S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5903
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 5, 2017
                                ___________
 
 Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in relation  to  state  contracts
   for geological services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 136-a of the state finance law, as amended by chap-
 ter 746 of the laws of 1982, subdivision 4 as amended by chapter 383  of
 the laws of 1994, is amended to read as follows:
   §  136-a.  Contracts  for  architectural,  engineering, GEOLOGICAL and
 surveying services. 1. As used in this section: the  term  "professional
 firm"  shall  be defined as any individual or sole proprietorship, part-
 nership, corporation, association or other legal entity permitted by law
 to practice the professions of  architecture,  engineering,  GEOLOGY  or
 surveying.
   The term "state department" shall be defined as those state government
 departments,  divisions  or  commissions empowered by the state to enter
 into contractual agreements on behalf of the state of New York.
   2. It is the policy of New  York  state  to  negotiate  contracts  for
 architectural  and/or  engineering  services  and/or  GEOLOGICAL  AND/OR
 surveying services on the basis of demonstrated  competence  and  quali-
 fication  for the type of professional services required and at fair and
 reasonable fees.
   3. In the procurement of architectural,  engineering,  GEOLOGICAL  and
 surveying  services,  the  requiring  state  department  shall encourage
 professional firms engaged in the lawful practice of the  profession  to
 submit  an annual statement of qualifications and performance data.  The
 requiring state department for  each  proposed  project  shall  evaluate
 current  statements  of qualifications and performance data on file with
 the department. If desired, the requiring state department  may  conduct
 discussions  with three or more professional firms regarding anticipated

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

                                                            LBD11467-01-7

 S. 5903                             2
 
 design concepts and proposed methods of approach to the assignment.  The
 state department shall select, in order of preference, based upon crite-
 ria  established  by  the requiring state department, no less than three
 professional firms deemed to be the most highly qualified to provide the
 services required.
   4.  The requiring state department shall negotiate a contract with the
 highest qualified professional firm for architectural and/or engineering
 services and/or GEOLOGICAL SERVICE AND/OR surveying services at  compen-
 sation which the department determines in writing to be fair and reason-
 able  to  the state of New York. In making this decision, the department
 shall take into account the  estimated  value  of  the  services  to  be
 rendered,  including  the costs, the scope, complexity, and professional
 nature thereof.  The department 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 department in the determination  of  the
 reasonableness  of  the estimated cost of services to be rendered by the
 professional firm, but rather the department 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 profes-
 sional  firm  are defined as those costs generally associated with over-
 head 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  requiring  state
 department  be  unable  to  negotiate  a  satisfactory contract with the
 professional firm considered to be the most  qualified,  at  a  fee  the
 department  determines  to  be  fair  and reasonable to the state of New
 York, negotiations with that professional firm shall be formally  termi-
 nated.  The requiring state department shall then undertake negotiations
 with the second most qualified professional firm.  Failing  accord  with
 the  second  most  qualified  professional  firm,  the  department shall
 formally terminate negotiations. The requiring  state  department  shall
 then  undertake  negotiations with the third most qualified professional
 firm. Should the requiring state department 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  qualification and it shall continue negotiations in accordance with
 this section until an agreement is reached.
   5. This legislation shall only apply to engineering  and/or  architec-
 tural  services and/or GEOLOGICAL AND/OR surveying services in excess of
 twenty-five thousand dollars.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.