NY State Senate Bill 2009-S3531

Senate Bill S3531

2009-2010 Legislative Session

Requires public authorities to negotiate with most qualified architectural and engineering professional firms before negotiating with other firms

download bill text pdf

Archive: Last Bill Status Via A7056 - In Senate Committee Rules 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
Mar 04, 2010	referred to finance delivered to senate passed assembly
Jan 06, 2010	ordered to third reading cal.466 returned to assembly died in senate
Jul 16, 2009	recommitted to rules 3rd reading cal.910 substituted for s3531b
Jun 15, 2010	reported and committed to rules
Jan 26, 2010	reported and committed to finance
Jan 06, 2010	referred to corporations, authorities and commissions
Jul 16, 2009	substituted by a7056b ordered to third reading cal.910 committee discharged and committed to rules
Jul 14, 2009	print number 3531b
Jul 14, 2009	amend and recommit to finance
May 07, 2009	print number 3531a
May 07, 2009	amend and recommit to finance
Apr 29, 2009	reported and committed to finance
Mar 24, 2009	referred to corporations, authorities and commissions

Votes

- Jul 16, 2009 - Rules Committee Vote
  S3531
  
  20
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jul 16, 2009
      
      aye (20)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hassell-Thompson
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Monserrate
      
      Montgomery
      
      Padavan
      
      Parker
      
      Serrano
      
      Seward
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      aye wr (3)
      
      Hannon
      
      Saland
      
      Skelos
      
      excused (1)
      
      Johnson
  Jun 15, 2010 - Finance Committee Vote
  S3531
  
  20
  
  Aye
  
  0
  
  Nay
  
  13
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: Jun 15, 2010
      
      aye (20)
      
      Breslin
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Klein
      
      Krueger
      
      Kruger
      
      Maziarz
      
      Montgomery
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Saland
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      aye wr (13)
      
      DeFrancisco
      
      Farley
      
      Hannon
      
      Johnson
      
      LaValle
      
      Larkin
      
      Leibell
      
      Marcellino
      
      Nozzolio
      
      Padavan
      
      Robach
      
      Seward
      
      Volker
  Jan 26, 2010 - Corporations, Authorities And Commissions Committee Vote
  S3531
  
  4
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: Jan 26, 2010
      
      aye (4)
      
      Dilan
      
      Larkin
      
      Monserrate
      
      Perkins
      
      aye wr (2)
      
      Ranzenhofer
      
      Squadron

Bill Amendments

Original

B (Active)

2009-S3531 - Details

Current Committee:: Senate Rules
Laws Affected:: Amd §2879, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1363
2013-2014: S414, S6639
2015-2016: S4475
2017-2018: S5600
2019-2020: S5115
2021-2022: S5713
2023-2024: S8122
2025-2026: S4577

2009-S3531 - Summary

Requires public authorities and public benefit corporations to negotiate with professional firms providing architectural or engineering services in order from the most qualified to the least qualified with regard to the provision of services to the authority or corporation.

2009-S3531 - Sponsor Memo

                                 BILL NUMBER:  S3531

 TITLE OF BILL :
An act to amend the public authorities law, in relation to requiring
public authorities and public benefits corporations to negotiate with
professional firms providing architectural or engineering services in
order from the most qualified to the least qualified with regard to
the provision of services to the authority or corporation


 PURPOSE OF THE BILL :
This bill would require public authorities to negotiate with the most
qualified architectural and engineering professional firms before
negotiating with other firms.

 SUMMARY OF PROVISIONS :
§ 1-Amends § 2879 of the Public Authorities Law by adding a new
subdivision 10.

§ 2-Effective date.

 JUSTIFICATION :
The intent of this bill is to ensure that public authorities and
public benefit corporations receive the services of the most qualified
contractor through the establishment of a new mechanism for the
procurement of engineering, architectural and surveying services.

Qualifications Based Selections (QBS) is a procurement process that is
used widely throughout the country and has recently been adopted by
New York City. Instead of cost-based procurement which focuses
primarily on price, QBS procurement focuses on qualifications and
experience as the paramount basis for selection.  However, after the
highest technically ranked firm is selected and the project scope is
fully defined, QBS generates a realistic fee based on a fee proposal
by the consultant and negotiations with the agency. If an agency
cannot negotiate a fair price with the first choice consultant, it has
the option to negotiate with the next highly qualified consultant, and
so on. QBS allows agencies to select the design firm with the best
experience, capabilities, technical approach and quality of personnel,
matched to the needs of the project and the agency; generates better
plans and specifications, resulting in higher quality contract
documents that make bidding on and carrying out construction easier;
fosters the development of innovative, cost-effective design solutions
at a fair market value, resulting in lower overall project costs; and
generates design solutions that best meet the needs of the project,
emphasizing public health, safety and quality of life.  QBS is
mandated in at least 46 other states and has proven to be an effective
procurement tool. QBS generates competition by bringing more firms
into the bidding process. As a result, owners are ensured a better
project and a savings to the taxpayer.

 LEGISLATIVE HISTORY :
Same as 2008: A.11204/S.8305.
Similar to 2007: A.5933/S.2162 (Veto Message 93); 2005-2006:
A.5672-A/S.1894-A; 2003-2004: A.11880/S.7776 and A.6028/S.3908 (Veto
Message 245).

 FISCAL IMPLICATIONS :
Should result in cost savings for the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S3531 - Bill Text download pdf

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

                                  3531

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 24, 2009
                               ___________

Introduced  by  Sens.  DILAN,  DIAZ,  HUNTLEY, ONORATO, THOMPSON -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Corporations, Authorities and Commissions

AN  ACT  to  amend  the public authorities law, in relation to requiring
  public authorities and public benefits corporations to negotiate  with
  professional  firms providing architectural or engineering services in
  order from the most qualified to the least qualified  with  regard  to
  the provision of services to the authority or corporation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2879 of the public authorities law  is  amended  by
adding a new subdivision 10 to read as follows:
  10.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, EVERY CORPO-
RATION SHALL NEGOTIATE A CONTRACT WITH  THE  HIGHEST  QUALIFIED  PROFES-
SIONAL FIRM FOR ARCHITECTURAL AND/OR ENGINEERING SERVICES AND/OR SURVEY-
ING  SERVICES  AND/OR  LANDSCAPE  ARCHITECTURAL SERVICES AT COMPENSATION
WHICH THE CORPORATION DETERMINES IN WRITING TO BE FAIR AND REASONABLE TO
SUCH CORPORATION. IN MAKING THIS DECISION, THE  CORPORATION  SHALL  TAKE
INTO ACCOUNT THE ESTIMATED VALUE OF THE SERVICES TO BE RENDERED, INCLUD-
ING  THE  COSTS,  THE SCOPE, COMPLEXITY AND PROFESSIONAL NATURE THEREOF.
THE CORPORATION SHALL NOT REFUSE TO NEGOTIATE WITH A  PROFESSIONAL  FIRM
SOLELY  BECAUSE  THE  RATION OF THE "ALLOWABLE INDIRECT COSTS" TO DIRECT
LABOR COSTS OF THE PROFESSIONAL FIRM EXCEEDS A LIMITATION GENERALLY  SET
BY  THE  CORPORATION  IN  THE DETERMINATION OF THE REASONABLENESS OF THE
ESTIMATED COST OF SERVICES TO BE RENDERED BY THE PROFESSIONAL FIRM,  BUT
RATHER  THE  CORPORATION SHALL CONSIDER THE REASONABLENESS OF COST BASED
ON THE TOTAL ESTIMATED COST OF THE  SERVICE  OF  THE  PROFESSIONAL  FIRM
WHICH  SHALL  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10454-01-9

S. 3531                             2

THOSE  COSTS  GENERALLY ASSOCIATED WITH OVERHEAD WHICH CANNOT BE SPECIF-
ICALLY IDENTIFIED WITH A SINGLE PROJECT OR CONTRACT AND  ARE  CONSIDERED
REASONABLE  AND  ALLOWABLE UNDER SPECIFIC STATE CONTRACT OR ALLOWABILITY
LIMITS.  SHOULD  THE  CORPORATION  BE UNABLE TO NEGOTIATE A SATISFACTORY
CONTRACT WITH THE PROFESSIONAL FIRM CONSIDERED TO BE THE MOST QUALIFIED,
AT A FEE THE CORPORATION DETERMINES TO BE FAIR  AND  REASONABLE  TO  THE
CORPORATION,  NEGOTIATIONS WITH THAT PROFESSIONAL FIRM SHALL BE FORMALLY
TERMINATED.  THE CORPORATION SHALL THEN UNDERTAKE NEGOTIATIONS WITH  THE
SECOND  MOST QUALIFIED PROFESSIONAL FIRM. FAILING ACCORD WITH THE SECOND
MOST QUALIFIED PROFESSIONAL FIRM, THE CORPORATION SHALL FORMALLY  TERMI-
NATE  NEGOTIATIONS.  THE  CORPORATION  SHALL THEN UNDERTAKE NEGOTIATIONS
WITH THE THIRD MOST QUALIFIED PROFESSIONAL FIRM. SHOULD THE  CORPORATION
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 QUALIFICATIONS AND IT SHALL CONTINUE NEGO-
TIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL AN AGREEMENT IS REACHED.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2009-S3531A - Details

Current Committee:: Senate Rules
Laws Affected:: Amd §2879, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1363
2013-2014: S414, S6639
2015-2016: S4475
2017-2018: S5600
2019-2020: S5115
2021-2022: S5713
2023-2024: S8122
2025-2026: S4577

2009-S3531A - Summary

2009-S3531A - Sponsor Memo

                                 BILL NUMBER:  S3531A

 TITLE OF BILL :
An act to amend the public authorities law, in relation to requiring
public authorities and public benefits corporations to negotiate with
professional firms providing architectural or engineering services in
order from the most qualified to the least qualified with regard to
the provision of services to the authority or corporation


 PURPOSE OF THE BILL :
This bill would require public authorities to negotiate with the most
qualified architectural and engineering professional firms before
negotiating with other firms.

 SUMMARY OF PROVISIONS :
§ 1-Amends subparagraph (iv) of paragraph (b) of subdivision 3 of §
2879 of the Public Authorities Law.

§ 2-Effective date.

 JUSTIFICATION :
The intent of this bill is to ensure that public authorities and
public benefit corporations receive the services of the most qualified
contractor through the establishment of a new mechanism for the
procurement of engineering, architectural and surveying services.

Qualifications Based Selections (QBS) is a procurement process that is
used widely throughout the country and has recently been adopted by
New York City. Instead of cost-based procurement which focuses
primarily on price, QBS procurement focuses on qualifications and
experience as the paramount basis for selection. However, after the
highest technically ranked firm is selected and the project scope is
fully defined, QBS generates a realistic fee based on a fee proposal
by the consultant and negotiations with the agency. If an agency
cannot negotiate a fair price with the first choice consultant, it has
the option to negotiate with the next highly qualified consultant, and
so on. QBS allows agencies to select the design firm with the best
experience, capabilities, technical approach and quality of personnel,
matched to the needs of the project and the agency; generates better
plans and specifications, resulting in higher quality contract
documents that make bidding on an d carrying out construction easier;
fosters the development of innovative, cost-effective design solutions
at a fair market value, resulting in lower overall project costs; and
generates design solutions that best meet the needs of the project,
emphasizing public health, safety and quality of life.  QBS is
mandated in at least 46 other states and has proven to be an effective
procurement tool. QBS generates competition by bringing more firms
into the bidding process. As a result, owners are ensured a better
project and a savings to the taxpayer.

 LEGISLATIVE HISTORY :
Similar to 2008: A.11204/S.8305.
Similar to 2007: A.5933/S.2162 (Veto Message 93); 2005-2006:
A.5672-A/S.1894-A; 2003-2004: A.11880/S.7776 and A.6028/S.3908 (Veto
Message 245).

 FISCAL IMPLICATIONS :
Should result in cost savings for the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S3531A - Bill Text download pdf

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

                                 3531--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 24, 2009
                               ___________

Introduced  by  Sens.  DILAN,  DIAZ,  HASSELL-THOMPSON,  HUNTLEY, KLEIN,
  KRUEGER, MONSERRATE, ONORATO,  THOMPSON  --  read  twice  and  ordered
  printed,  and  when printed to be committed to the Committee on Corpo-
  rations, Authorities and Commissions -- reported favorably  from  said
  committee  and  committed  to  the  Committee  on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public authorities law,  in  relation  to  requiring
  public  authorities and public benefits corporations to negotiate with
  professional firms providing architectural or engineering services  in
  order  from  the  most qualified to the least qualified with regard to
  the provision of services to the authority or corporation

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraph  (iv)  of  paragraph (b) of subdivision 3 of
section 2879 of the public authorities law, as amended by chapter 383 of
the laws of 1994, is amended to read as follows:
  (iv) as used in this subparagraph, the term "professional firm"  shall
be defined as any individual or sole proprietorship, partnership, corpo-
ration,  association, or other legal entity permitted by law to practice
the professions of architecture, engineering or surveying.
  The corporation 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 corporation in the determination of the reasonableness of the
estimated  cost of services to be rendered by the professional firm, but
rather the corporation 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  professional  firm for such services plus all "allowable

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10454-02-9

S. 3531--A                          2

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.    NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THIS
SECTION, EVERY CORPORATION SHALL NEGOTIATE A CONTRACT WITH  THE  HIGHEST
QUALIFIED   PROFESSIONAL   FIRM  FOR  ARCHITECTURAL  AND/OR  ENGINEERING
SERVICES  AND/OR  SURVEYING  SERVICES  AND/OR  LANDSCAPE   ARCHITECTURAL
SERVICES  AT COMPENSATION WHICH THE CORPORATION DETERMINES IN WRITING TO
BE FAIR AND REASONABLE TO SUCH CORPORATION. IN MAKING THIS DECISION, THE
CORPORATION SHALL TAKE INTO ACCOUNT THE ESTIMATED VALUE OF THE  SERVICES
TO  BE  RENDERED, INCLUDING THE COSTS, THE SCOPE, COMPLEXITY AND PROFES-
SIONAL NATURE THEREOF.  SHOULD THE CORPORATION BE UNABLE TO NEGOTIATE  A
SATISFACTORY  CONTRACT  WITH  THE PROFESSIONAL FIRM CONSIDERED TO BE THE
MOST QUALIFIED, AT A FEE THE  CORPORATION  DETERMINES  TO  BE  FAIR  AND
REASONABLE  TO THE CORPORATION, NEGOTIATIONS WITH THAT PROFESSIONAL FIRM
SHALL BE FORMALLY TERMINATED.   THE  CORPORATION  SHALL  THEN  UNDERTAKE
NEGOTIATIONS  WITH  THE SECOND MOST QUALIFIED PROFESSIONAL FIRM. FAILING
ACCORD WITH THE SECOND MOST QUALIFIED PROFESSIONAL FIRM, THE CORPORATION
SHALL FORMALLY TERMINATE NEGOTIATIONS. THE CORPORATION SHALL THEN UNDER-
TAKE NEGOTIATIONS WITH  THE  THIRD  MOST  QUALIFIED  PROFESSIONAL  FIRM.
SHOULD  THE  CORPORATION  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 QUALIFICATIONS AND
IT SHALL CONTINUE NEGOTIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL  AN
AGREEMENT  IS  REACHED,  PROVIDED,  HOWEVER, THE CORPORATION MAY, IN ITS
DISCRETION, ELECT TO TERMINATE THE PROCUREMENT PROCESS FOR  SUCH  SOLIC-
ITATION  AND NOT AWARD A PROCUREMENT CONTRACT TO ANY FIRM THAT RESPONDED
TO SUCH SOLICITATION, WHICH ELECTION SHALL NOT PROHIBIT THE  CORPORATION
FROM ISSUING A NEW SOLICITATION FOR SUCH SERVICES.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2009-S3531B (ACTIVE) - Details

Current Committee:: Senate Rules
Laws Affected:: Amd §2879, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1363
2013-2014: S414, S6639
2015-2016: S4475
2017-2018: S5600
2019-2020: S5115
2021-2022: S5713
2023-2024: S8122
2025-2026: S4577

2009-S3531B (ACTIVE) - Summary

2009-S3531B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3531B

 TITLE OF BILL :
An act to amend the public authorities law, in relation to requiring
public authorities and public benefits corporations to negotiate with
professional firms providing architectural or engineering services in
order from the most qualified to the least qualified with regard to
the provision of services to the authority or corporation


 PURPOSE OF THE BILL :
This bill would allow public authorities a greater opportunity to
negotiate with the most qualified architectural and engineering
professional firms through annual statements of qualifications and
performance data created by professional firms.

 SUMMARY OF PROVISIONS :
§ 1-Amends subparagraph (iv) of paragraph (b) of subdivision 3 of §
2879 of the public Authorities Law.

§ 2-Effective date.

 JUSTIFICATION :
The intent of this bill is to ensure that public authorities and
public benefit corporations receive the services of the most qualified
contractor through the establishment of a new mechanism for the

procurement of engineering, architectural and surveying services.
Qualifications Based Selections (QBS) is a procurement process that is
used widely throughout the country and has recently been adopted by
New York City. Instead of cost-based procurement which focuses
primarily on price, QBS procurement focuses on qualifications and
experience as the paramount basis for selection. However, after the
highest technically ranked firm is selected and the project scope is
fully defined, QBS generates a realistic fee based on a fee proposal
by the consultant and negotiations with the agency. If an agency
cannot negotiate a fair price with the first choice consultant, it has
the option to negotiate with the next highly qualified consultant, and
so on. QBS allows agencies to select the design firm with the best
experience, capabilities, technical approach and quality of personnel,
matched to the needs of the project and the agency; generates better
plans and specifications, resulting in higher quality contract
documents that make bidding on an d carrying out construction easier;
fosters the development of innovative, cost-effective design solutions
at a fair market value, resulting in lower overall project costs; and
generates design solutions that best meet the needs of the project,
emphasizing public health, safety and quality of life.  QBS is
mandated in at least 46 other states and has proven to be an effective
procurement tool. QBS generates competition by bringing more firms
into the bidding process. As a result, owners are ensured a better
project and a savings to the taxpayer.

 LEGISLATIVE HISTORY :
Similar to 2008: A.11204/S.8305;
Similar to 2007: A.5933/S.2162 (Veto Message 93);
2005-2006:  A.5672-A/S.1894-A;
2003-2004: A.11880/S.7776 and A.6028/S.3908 (Veto Message 245).

 FISCAL IMPLICATIONS :
Should result in cost savings for the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S3531B (ACTIVE) - Bill Text download pdf

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

                                 3531--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 24, 2009
                               ___________

Introduced  by  Sens.  DILAN,  DIAZ,  HASSELL-THOMPSON,  HUNTLEY, KLEIN,
  KRUEGER, MONSERRATE, ONORATO,  THOMPSON  --  read  twice  and  ordered
  printed,  and  when printed to be committed to the Committee on Corpo-
  rations, Authorities and Commissions -- reported favorably  from  said
  committee  and  committed  to  the  Committee  on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the public authorities law, in relation to requiring
  public authorities and public benefits corporations to negotiate  with
  professional  firms providing architectural or engineering services in
  order from the most qualified to the least qualified  with  regard  to
  the provision of services to the authority or corporation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph (iv) of paragraph  (b)  of  subdivision  3  of
section 2879 of the public authorities law, as amended by chapter 383 of
the laws of 1994, is amended to read as follows:
  (iv)  as used in this subparagraph, the term "professional firm" shall
be defined as any individual or sole proprietorship, partnership, corpo-
ration, association, or other legal entity permitted by law to  practice
the professions of architecture, engineering or surveying.
  IT  IS  THE POLICY OF NEW YORK STATE TO NEGOTIATE CONTRACTS FOR ARCHI-
TECTURAL AND/OR ENGINEERING SERVICES 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.
  IN  THE  PROCUREMENT  OF  ARCHITECTURAL,  ENGINEERING  AND   SURVEYING
SERVICES,  THE CORPORATION SHALL ENCOURAGE PROFESSIONAL FIRMS ENGAGED IN
THE LAWFUL PRACTICE OF THE PROFESSION TO SUBMIT AN ANNUAL  STATEMENT  OF
QUALIFICATIONS  AND  PERFORMANCE DATA. THE CORPORATION FOR EACH PROPOSED
PROJECT SHALL EVALUATE CURRENT STATEMENTS OF QUALIFICATIONS AND PERFORM-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10454-05-9

S. 3531--B                          2

ANCE DATA ON FILE WITH THE CORPORATION.  IF DESIRED, THE CORPORATION MAY
CONDUCT DISCUSSIONS WITH THREE  OR  MORE  PROFESSIONAL  FIRMS  REGARDING
ANTICIPATED  DESIGN  CONCEPTS  AND  PROPOSED  METHODS OF APPROACH TO THE
ASSIGNMENT.  THE CORPORATION SHALL SELECT, IN ORDER OF PREFERENCE, BASED
UPON CRITERIA ESTABLISHED BY THE CORPORATION, NO LESS THAN THREE PROFES-
SIONAL FIRMS DEEMED TO BE THE  MOST  HIGHLY  QUALIFIED  TO  PROVIDE  THE
SERVICES REQUIRED.
  EVERY  CORPORATION  SHALL NEGOTIATE A CONTRACT WITH THE HIGHEST QUALI-
FIED PROFESSIONAL FIRM FOR  ARCHITECTURAL  AND/OR  ENGINEERING  SERVICES
AND/OR  SURVEYING  SERVICES AT COMPENSATION WHICH THE CORPORATION DETER-
MINES IN WRITING TO BE FAIR  AND  REASONABLE  TO  SUCH  CORPORATION.  IN
MAKING  THIS DECISION, THE CORPORATION 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 corporation 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 corporation in the determination of the reasonableness of the
estimated cost of services to be rendered by the professional firm,  but
rather  the  corporation 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 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 CORPORATION BE UNABLE TO NEGOTIATE A
SATISFACTORY CONTRACT WITH THE PROFESSIONAL FIRM CONSIDERED  TO  BE  THE
MOST  QUALIFIED,  AT  A  FEE  THE  CORPORATION DETERMINES TO BE FAIR AND
REASONABLE TO THE CORPORATION, NEGOTIATIONS WITH THAT PROFESSIONAL  FIRM
SHALL  BE  FORMALLY  TERMINATED.    THE CORPORATION SHALL THEN UNDERTAKE
NEGOTIATIONS WITH THE SECOND MOST QUALIFIED PROFESSIONAL  FIRM.  FAILING
ACCORD WITH THE SECOND MOST QUALIFIED PROFESSIONAL FIRM, THE CORPORATION
SHALL FORMALLY TERMINATE NEGOTIATIONS. THE CORPORATION SHALL THEN UNDER-
TAKE  NEGOTIATIONS  WITH  THE  THIRD  MOST  QUALIFIED PROFESSIONAL FIRM.
SHOULD THE CORPORATION 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  QUALIFICATIONS  AND
IT  SHALL CONTINUE NEGOTIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL AN
AGREEMENT IS REACHED.  THE PROVISIONS OF THIS  SUBPARAGRAPH  SHALL  ONLY
APPLY  TO  ENGINEERING  AND/OR  ARCHITECTURAL  SERVICES AND/OR SURVEYING
SERVICES IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS.
  S 2. This act shall take effect immediately.

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Senate Bill S3531

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Sponsored By

Archive: Last Bill Status Via A7056 - In Senate Committee Rules Committee

Bill Amendments

2009-S3531 - Details

2009-S3531 - Summary

2009-S3531 - Sponsor Memo

2009-S3531 - Bill Text download pdf

co-Sponsors

2009-S3531A - Details

2009-S3531A - Summary

2009-S3531A - Sponsor Memo

2009-S3531A - Bill Text download pdf

co-Sponsors

2009-S3531B (ACTIVE) - Details

2009-S3531B (ACTIVE) - Summary

2009-S3531B (ACTIVE) - Sponsor Memo

2009-S3531B (ACTIVE) - Bill Text download pdf

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