S T A T E O F N E W Y O R K
________________________________________________________________________
5383
2009-2010 Regular Sessions
I N A S S E M B L Y
February 13, 2009
___________
Introduced by M. of A. KOON, BRENNAN -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the state finance law and the public authorities law, in
relation to the use of value engineering in capital projects
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new section
127-b to read as follows:
S 127-B. VALUE ENGINEERING IN CONSTRUCTION AND REPAIR OF BUILDINGS OF
INSTITUTIONS. 1. BEGINNING JULY FIRST, TWO THOUSAND NINE AND ENDING
MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, THE COMMISSIONER OF GENERAL
SERVICES SHALL ESTABLISH A DEMONSTRATION VALUE ENGINEERING PROGRAM.
"VALUE ENGINEERING" SHALL MEAN A SPECIALIZED COST CONTROL TECHNIQUE
WHICH USES A SYSTEMATIC APPROACH TO IDENTIFY AND EVALUATE ALTERNATIVES
TO ACHIEVE THE ESSENTIAL FUNCTIONS OF A CAPITAL PROJECT AT THE LOWEST
LIFE CYCLE COST CONSISTENT WITH REQUIRED PERFORMANCE, RELIABILITY, QUAL-
ITY AND SAFETY. LIFE CYCLE COSTS MAY INCLUDE, BUT SHALL NOT BE LIMITED
TO, COSTS OR SAVINGS ASSOCIATED WITH CONSTRUCTION, ENERGY USE, MAINTE-
NANCE, OPERATION, AND SALVAGE OR DISPOSAL. ALL CAPITAL PROJECTS WHOSE
ESTIMATED COST IS OVER TWENTY-FIVE MILLION DOLLARS WILL BE CONSIDERED
FOR VALUE ENGINEERING STUDIES. THE COMMISSIONER OF GENERAL SERVICES
SHALL ESTABLISH CRITERIA FOR SELECTING APPROPRIATE PROJECTS WHERE VALUE
ENGINEERING DESIGN REVIEW WOULD BE LIKELY TO RESULT IN SIGNIFICANT
SAVINGS OR IMPROVED QUALITY.
2. ON OR BEFORE AUGUST FIRST, TWO THOUSAND TWELVE, THE COMMISSIONER OF
GENERAL SERVICES SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION OF THE
BUDGET A PRELIMINARY EVALUATION OF THE DEMONSTRATION VALUE ENGINEERING
PROGRAM INCLUDING, BUT NOT LIMITED TO, VALUE ENGINEERING STUDY COSTS,
PROJECTED AND ACTUAL SAVINGS ACHIEVED BY IMPLEMENTATION OF VALUE ENGI-
NEERING RECOMMENDATIONS, AND RECOMMENDATIONS FOR ESTABLISHING A PERMA-
NENT VALUE ENGINEERING PROGRAM. ON OR BEFORE DECEMBER FIRST, TWO THOU-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02183-01-9
A. 5383 2
SAND TWELVE, THE DIRECTOR OF THE DIVISION OF THE BUDGET SHALL SUBMIT A
FINAL REPORT TO THE CHAIRS OF THE LEGISLATIVE FISCAL COMMITTEES WITH
RECOMMENDATIONS FOR ESTABLISHING A PERMANENT STATEWIDE VALUE ENGINEERING
PROGRAM AS PART OF THE CAPITAL PLANNING PROCESS.
S 2. The public authorities law is amended by adding a new section
1678-a to read as follows:
S 1678-A. VALUE ENGINEERING DEMONSTRATION PROGRAM. 1. BEGINNING JULY
FIRST, TWO THOUSAND NINE AND ENDING MARCH THIRTY-FIRST, TWO THOUSAND
TWELVE, THE AUTHORITY SHALL ESTABLISH A DEMONSTRATION VALUE ENGINEERING
PROGRAM. "VALUE ENGINEERING" SHALL MEAN A SPECIALIZED COST CONTROL TECH-
NIQUE WHICH USES A SYSTEMATIC APPROACH TO IDENTIFY AND EVALUATE ALTERNA-
TIVES TO ACHIEVE THE ESSENTIAL FUNCTIONS OF A CAPITAL PROJECT AT THE
LOWEST LIFE CYCLE COST CONSISTENT WITH REQUIRED PERFORMANCE, RELIABIL-
ITY, QUALITY AND SAFETY. LIFE CYCLE COSTS MAY INCLUDE, BUT SHALL NOT BE
LIMITED TO, COSTS OR SAVINGS ASSOCIATED WITH CONSTRUCTION, ENERGY USE,
MAINTENANCE, OPERATION, AND SALVAGE OR DISPOSAL. ALL CAPITAL PROJECTS
WHOSE ESTIMATED COST IS OVER TWENTY-FIVE MILLION DOLLARS FOR WHICH THE
DORMITORY AUTHORITY IS AUTHORIZED TO PREPARE OR CAUSE TO BE PREPARED
PLANS, SPECIFICATIONS, DESIGNS AND ESTIMATES OF COSTS FOR DESIGN,
CONSTRUCTION, RECONSTRUCTION, REHABILITATION OR IMPROVEMENT WILL BE
CONSIDERED FOR VALUE ENGINEERING STUDIES. THE AUTHORITY SHALL ESTABLISH
CRITERIA FOR SELECTING APPROPRIATE PROJECTS WHERE VALUE ENGINEERING
DESIGN REVIEW WOULD BE LIKELY TO RESULT IN SIGNIFICANT SAVINGS OR
IMPROVED QUALITY.
2. ON OR BEFORE AUGUST FIRST, TWO THOUSAND TWELVE, THE EXECUTIVE
DIRECTOR OF THE AUTHORITY SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION
OF THE BUDGET A PRELIMINARY EVALUATION OF THE DEMONSTRATION VALUE ENGI-
NEERING PROGRAM INCLUDING, BUT NOT LIMITED TO, VALUE ENGINEERING STUDY
COSTS, PROJECTED AND ACTUAL SAVINGS ACHIEVED BY IMPLEMENTATION OF VALUE
ENGINEERING RECOMMENDATIONS, AND RECOMMENDATIONS FOR ESTABLISHING A
PERMANENT VALUE ENGINEERING PROGRAM. ON OR BEFORE DECEMBER FIRST, TWO
THOUSAND TWELVE, THE DIRECTOR OF THE DIVISION OF THE BUDGET SHALL SUBMIT
A FINAL REPORT TO THE CHAIRS OF THE LEGISLATIVE FISCAL COMMITTEES WITH
RECOMMENDATIONS FOR ESTABLISHING A PERMANENT STATEWIDE VALUE ENGINEERING
PROGRAM AS PART OF THE CAPITAL PLANNING PROCESS.
S 3. This act shall take effect immediately.