 06/01112- referred to local governments 06/20/12- reported
referred to ways and means 06/20/12- reported referred to rules

(Oppenheimer) 05/30/12- REFERRED TO CONSUMER PROTECTION

FISCAL IMPLICATIONS: None to the state

LOCAL FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately upon becoming
law

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

                                  2055

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 10, 2013
                               ___________

Introduced  by  Sen. LATIMER -- 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  letting  of
  certain contracts

  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  2  of  the laws of 2012, 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, provided,  however,  that  purchase  contracts
(including  contracts  for  service  work,  but  excluding  any purchase
contracts necessary for the completion of a public works contract pursu-
ant to article eight of the labor law) may be awarded on  the  basis  of
best  value,  as defined in section one hundred sixty-three of the state
finance law, to a responsive and responsible bidder or  offerer  in  the
manner  provided  by this section except that in a political subdivision
other than a city with a population of one million inhabitants  or  more
or  any  district, board or agency with jurisdiction exclusively therein
the use of best value for  awarding  a  purchase  contract  or  purchase
contracts  must be authorized by local law or, in the case of a district
corporation,  school  district  or  board  of  cooperative   educational
services, by rule, regulation or resolution adopted at a public meeting.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05128-01-3

S. 2055                             2

In  any case where a responsible bidder's or responsible offerer'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 best value.   In cases where  two  or
more responsible bidders furnishing the required security submit identi-
cal  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 or offers and readvertise
for new bids or offers in the manner provided by this section. In deter-
mining whether a purchase is an  expenditure  within  the  discretionary
threshold amounts established by this subdivision, the officer, board or
agency  of  a  political  subdivision  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 estab-
lished by this subdivision. A change to or a renewal of a  discretionary
purchase shall not be permitted if the change or renewal would bring the
reasonably  expected  aggregate  amount  of  all  purchases  of the same
commodities, services or technology from the same  provider  within  the
twelve-month  period  commencing on the date of the first purchase to an
amount greater than  the  discretionary  buying  threshold  amount.  For
purposes  of  this  section,  "sealed bids" and "sealed offers", as that
term applies to purchase contracts,  (including  contracts  for  service
work,  but excluding any purchase contracts necessary for the completion
of a public works contract pursuant to article eight of the  labor  law)
shall  include bids and offers submitted in an electronic format includ-
ing submission of the statement of non-collusion required by section one
hundred three-d of this article, provided that the  governing  board  of
the political subdivision or district, by resolution, has authorized the
receipt  of  bids  and  offers  in such format. Submission in electronic
format may, for technology contracts only, be required as the sole meth-
od for the submission of bids and offers. Bids and offers  submitted  in
an electronic format shall be transmitted by bidders and offerers to the
receiving  device  designated  by the political subdivision or district.
Any method used to receive electronic bids and offers shall comply  with
article three of the state technology law, and any rules and regulations
promulgated  and guidelines developed thereunder and, at a minimum, must
(a) document the time and date of receipt of each bid and offer received
electronically; (b) authenticate the identity of the sender; (c)  ensure
the  security  of the information transmitted; and (d) ensure the confi-
dentiality of the bid or offer until the time and date  established  for
the  opening  of  bids or offers. The timely submission of an electronic
bid  or  offer  in  compliance  with  instructions  provided  for   such
submission in the advertisement for bids or offers and/or the specifica-
tions  shall  be  the responsibility solely of each bidder or offerer or
prospective bidder or offerer.  No  political  subdivision  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  and offers.   DURING THE PERIOD BEGINNING JUNE FIRST, TWO THOUSAND
THIRTEEN, AND ENDING MARCH THIRTY-FIRST,  TWO  THOUSAND  SEVENTEEN,  THE
VILLAGE  OF  PORT  CHESTER  AND THE CITY OF NEW ROCHELLE, IN WESTCHESTER
COUNTY MAY, FOR COMMODITY,  SERVICE  AND  TECHNOLOGY  CONTRACTS  REQUIRE
ELECTRONIC  SUBMISSION AS THE SOLE METHOD FOR THE SUBMISSION OF BIDS FOR

S. 2055                             3

THE SOLICITATION. SUCH MUNICIPALITIES  SHALL,  DURING  THE  STATED  TIME
PERIOD,  UNDERTAKE NO MORE THAN FIFTY SUCH ELECTRONIC BID SOLICITATIONS,
NONE OF WHICH SHALL BE REVERSE AUCTIONS, PRIOR TO APRIL FIRST, TWO THOU-
SAND SEVENTEEN. IN ADDITION, SUCH MUNICIPALITIES MAY CONDUCT UP TO TWEN-
TY  REVERSE AUCTIONS THROUGH ELECTRONIC MEANS, PRIOR TO APRIL FIRST, TWO
THOUSAND SEVENTEEN.   PRIOR TO REQUIRING THE  ELECTRONIC  SUBMISSION  OF
BIDS,  THE  CHIEF  FISCAL  OFFICERS  OF THE CITY OF NEW ROCHELLE AND THE
VILLAGE OF PORT CHESTER SHALL MAKE A DETERMINATION, WHICH SHALL BE DOCU-
MENTED IN THE PROCUREMENT RECORD, THAT ELECTRONIC SUBMISSION  AFFORDS  A
FAIR  AND  EQUAL  OPPORTUNITY  FOR OFFERERS TO SUBMIT RESPONSIVE OFFERS.
WITHIN THIRTY DAYS OF THE COMPLETION  OF  THE  FIFTIETH  ELECTRONIC  BID
SOLICITATION,  OR  BY  APRIL FIRST, TWO THOUSAND SEVENTEEN, WHICHEVER IS
EARLIER, THE CHIEF FISCAL OFFICERS OF THE CITY OF NEW ROCHELLE  AND  THE
VILLAGE  OF PORT CHESTER SHALL PREPARE AND ISSUE REPORTS TO THE LEGISLA-
TURE ASSESSING THE USE OF ELECTRONIC SUBMISSIONS  AND  MAKE  RECOMMENDA-
TIONS  REGARDING  FUTURE  USE  OF  THIS PROCUREMENT METHOD. IN ADDITION,
WITHIN THIRTY DAYS OF THE COMPLETION OF THE  TWENTIETH  REVERSE  AUCTION
THROUGH  ELECTRONIC  MEANS,  OR  BY APRIL FIRST, TWO THOUSAND SEVENTEEN,
WHICHEVER IS EARLIER, THE CHIEF FISCAL  OFFICERS  OF  THE  CITY  OF  NEW
ROCHELLE AND THE VILLAGE OF PORT CHESTER SHALL PREPARE AND ISSUE REPORTS
TO  THE  LEGISLATURE ASSESSING THE USE OF REVERSE AUCTIONS THROUGH ELEC-
TRONIC MEANS AND MAKE  RECOMMENDATIONS  REGARDING  FUTURE  USE  OF  THIS
PROCUREMENT  METHOD.    SUCH  REPORTS SHALL BE PUBLISHED ON THE OFFICIAL
WEBSITES OF THE RESPECTIVE MUNICIPALITIES AND SHALL  BE  PROVIDED  ELEC-
TRONICALLY  TO  THE  CHAIR OF THE SENATE FINANCE COMMITTEE, THE ASSEMBLY
WAYS AND MEANS COMMITTEE AND THE COMMISSIONER OF THE OFFICE  OF  GENERAL
SERVICES.
  S  2. 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 and reversion
of such subdivision and shall expire therewith.

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