NY State Senate Bill 2009-S274

Senate Bill S274

2009-2010 Legislative Session

Increases the threshholds for local contracts which must be awarded to the lowest responsible bidder

download bill text pdf

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to local government
Jan 07, 2009	referred to local government

2009-S274 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §103, Gen Muni L

2009-S274 (ACTIVE) - Summary

Increases the thresholds to $50,000 for public works contracts and to $20,000 for purchase contracts, for which a locality must advertise and award to the lowest responsible bidder; authorizes the awarding of service contracts based on the basis of best value; authorizes cooperative purchasing of information technology and telecommunications hardware, software and professional services; authorizes cooperative purchases of goods.

2009-S274 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S274

 TITLE OF BILL :
An act to amend the general municipal law, in relation to the awarding
of contracts, payments by contractors to subcontractors and local
government procurement practices



 PURPOSE :
To give local governments more flexibility with respect to contracts.

 SUMMARY OF PROVISIONS :
Section one - amends subdivision 1 of section 103 of the general
municipal law, as amended by chapter 741 of the laws of 2005 to make
permanent the existing authorization to use electronic bidding tools
and to raise the competitive bidding thresholds from $10,000 to
$20,000 for commodities and from $20,000 to $50,000 for public works
projects.

Section two - adds three new subdivisions 1-b, 1-c and 16 of section
103 of the general municipal law to allow contracts for services to be
awarded on the basis of "best value" rather than lowest bid; to allow
for purchasing of information technology products and services through
cooperative purchasing under the federal general services
administration information technology schedule 70 or successor

schedules; and to allow localities to purchase materials, equipment
and supplies through certain contracts let by other states and local
governments.

Section three - contains the effective date.

 JUSTIFICATION :
This legislation will provide fiscal relief and increased operational
flexibility for local governments by:
(1) making permanent the existing authorization to use electronic
bidding tools;
(2) increasing the competitive bidding thresholds from $10,000 to
$20,000 for commodities and from $20,000 to $50,000 for public works
projects;
(3) allowing contracts for services to be awarded on the basis of
"best value" rather than lowest bid;
(4) allowing purchasing of information technology products and
services through cooperative purchasing under the federal General
Services Administration Information Technology Schedule 70 or
successor schedules; and
(5) allowing localities to purchase materials, equipment and supplies
through. certain contracts let by other states and local governments.

 LEGISLATIVE HISTORY :
2008: S.7658 Passed Senate - This legislation was also included in the
legislation was included in the 2009-09 Executive budget.

 FISCAL IMPLICATIONS :
None to the State.

 LOCAL FISCAL IMPLICATIONS :
This legislation would provide fiscal relief and increased operational
flexibility for local governments.

 EFFECTIVE DATE :
This act shall take effect immediately provided 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.

2009-S274 (ACTIVE) - Bill Text download pdf

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

                                   274

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen.  LITTLE -- 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  the  awarding
  of  contracts,  payments  by  contractors  to subcontractors and local
  government procurement practices

  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 741 of the laws of 2005, 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  [twenty]  FIFTY  thousand dollars and all purchase contracts
involving an expenditure of more than  [ten]  TWENTY  thousand  dollars,
shall  be awarded by the appropriate officer, board or agency of a poli-
tical 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
subdivision, 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  its discretion, reject all bids and readvertise for new bids in
the manner provided by this  section.  For  purposes  of  this  section,
"sealed bids", as that term applies to purchase contracts, shall include

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

                                                           LBD00972-01-9

S. 274                              2

bids  submitted  in  an  electronic  format, 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  not,  however,  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 poli-
tical 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 promulgated and  guidelines  developed  there-
under  and, at a minimum, must (a) document the time and date of receipt
of each bid received electronically; (b) authenticate  the  identity  of
the  sender; (c) ensure the security of the information transmitted; and
(d) ensure the confidentiality of the bid until the time and date estab-
lished 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  responsi-
bility  solely of each bidder or prospective bidder. No political subdi-
vision 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.
  S 2. Section 103 of the general municipal law  is  amended  by  adding
three new subdivisions 1-b, 1-c and 16 to read as follows:
  1-B.    WHEN THE OFFICER, BOARD OR AGENCY OF ANY POLITICAL SUBDIVISION
OR OF ANY DISTRICT THEREIN CHARGED WITH THE AWARDING OF CONTRACTS  UNDER
THIS SECTION DETERMINES THAT IT IS IN THE BEST INTEREST OF THE POLITICAL
SUBDIVISION  OR  DISTRICT THEREIN, THEY MAY AWARD CONTRACTS FOR SERVICES
ON THE BASIS OF BEST VALUE AS DEFINED IN SECTION ONE HUNDRED SIXTY-THREE
OF THE  STATE  FINANCE  LAW  TO  RESPONSIVE  AND  RESPONSIBLE  OFFERERS.
NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS SECTION, A CONTRACT FOR
SERVICES MAY BE AWARDED ON THE BASIS OF BEST  VALUE  PROVIDED  THAT  THE
CONTRACTING  PROCESS  AND  AWARD SHALL COMPLY WITH THE GUIDELINES ESTAB-
LISHED UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW BY
THE STATE PROCUREMENT COUNCIL. ANY PROCUREMENT MADE UNDER THIS  SUBDIVI-
SION SHALL BE APPROVED BY THE GOVERNING BODY OF THE PURCHASING POLITICAL
SUBDIVISION OR DISTRICT THEREIN.
  1-C.  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, WHICHEVER IS APPLICABLE. ADHERENCE TO SUCH PROCEDURE
SHALL CONSTITUTE COMPLIANCE WITH THE  COMPETITIVE  BIDDING  REQUIREMENTS
UNDER THIS SECTION.
  16.  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  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 REQUIREMENTS THAT ARE CONSISTENT WITH  THIS  SECTION

S. 274                              3

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 APPROPRIATE, UPON
ADVICE OF ITS COUNSEL, THAT THE REQUIREMENTS OF  THIS  SUBDIVISION  HAVE
BEEN  MET,  AND  SHALL  CERTIFY,  BY  RESOLUTION,  THAT SUCH PURCHASE IS
PERMITTED UNDER THE PROCUREMENT POLICIES AND PROCEDURES OF THE POLITICAL
SUBDIVISION OR DISTRICT, ADOPTED PURSUANT TO SECTION ONE HUNDRED  FOUR-B
OF THIS ARTICLE.
  S  3.  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 of such
subdivision and shall be deemed to expire therewith.

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