S T A T E O F N E W Y O R K
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10528
I N A S S E M B L Y
June 1, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Latimer) --
read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to letting of
certain contracts
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 2 of the laws of 2012, 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 thirty-five thousand dollars and all purchase contracts
involving an expenditure of more than twenty thousand dollars, shall be
awarded by the appropriate officer, board or agency of a political
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, provided, however, that purchase contracts
(including contracts for service work, but excluding any purchase
contracts necessary for the completion of a public works contract pursu-
ant to article eight of the labor law) may be awarded on the basis of
best value, as defined in section one hundred sixty-three of the state
finance law, to a responsive and responsible bidder or offerer in the
manner provided by this section except that in a political subdivision
other than a city with a population of one million inhabitants or more
or any district, board or agency with jurisdiction exclusively therein
the use of best value for awarding a purchase contract or purchase
contracts must be authorized by local law or, in the case of a district
corporation, school district or board of cooperative educational
services, by rule, regulation or resolution adopted at a public meeting.
In any case where a responsible bidder's or responsible offerer'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 subdivi-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15771-02-2
A. 10528 2
sion, the gross price shall be reduced by the amount of such allowance,
for the purpose of determining the best value. In cases where two or
more responsible bidders furnishing the required security submit identi-
cal 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 her or its discretion, reject all bids or offers and readvertise
for new bids or offers in the manner provided by this section. In deter-
mining whether a purchase is an expenditure within the discretionary
threshold amounts established by this subdivision, the officer, board or
agency of a political subdivision or of any district therein shall
consider the reasonably expected aggregate amount of all purchases of
the same commodities, services or technology to be made within the
twelve-month period commencing on the date of purchase. Purchases of
commodities, services or technology shall not be artificially divided
for the purpose of satisfying the discretionary buying thresholds estab-
lished by this subdivision. A change to or a renewal of a discretionary
purchase shall not be permitted if the change or renewal would bring the
reasonably expected aggregate amount of all purchases of the same
commodities, services or technology from the same provider within the
twelve-month period commencing on the date of the first purchase to an
amount greater than the discretionary buying threshold amount. For
purposes of this section, "sealed bids" and "sealed offers", as that
term applies to purchase contracts, (including contracts for service
work, but excluding any purchase contracts necessary for the completion
of a public works contract pursuant to article eight of the labor law)
shall include bids and offers submitted in an electronic format includ-
ing submission of the statement of non-collusion required by section one
hundred three-d of this article, provided that the governing board of
the political subdivision or district, by resolution, has authorized the
receipt of bids and offers in such format. Submission in electronic
format may, for technology contracts only, be required as the sole meth-
od for the submission of bids and offers. Bids and offers submitted in
an electronic format shall be transmitted by bidders and offerers to the
receiving device designated by the political subdivision or district.
Any method used to receive electronic bids and offers shall comply with
article three of the state technology law, and any rules and regulations
promulgated and guidelines developed thereunder and, at a minimum, must
(a) document the time and date of receipt of each bid and offer received
electronically; (b) authenticate the identity of the sender; (c) ensure
the security of the information transmitted; and (d) ensure the confi-
dentiality of the bid or offer until the time and date established for
the opening of bids or offers. The timely submission of an electronic
bid or offer in compliance with instructions provided for such
submission in the advertisement for bids or offers and/or the specifica-
tions shall be the responsibility solely of each bidder or offerer or
prospective bidder or offerer. No political subdivision 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 and offers. DURING THE PERIOD BEGINNING JUNE FIRST, TWO THOUSAND
TWELVE, AND ENDING MARCH THIRTY-FIRST, TWO THOUSAND SIXTEEN, THE VILLAGE
OF PORT CHESTER AND THE CITY OF NEW ROCHELLE, IN WESTCHESTER COUNTY MAY,
FOR COMMODITY, SERVICE AND TECHNOLOGY CONTRACTS REQUIRE ELECTRONIC
SUBMISSION AS THE SOLE METHOD FOR THE SUBMISSION OF BIDS FOR THE SOLIC-
ITATION. SUCH MUNICIPALITIES SHALL, DURING THE STATED TIME PERIOD,
UNDERTAKE NO MORE THAN FIFTY SUCH ELECTRONIC BID SOLICITATIONS, NONE OF
WHICH SHALL BE REVERSE AUCTIONS, PRIOR TO APRIL FIRST, TWO THOUSAND
A. 10528 3
SIXTEEN. IN ADDITION, SUCH MUNICIPALITIES MAY CONDUCT UP TO TWENTY
REVERSE AUCTIONS THROUGH ELECTRONIC MEANS, PRIOR TO APRIL FIRST, TWO
THOUSAND SIXTEEN. PRIOR TO REQUIRING THE ELECTRONIC SUBMISSION OF BIDS,
THE CHIEF FISCAL OFFICERS OF THE CITY OF NEW ROCHELLE AND THE VILLAGE OF
PORT CHESTER SHALL MAKE A DETERMINATION, WHICH SHALL BE DOCUMENTED IN
THE PROCUREMENT RECORD, THAT ELECTRONIC SUBMISSION AFFORDS A FAIR AND
EQUAL OPPORTUNITY FOR OFFERERS TO SUBMIT RESPONSIVE OFFERS. WITHIN THIR-
TY DAYS OF THE COMPLETION OF THE FIFTIETH ELECTRONIC BID SOLICITATION,
OR BY APRIL FIRST, TWO THOUSAND SIXTEEN, WHICHEVER IS EARLIER, THE CHIEF
FISCAL OFFICERS OF THE CITY OF NEW ROCHELLE AND THE VILLAGE OF PORT
CHESTER SHALL PREPARE AND ISSUE REPORTS TO THE LEGISLATURE ASSESSING THE
USE OF ELECTRONIC SUBMISSIONS AND MAKE RECOMMENDATIONS REGARDING FUTURE
USE OF THIS PROCUREMENT METHOD. IN ADDITION, WITHIN THIRTY DAYS OF THE
COMPLETION OF THE TWENTIETH REVERSE AUCTION THROUGH ELECTRONIC MEANS, OR
BY APRIL FIRST, TWO THOUSAND SIXTEEN, WHICHEVER IS EARLIER, THE CHIEF
FISCAL OFFICERS OF THE CITY OF NEW ROCHELLE AND THE VILLAGE OF PORT
CHESTER SHALL PREPARE AND ISSUE REPORTS TO THE LEGISLATURE ASSESSING THE
USE OF REVERSE AUCTIONS THROUGH ELECTRONIC MEANS AND MAKE RECOMMENDA-
TIONS REGARDING FUTURE USE OF THIS PROCUREMENT METHOD. SUCH REPORTS
SHALL BE PUBLISHED ON THE OFFICIAL WEBSITES OF THE RESPECTIVE MUNICI-
PALITIES AND SHALL BE PROVIDED ELECTRONICALLY TO THE CHAIR OF THE SENATE
FINANCE COMMITTEE, THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE COMMIS-
SIONER OF THE OFFICE OF GENERAL SERVICES.
S 2. 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 and reversion
of such subdivision and shall expire therewith.