senate Bill S2055A

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
view actions

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:
A5307A
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:S2055A

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, 2014 and March 31, 2018.

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 2012-2013
state 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) 06/01/12- 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 01/01/13-
12/31/13 Referred to Local Gov.

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--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 10, 2013
                               ___________

Introduced  by  Sens.  LATIMER, DILAN, SAMPSON -- read twice and ordered
  printed, and when printed to be committed to the  Committee  on  Local
  Government  --  recommitted  to  the  Committee on Local Government in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05128-02-4

S. 2055--A                          2

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.
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

S. 2055--A                          3

FOURTEEN,  AND  ENDING  MARCH  THIRTY-FIRST,  TWO THOUSAND EIGHTEEN, 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
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 EIGHTEEN. IN ADDITION, SUCH MUNICIPALITIES MAY CONDUCT UP TO TWENTY
REVERSE AUCTIONS THROUGH ELECTRONIC MEANS, PRIOR  TO  APRIL  FIRST,  TWO
THOUSAND  EIGHTEEN.    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  EIGHTEEN,  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  EIGHTEEN,
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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