S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1462
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 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 405 of the laws of 2018, is amended to read as follows:
   §  136-a.  Contracts  for architectural, engineering, INTERIOR DESIGN,
 geological, landscape architecture and surveying services. 1. As used in
 this section: the term "professional firm" shall be defined as any indi-
 vidual or sole proprietorship, partnership, corporation, association  or
 other  legal  entity  permitted  by  law  to practice the professions of
 architecture, engineering, INTERIOR DESIGN, geology, landscape architec-
 ture 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 landscape architecture and/or survey-
 ing services on the basis of demonstrated competence  and  qualification
 for  the  type of professional services required and at fair and reason-
 able fees.
   3. (I) In the  procurement  of  architectural,  engineering,  INTERIOR
 DESIGN,  geological,  landscape architecture and surveying services, the
 requiring state department 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  qualifica-
 tions  and performance data on file with the department. If desired, the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01241-01-1

 A. 1462                             2
 
 requiring state department may conduct discussions with  three  or  more
 professional  firms  regarding  anticipated design concepts and proposed
 methods of approach  to  the  assignment.  The  state  department  shall
 select,  in  order of preference, based upon criteria established by the
 requiring state department, 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  landscape architecture and/or surveying services at compensation
 which the department determines in writing to be fair and reasonable  to
 the  state  of  New  York. In making this decision, the department shall
 take into account the estimated 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  profes-
 sional  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  reasonable-
 ness  of  the  estimated  cost of services to be rendered by the profes-
 sional firm, but rather the department should also consider the  reason-
 ableness 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 professional 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  generally 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  profes-
 sional firm shall be formally terminated. The requiring state department
 shall then undertake negotiations with the second most qualified profes-
 sional  firm. Failing accord with the second most qualified professional
 firm, the department shall formally terminate negotiations. The  requir-
 ing  state  department  shall then undertake negotiations with the third
 most qualified professional firm. Should the requiring state  department
 be  unable to negotiate a satisfactory contract with any of the selected
 professional firms, it shall select  additional  professional  firms  in
 order  of their competence and qualification and it shall continue nego-
 tiations 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
 landscape architecture 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.