S T A T E O F N E W Y O R K
________________________________________________________________________
9689
I N A S S E M B L Y
May 15, 2014
___________
Introduced by M. of A. ENGLEBRIGHT -- (at request of the State Comp-
troller) -- read once and referred to the Committee on Governmental
Operations
AN ACT to amend the state finance law, in relation to reports on
centralized contracts and authorizing alternative procurement methods
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 2 of section 112 of the state
finance law, as amended by section 18 of part L of chapter 55 of the
laws of 2012, is amended to read as follows:
(a) Before any contract made for or by any state agency, department,
board, officer, commission, or institution, except the office of general
services, shall be executed or become effective, whenever such contract
exceeds fifty thousand dollars in amount and before any contract made
for or by the office of general services shall be executed or become
effective, whenever such contract exceeds eighty-five thousand dollars
in amount, it shall first be approved by the comptroller and filed in
his or her office, with the exception of contracts established as a
centralized contract through the office of general services [and
purchase orders or other procurement transactions issued under such
centralized contracts] THAT WERE NOT AWARDED AS THE RESULT OF AN ALTER-
NATIVE PROCUREMENT. The comptroller shall make a final written determi-
nation with respect to approval of such contract within ninety days of
the submission of such contract to his or her office unless the comp-
troller shall notify, in writing, the state agency, department, board,
officer, commission, or institution, prior to the expiration of the
ninety day period, and for good cause, of the need for an extension of
not more than fifteen days, or a reasonable period of time agreed to by
such state agency, department, board, officer, commission, or institu-
tion and provided, further, that such written determination or extension
shall be made part of the procurement record pursuant to paragraph f of
subdivision one of section one hundred sixty-three of this chapter.
S 2. Section 163 of the state finance law is amended by adding a new
subdivision 15 to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14058-02-4
A. 9689 2
15. ALTERNATIVE PROCUREMENT METHODS. A. WHEN THE COMMISSIONER OR A
STATE AGENCY DETERMINES THAT IT IS IN THE BEST INTEREST OF THE STATE TO
DEVELOP AN ALTERNATIVE PROCUREMENT METHOD NOT AUTHORIZED BY THIS ARTICLE
FOR GOODS, SERVICES OR TECHNOLOGY, THE COMMISSIONER OR STATE AGENCY IS
HEREBY AUTHORIZED TO DEVELOP AND USE SUCH METHOD FOR A SPECIFIC CONTRACT
AWARD. SUCH DETERMINATION SHALL BE MADE IN WRITING AND SHALL INCLUDE
DOCUMENTATION FOR THE PROCUREMENT RECORD THAT SUCH ALTERNATIVE PROCURE-
MENT METHOD: (I) WOULD SERVE THE INTEREST OF THE STATE BETTER THAN OTHER
METHODS CURRENTLY AVAILABLE UNDER THIS SECTION; (II) CAN BE APPLIED ON A
COMPETITIVE, FAIR AND EQUITABLE BASIS; AND (III) CONTAINS AN APPROPRIATE
EVALUATION METHODOLOGY THAT CONSIDERS BOTH COST AND QUALITATIVE EVALU-
ATION FACTORS. SUCH ALTERNATIVE PROCUREMENT METHOD SHALL BE SUBJECT TO
ALL OTHER APPLICABLE PROVISIONS OF THIS SECTION. THE COMMISSIONER OR A
STATE AGENCY MAY NOT UNDERTAKE AN ALTERNATIVE PROCUREMENT METHOD UNTIL
THE COMPTROLLER HAS DETERMINED THAT THE PROPOSED ALTERNATIVE PROCUREMENT
METHOD IS IN THE BEST INTEREST OF THE STATE; CAN BE APPLIED ON A COMPET-
ITIVE, FAIR AND EQUITABLE BASIS; AND UTILIZES AN APPROPRIATE EVALUATION
METHODOLOGY THAT CONSIDERS BOTH COST AND QUALITATIVE EVALUATION FACTORS.
B. WHEN USING AN ALTERNATIVE PROCUREMENT METHOD AUTHORIZED BY THIS
SUBDIVISION, THE COMMISSIONER OR AGENCY SHALL INCLUDE IN ITS SOLICITA-
TION DOCUMENT A DETAILED DESCRIPTION OF THE PROPOSED METHOD OF AWARD. IN
ADVANCE OF THE INITIAL RECEIPT OF OFFERS, THE COMMISSIONER OR STATE
AGENCY SHALL DETERMINE AND DOCUMENT IN THE PROCUREMENT RECORD THE EVALU-
ATION CRITERIA AND PROCESS TO BE USED IN THE DETERMINATION OF THE
SPECIFIC CONTRACT AWARD AND THE PROCESS BY WHICH THE EVALUATION AND
SELECTION SHALL BE CONDUCTED. IN ADDITION TO THE REQUIREMENTS SET FORTH
IN PARAGRAPH G OF SUBDIVISION NINE OF THIS SECTION, THE PROCUREMENT
RECORD SHALL DOCUMENT THE BASIS UPON WHICH THE AGENCY HAS DETERMINED
THAT POTENTIAL VENDORS WILL BE ABLE TO RESPOND WITH VIABLE BIDS TO SUCH
ALTERNATIVE PROCUREMENT.
C. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION FIVE OF SECTION THREE
HUNDRED FIFTY-FIVE TO THE CONTRARY OR SECTION SIXTY-TWO HUNDRED EIGHTEEN
OF THE EDUCATION LAW, BEFORE ANY CONTRACT AWARDED UNDER AN ALTERNATIVE
PROCUREMENT WHICH EXCEEDS FIFTY THOUSAND DOLLARS IN AMOUNT BECOMES
EFFECTIVE IT MUST BE APPROVED BY THE COMPTROLLER AND FILED IN HIS OR HER
OFFICE.
D. FOR EACH ALTERNATIVE PROCUREMENT AWARDED, THE COMMISSIONER OR STATE
AGENCY SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER AND THE HEADS OF
THE FISCAL COMMITTEES OF EACH HOUSE OF THE STATE LEGISLATURE NO LATER
THAN THE MID-POINT OF THE INITIAL TERM OF THE RESULTANT CONTRACT A
REPORT ASSESSING THE VALIDITY OF THE ALTERNATIVE PROCUREMENT METHOD AND
COMPARING ITS RESULTS TO STANDARD PROCUREMENT METHODS FOR GOODS,
SERVICES OR TECHNOLOGY.
E. THE COMMISSIONER OF GENERAL SERVICES SHALL PREPARE A REPORT ON THE
SAVINGS ACHIEVED FROM ALL CONTRACTS ESTABLISHED AS A CENTRALIZED
CONTRACT THROUGH THE OFFICE OF GENERAL SERVICES PURSUANT TO THIS
SECTION, THE IMPACT OF SUCH CONTRACTS ON SMALL, MINORITY AND WOMEN-OWNED
BUSINESS ENTERPRISES, AND THE EFFECTIVENESS OF SUCH CONTRACTS IN
FULFILLING THE PURCHASING NEEDS OF ALL AUTHORIZED USERS OF SUCH
CONTRACTS. SUCH REPORT SHALL BE SUBMITTED BY SUCH COMMISSIONER TO THE
GOVERNOR, THE STATE COMPTROLLER, AND THE HEADS OF THE FISCAL COMMITTEES
OF EACH HOUSE OF THE STATE LEGISLATURE NO LATER THAN JANUARY FIFTEENTH,
TWO THOUSAND FIFTEEN, AND THEREAFTER ANNUALLY ON OR BEFORE SUCH DATE.
S 3. This act shall take effect immediately; provided, however, that
the amendments to section 163 of the state finance law made by section
A. 9689 3
two of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.