S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    48
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by M. of A. CAHILL -- read once and referred to the Committee
   on Governmental Operations
 
 AN  ACT  to  amend the state finance law, in relation to state contracts
   for interior design services
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 136-a of the state finance law, as amended by chap-
 ter 388 of the laws of 2017, is amended to read as follows:
   §  136-a.  Contracts  for architectural, engineering, INTERIOR DESIGN,
 geological and surveying services. 1. As used in this section: the  term
 "professional  firm" shall be defined as any individual or sole proprie-
 torship, partnership, corporation, association  or  other  legal  entity
 permitted  by law to practice the professions of architecture, engineer-
 ing, INTERIOR DESIGN, geology or surveying.
   The term "state department" shall be defined as those state government
 departments, divisions or commissions empowered by the  state  to  enter
 into contractual agreements on behalf of the state of New York.
   2.  It  is  the  policy  of  New York state to negotiate contracts for
 architectural  and/or  engineering  services  AND/OR   INTERIOR   DESIGN
 SERVICES  and/or  geological  and/or  surveying services on the basis of
 demonstrated competence and qualification for the type  of  professional
 services required and at fair and reasonable fees.
   3.  (I)  In  the  procurement  of architectural, engineering, INTERIOR
 DESIGN, geological and surveying services, the requiring  state  depart-
 ment  shall  encourage professional firms engaged in the lawful practice
 of the profession to submit an annual statement  of  qualifications  and
 performance  data.  The  requiring  state  department  for each proposed
 project shall evaluate current statements of qualifications and perform-
 ance data on file with the department. If desired, the  requiring  state
 department may conduct discussions with three or more professional firms
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01945-01-9

 A. 48                               2
 
 regarding  anticipated  design concepts and proposed methods of approach
 to the assignment. The state department shall select, in order of  pref-
 erence,  based  upon criteria established by the requiring state depart-
 ment, no less than three professional firms deemed to be the most highly
 qualified to provide the services required.
   (II)  THE  ANNUAL  STATEMENT  OF  QUALIFICATIONS  FOR  INTERIOR DESIGN
 SERVICES SHALL INCLUDE INFORMATION DEMONSTRATING THAT SUCH SERVICES  ARE
 PROVIDED  BY  AN  INTERIOR DESIGNER POSSESSING CERTIFICATION PURSUANT TO
 ARTICLE ONE HUNDRED SIXTY-ONE OF THE EDUCATION LAW OR PROVIDED UNDER THE
 SUPERVISION OF A CERTIFIED INTERIOR DESIGNER.
   4. The requiring state department shall negotiate a contract with  the
 highest qualified professional firm for architectural and/or engineering
 services  AND/OR  INTERIOR  DESIGN  SERVICES  and/or  geological service
 and/or surveying services at compensation which  the  department  deter-
 mines  in writing to be fair and reasonable to the state of New York. In
 making this decision, the department shall take into account  the  esti-
 mated  value  of  the  services to be rendered, including the costs, the
 scope, complexity, and professional nature thereof. The department shall
 not refuse to negotiate with a  professional  firm  solely  because  the
 ratio  of  the  "allowable  indirect costs" to direct labor costs of the
 professional firm or the hourly labor rate in any labor category of  the
 professional  firm  exceeds a limitation generally set by the department
 in the determination of the reasonableness  of  the  estimated  cost  of
 services to be rendered by the professional firm, but rather the depart-
 ment  should also consider the reasonableness of cost based on the total
 estimated cost of the service of  the  professional  firm  which  should
 include,  among  other things, all the direct labor costs of the profes-
 sional firm for such services plus all "allowable indirect costs," other
 direct costs, and negotiated profit of the professional firm. "Allowable
 indirect costs" of a professional firm are defined as those costs gener-
 ally associated with overhead which cannot  be  specifically  identified
 with  a  single  project  or  contract and are considered reasonable and
 allowable under specific state contract or allowability  limits.  Should
 the  requiring  state  department  be unable to negotiate a satisfactory
 contract with the professional firm considered to be the most qualified,
 at a fee the department determines to be  fair  and  reasonable  to  the
 state  of  New  York,  negotiations with that professional firm shall be
 formally terminated. The requiring state department shall then undertake
 negotiations with the second most qualified professional  firm.  Failing
 accord  with the second most qualified professional firm, the department
 shall formally terminate negotiations. The  requiring  state  department
 shall  then undertake negotiations with the third most qualified profes-
 sional firm. Should the requiring state department be unable to  negoti-
 ate a satisfactory contract with any of the selected professional firms,
 it  shall  select additional professional firms in order of their compe-
 tence and qualification and it shall continue negotiations in accordance
 with this section until an agreement is reached.
   5. This legislation shall only apply to engineering  and/or  architec-
 tural  services AND/OR INTERIOR DESIGN SERVICES and/or geological and/or
 surveying services in excess of twenty-five thousand dollars.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.