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.