BILL NUMBER: S7960

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to the award of contracts to small businesses, minority-owned
business enterprises and women-owned business enterprises; and providing
for the repeal of such provisions upon expiration thereof

1. 
PURPOSE OF THE BILL:

The bill would amend the Public Authorities Law ("PAL") to authorize the
establishment by the Dormitory Authority of the State of New York
("DASNY") of a four-year procurement set-aside pilot program (the "Pilot
Program") to further expand contracting opportunities for small busi-
nesses (as defined in Economic Development Law ("EDL") § 131) and/or
minority-owned and women-owned business enterprises (as defined in Exec-
utive Law § 310).

2.  
SUMMARY OF PROVISIONS:

The Pilot Program would create a discretionary, competitive procurement
              

set-aside in an annual amount not to exceed a total value of $20 million
or 5% of the value of all DASNY construction contracts awarded in a
given fiscal year.

Procurements pursuant to the Pilot Program would be undertaken in
accordance with DASNY's procurement policy and guidelines (adopted
pursuant to PAL § 2879), with participation in the Program reserved
exclusively to small businesses (as defined in EDL § 131) and/or minori-
ty-owned and women-owned business enterprises (as defined in Executive
Law § 310, notwithstanding the expiration of said section on December
31, 2016 pursuant to L. 1988, c. 261, § 121 
H).

Allocation of procurements to the Pilot Program is to be approached
flexibly. DASNY, in its sole discretion, must first determine which
procurements would be made eligible under the Pilot Program. Eligible
procurements must then be designated by DASNY as Pilot Program procure-
ments prior to an advertisement and request for bids or proposals. All
documents used in such procurement must also indicate the Pilot Program
designation.

If the total number of businesses responding to the procurement and
considered capable of meeting the applicable specifications and terms is
less than three, or if DASNY determines that acceptance will result in
the payment of an unreasonable price, DASNY must reject all bids and
withdraw the Pilot Program designation.

Procurements made pursuant to PAL § 1678(28) may be undertaken in
conjunction with and in furtherance of State Finance Law ("SFL") § 147
authorizing a mentor-protege program to foster long-term relationships
between approved mentor firms and small business concerns and minority
and women-owned businesses certified pursuant to Executive Law Article
15-A.

The total value of contracts awarded pursuant to PAL § 1678(28) per
fiscal year cannot exceed the greater of a total of $20 million or 5% of
the value of all contracts awarded by DASNY in a given fiscal year.


The bill would become effective immediately and provide a sunset date of
July 1, 2022, for the expiration of the Pilot Program.

3.  
JUSTIFICATION:

The Pilot Program is a logical extension of recent legislative enact-
ments designed to improve opportunities in the State procurement process
for small, minority and women-owned businesses:

-In 2009, the Legislature enacted SFL § 147 to authorize state authori-
ties and agencies to develop mentor-protege programs to foster the
development of longterm relationships between approved mentor firms, and
small business concerns and minority-owned and women-owned businesses.

-In 2010, the Legislature enacted significant revisions to Executive Law
Article 15-A, promoting and encouraging the continued economic develop-
ment of minority-and woman-owned business enterprises participating in
the State procurement process.

-In 2010, the Legislature also amended PAL § 2879 to provide for discre-
tionary purchases of goods and services not exceeding $200,000 in value,
without a formal competitive process, from small business concerns or
those certified as minority or women-owned business enterprises.

This bill will expand upon the foundation of this existing legislation
by: (a) creating targeted, competitive procurement opportunities that
would be expected to further improve the success of small, minority-
owned and women-owned businesses that contract with DASNY; and (b)
fostering the development of alternative sources of reliable contractors
and subcontractors ready to perform larger jobs and responsibilities
through mentor-protege relationships.

4. 
PRIOR LEGISLATIVE HISTORY:

None.

5. 
FISCAL IMPLICATIONS:

None.

6.  
EFFECTIVE DATE:
This bill shall take effect immediately and shall expire July 1, 2022,
on which date it shall be deemed repealed..