BILL NUMBER: S6301

SPONSOR: SANDERS
 
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

 
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 pilot program (the "Pilot Program")
to further expand contracting opportunities for small businesses (as
defined in Economic Development Law ("EDL") § 131) and minority-owned
and women-owned business enterprises (as defined in Executive Law §
310), notwithstanding the expiration of said section on December 31,
2019 pursuant to L. 1988, c. 261, § 121 
H).

 
SUMMARY OF PROVISIONS:
              

The Pilot Program would consist of 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 minority-
owned and women-owned business enterprises (as defined in Executive Law
§ 310.

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 the advertisement and issuance of a 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 consid-
ered 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 with-
draw 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, 2023, for the expiration of the Pilot Program.
 
JUSTIFICATION:

The Pilot Program is an extension of legislative enactments designed to
improve opportunities in the State procurement process for small, minor-
ity 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 15A, promoting and encouraging the continued economic devel-
opment of minority-and woman-owned business enterprises participating in
the State procurement process.

- In 2010, the Legislature also amended PAL § 2879 to provide for
discretionary 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 enter-
prises.

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.

 
PRIOR LEGISLATIVE HISTORY:

This bill was previously submitted in 2018 and introduced by both houses
- S.7960 Ranzenhofer/ A.11025 Rules (Bichotte).

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This bill shall take effect immediately and shall expire July 1, 2023,
on which date it shall be deemed repealed.