S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7180
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 27, 2021
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  -- (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 and the legislative law, in
   relation to participation by state agencies in a system  used  by  the
   comptroller  to compile vendor responsibility information; in relation
   to authorizing the commissioner of the office of general services  and
   state  agencies  to develop alternative procurement methods not other-
   wise authorized by law under certain  circumstances;  in  relation  to
   authorizing  competitive  negotiation concluding with a best and final
   offer; in relation to clarifying the use of best and final offers  for
   invitations  for  bids  and requests for proposals for goods, services
   and technology; in relation to clarifying the use of contracts let  by
   another  governmental  agency; in relation to clarifying the valuation
   of non-cash contracts by the state comptroller;  and  in  relation  to
   conforming the definition of restricted period
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 163-c to read as follows:
   § 163-C. VENDOR RESPONSIBILITY; ONLINE SYSTEM PARTICIPATION. 1.  DEFI-
 NITIONS.  AS  USED  IN  THIS  SECTION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   A. "ENROLLMENT" SHALL MEAN THE ESTABLISHMENT  OF  AN  ONLINE  SERVICES
 ACCOUNT  WITH  THE STATE COMPTROLLER, INCLUDING, BUT NOT LIMITED TO, THE
 CREATION OF  A  UNIQUE  USER  IDENTIFICATION  AND  PASSWORD.  ENROLLMENT
 PROVIDES A USER ACCESS TO THE SYSTEM.
   B.  "ONLINE  SERVICES" SHALL MEAN THE SERVICES PROVIDED ELECTRONICALLY
 AND SECURELY BY THE STATE COMPTROLLER FOR  THE  BENEFIT  OF  NEW  YORK'S
 CUSTOMERS,  CLIENTS  AND  BUSINESS PARTNERS. SUCH ONLINE SERVICES MAY BE
 EXPANDED AND ENHANCED AS TECHNOLOGY ALLOWS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10547-03-1

 A. 7180                             2
 
   C. "STATE AGENCY" OR "STATE AGENCIES" SHALL  MEAN  ALL  STATE  DEPART-
 MENTS, BOARDS, COMMISSIONS, OFFICES OR INSTITUTIONS. SUCH TERM SHALL NOT
 INCLUDE THE LEGISLATURE OR THE JUDICIARY.
   D.  "STATE  CONTRACT" OR "CONTRACT" SHALL MEAN AND INCLUDE ANY WRITTEN
 AGREEMENT FOR THE ACQUISITION OF GOODS, SERVICES OR CONSTRUCTION OF  ANY
 KIND  BETWEEN  A  VENDOR  AND  A STATE AGENCY, OR A WRITTEN AGREEMENT OR
 OTHER INSTRUMENT WHEREIN A STATE AGENCY  AGREES  TO  GIVE  CONSIDERATION
 OTHER  THAN THE PAYMENT OF MONEY AS CONTEMPLATED IN SUBDIVISION THREE OF
 SECTION ONE HUNDRED TWELVE OF THIS CHAPTER.
   E. "SUBCONTRACTOR" SHALL  MEAN  AN  INDIVIDUAL,  SOLE  PROPRIETORSHIP,
 PARTNERSHIP, JOINT VENTURE OR CORPORATION, WHICH IS ENGAGED IN A SUBCON-
 TRACT  BY  A VENDOR PURSUANT TO A STATE CONTRACT AND SUCH SUBCONTRACT IS
 VALUED AT ONE HUNDRED THOUSAND DOLLARS OR MORE AND IS KNOWN AT THE  TIME
 OF THE AWARD OF THE STATE CONTRACT TO THE VENDOR.
   F.  "SYSTEM"  SHALL  MEAN  THE  ON-LINE  SOFTWARE,  DATA  AND  RELATED
 RESOURCES MAINTAINED BY THE COMPTROLLER TO COMPILE VENDOR RESPONSIBILITY
 INFORMATION.
   G. "TERMS OF SERVICE" SHALL MEAN THE TERMS AND CONDITIONS DEVELOPED BY
 THE STATE COMPTROLLER AND AGREED TO BY EACH  AUTHORIZED  USER  PRIOR  TO
 GAINING  ACCESS  TO  ONLINE SERVICES.   TERMS OF SERVICE SHALL INCLUDE A
 DESCRIPTION OF THE SERVICES, OBLIGATIONS OF THE  STATE  COMPTROLLER  AND
 THE  AUTHORIZED  USER,  A DESCRIPTION OF THE STATE COMPTROLLER'S PRIVACY
 POLICY, AUTHORIZED USER CODE OF CONDUCT, AND  INDEMNITY  FOR  THE  STATE
 COMPTROLLER  AND  THE STATE OF NEW YORK. TERMS OF SERVICE ARE SUBJECT TO
 CHANGE AS PRESCRIBED BY THE STATE COMPTROLLER.    AUTHORIZED  USERS  MAY
 VIEW CHANGES VIA THE STATE COMPTROLLER'S INTERNET SITE.
   H.  "VENDOR"  SHALL  INCLUDE  ANY  PERSON, PARTNERSHIP, CORPORATION OR
 LIMITED LIABILITY COMPANY OR ANY BUSINESS  ENTITY  BIDDING  ON  A  STATE
 PROCUREMENT OR OTHERWISE AWARDED A STATE CONTRACT.
   I.  "VENDOR  RESPONSIBILITY" SHALL MEAN THAT A VENDOR HAS THE CAPACITY
 TO FULLY PERFORM THE TERMS OF A CONTRACT AND THE INTEGRITY AND  BUSINESS
 ETHICS  TO JUSTIFY AN AWARD OF PUBLIC DOLLARS. A DETERMINATION OF VENDOR
 RESPONSIBILITY SHALL INCLUDE CONSIDERATION OF FACTORS INCLUDING, BUT NOT
 LIMITED TO, FINANCIAL  AND  ORGANIZATIONAL  CAPACITY,  LEGAL  AUTHORITY,
 INTEGRITY AND PAST PERFORMANCE ON GOVERNMENTAL CONTRACTS.
   2. A. STATE AGENCIES SHALL ENROLL WITH THE STATE COMPTROLLER TO ACCESS
 THE  SYSTEM MAINTAINED BY THE COMPTROLLER TO COMPILE VENDOR RESPONSIBIL-
 ITY INFORMATION. STATE AGENCIES SHALL AGREE TO AND ABIDE BY THE TERMS OF
 SERVICE FOR SUCH SYSTEM AS THE STATE COMPTROLLER DEEMS NECESSARY.
   B. FOR EACH CONTRACT OR SUBCONTRACT BETWEEN A VENDOR AND A SUBCONTRAC-
 TOR WHERE, PURSUANT TO LAW OR BY DIRECTION OF THE STATE AGENCY,  DISCLO-
 SURE FOR VENDOR RESPONSIBILITY IS REQUIRED, THE STATE AGENCY SHALL:
   (I) PROVIDE NOTICE TO VENDORS BIDDING FOR PROCUREMENTS ADMINISTERED BY
 THE  STATE AGENCY THAT ANY VENDOR AND SUBCONTRACTOR, SUBMITTING A VENDOR
 RESPONSIBILITY QUESTIONNAIRE SHALL DO SO VIA THE  SYSTEM  MAINTAINED  TO
 COMPILE VENDOR RESPONSIBILITY INFORMATION;
   (II) PROVIDE VENDORS WITH INSTRUCTIONS ON HOW TO ELECTRONICALLY ACCESS
 THE  SYSTEM  AND PROVIDE CONTACT INFORMATION FOR ASSISTANCE WITH ENROLL-
 MENT. THIS INFORMATION SHALL BE MADE AVAILABLE PRIOR TO  THE  TIME  WHEN
 VENDORS ARE REQUIRED TO SUBMIT DISCLOSURE FOR VENDOR RESPONSIBILITY; AND
   (III) ACCESS THE SYSTEM TO OBTAIN AND EVALUATE ANY DATA SUBMITTED BY A
 VENDOR  PROPOSED  FOR  CONTRACT  AWARD.  STATE AGENCIES SHALL ENSURE THE
 SUBMISSION FILED BY THE VENDOR MEETS SUCH SYSTEM'S TIMELINESS STANDARDS.
 SUCH PROVISIONS APPLY REGARDLESS OF WHETHER THE CONTRACT IS  SUBJECT  TO
 PRE-REVIEW AND APPROVAL BY THE STATE COMPTROLLER.

 A. 7180                             3
 
   C.  FOR  CONTRACTS  WHERE VENDOR DISCLOSURE IS NOT OTHERWISE REQUIRED,
 THE STATE AGENCY AT ITS  DISCRETION,  MAY  REQUIRE  VENDORS  BIDDING  ON
 PROCUREMENTS,  AND/OR  SUBCONTRACTORS, TO SUBMIT A VENDOR RESPONSIBILITY
 QUESTIONNAIRE VIA THE SYSTEM. NOTHING CONTAINED IN THIS PARAGRAPH  SHALL
 BE CONSTRUED TO ALTER THE EXISTING AUTHORITY OF THE STATE COMPTROLLER TO
 REQUIRE  THE  SUBMISSION  OF  A  VENDOR  RESPONSIBILITY QUESTIONNAIRE IN
 CONJUNCTION WITH HIS OR HER DUTY TO REVIEW AND APPROVE  STATE  CONTRACTS
 PRIOR TO SUCH CONTRACTS BECOMING EFFECTIVE.
   D.  STATE  AGENCIES SHALL PROVIDE ACCESS TO THE SYSTEM TO USERS WITHIN
 THEIR ORGANIZATION, AS DEEMED APPROPRIATE BY THE HEAD OF THE STATE AGEN-
 CY OR HIS OR HER DESIGNEE. STATE AGENCY USERS PROVIDED WITH SUCH  ACCESS
 SHALL  BE  THOSE INDIVIDUALS, WHO, AS PART OF THEIR OFFICIAL JOB DUTIES,
 ARE REQUIRED TO ASSESS AND/OR REVIEW VENDOR RESPONSIBILITY FOR THE AGEN-
 CY'S CONTRACTS.
   § 2. Section 163 of the state finance law is amended by adding  a  new
 subdivision 16 to read as follows:
   16.  ALTERNATIVE  PROCUREMENT  METHODS FOR THE ACQUISITION OF NON-CON-
 STRUCTION RELATED COMMODITIES, SERVICES  AND  TECHNOLOGY.  A.  WHEN  THE
 COMMISSIONER  OR A STATE AGENCY DETERMINES THAT IT IS IN THE BEST INTER-
 EST OF THE STATE TO DEVELOP A PROCUREMENT METHOD NOT AUTHORIZED BY  THIS
 SECTION FOR NON-CONSTRUCTION RELATED COMMODITIES, SERVICES AND TECHNOLO-
 GY, 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  PROCUREMENT 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 EQUI-
 TABLE  BASIS;  AND  (III) CONTAINS AN APPROPRIATE EVALUATION METHODOLOGY
 THAT CONSIDERS BOTH COST  AND  QUALITATIVE  EVALUATION  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 COMPETITIVE, 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 A DETAILED DESCRIPTION OF THE PROPOSED METHOD OF AWARD. IN  ADVANCE
 OF  THE  INITIAL  RECEIPT  OF  OFFERS OR BIDS, 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 THE PROVISIONS OF SUBDIVISION FIVE OF SECTION THREE
 HUNDRED FIFTY-FIVE OF THE EDUCATION  LAW  TO  THE  CONTRARY  OR  SECTION
 SIXTY-TWO  HUNDRED  EIGHTEEN  OF  THE EDUCATION LAW, BEFORE ANY CONTRACT
 AWARDED UNDER THIS SECTION  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 PROCUREMENT AWARDED PURSUANT TO THIS SECTION, THE  COMMIS-
 SIONER OR STATE AGENCY SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER AND

 A. 7180                             4
 
 THE  HEADS  OF THE FISCAL COMMITTEES OF EACH HOUSE OF THE STATE LEGISLA-
 TURE NO LATER THAN THE MID-POINT OF THE INITIAL TERM  OF  THE  RESULTANT
 CONTRACT  A  REPORT ASSESSING THE VALIDITY OF THE PROCUREMENT METHOD AND
 COMPARING  ITS  RESULTS  TO  PROCUREMENT  METHODS  FOR  COMMODITIES  AND
 SERVICES OR TECHNOLOGY.
   § 3. Section 163 of the state finance law is amended by adding  a  new
 subdivision 17 to read as follows:
   17. COMPETITIVE NEGOTIATION. A. WHERE THE BASIS OF AWARD IS BEST VALUE
 AND  AFTER  COMPLETING AN INITIAL EVALUATION AND SCORING, A STATE AGENCY
 MAY CHOOSE TO EITHER MAKE AN AWARD TO THE BEST VALUE OFFERER PURSUANT TO
 SUBDIVISION FOUR OF THIS SECTION OR UNDERTAKE  COMPETITIVE  NEGOTIATIONS
 WITH  ALL  OFFERERS  OF  PROPOSALS  SUSCEPTIBLE  OF  BEING  SELECTED FOR
 CONTRACT AWARD, SO LONG AS THE AGENCY RESERVES THE RIGHT TO CONDUCT SUCH
 COMPETITIVE NEGOTIATIONS IN THE SOLICITATION.  THE NEGOTIATIONS SHALL BE
 CONDUCTED AS PROVIDED IN PARAGRAPH D OF THIS SUBDIVISION.
   B. COMPETITIVE NEGOTIATION MAY ONLY BE USED WHERE:
   (I) AT LEAST TWO OFFERERS ARE DEEMED SUSCEPTIBLE OF BEING SELECTED FOR
 CONTRACT AWARD;
   (II) IN THE EVENT THAT THE SOLICITATION INCLUDES OPTIONAL  COMPONENTS,
 THE  SOLICITATION  SHALL  REQUIRE ALL OFFERERS TO PROVIDE A PROPOSAL FOR
 ALL OPTIONS OR OTHERWISE BE DEEMED NONRESPONSIVE; AND
   (III) THE AGENCY HAS DETERMINED THAT USE  OF  COMPETITIVE  NEGOTIATION
 WILL  MAXIMIZE  THE  AGENCY'S ABILITY TO OBTAIN BEST VALUE, BASED ON THE
 AGENCY'S NEED AND THE SPECIFICATIONS SET FORTH IN THE SOLICITATION.
   C. THE AGENCY MUST DOCUMENT IN THE PROCUREMENT RECORD AND  IN  ADVANCE
 OF THE INITIAL RECEIPT OF OFFERS:
   (I)  THE  METHODOLOGY,  WHICH  SHALL  BE  QUANTIFIABLE  AND BASED ON A
 COMPARISON OF THE PROPOSALS' PRICE AND TECHNICAL  MERIT,  THAT  WILL  BE
 EMPLOYED  TO  ARRIVE  AT  A  COMPETITIVE RANGE THAT WILL DETERMINE WHICH
 PROPOSALS ARE TO BE CONSIDERED SUSCEPTIBLE TO AWARD; AND
   (II) A FAIR AND IMPARTIAL NEGOTIATION PROCEDURE, FORMULATED  WITH  THE
 GOAL  OF  ENSURING  SUSTAINED COMPETITION UNTIL AN AWARD IS RENDERED AND
 OBTAINING THE BEST VALUE FOR THE STATE.
   D. THE AGENCY SHALL CONDUCT WRITTEN  OR  ORAL  NEGOTIATIONS  WITH  ALL
 RESPONSIBLE  OFFERERS  WHO SUBMIT PROPOSALS IN THE COMPETITIVE RANGE. IN
 THE COURSE OF SUCH NEGOTIATIONS, THE AGENCY SHALL:
   (I) ADVISE THE OFFERER OF WAYS IN WHICH ITS PROPOSAL MAY  BE  IMPROVED
 SO  THAT THE OFFERER IS GIVEN AN OPPORTUNITY TO BETTER MEET THE AGENCY'S
 NEEDS;
   (II) CLARIFY ANY UNCERTAINTIES, AMBIGUITIES OR NON-MATERIAL DEVIATIONS
 IN THE PROPOSAL;
   (III) ADVISE THE OFFERER OF ANY TECHNICAL COMPONENTS IN  ITS  PROPOSAL
 THAT  MAY  NOT  BE  NECESSARY  TO  SATISFY THE AGENCY'S REQUIREMENTS AND
 REQUEST MODIFICATIONS AS APPROPRIATE;
   (IV) PROVIDE THE OFFERER A REASONABLE OPPORTUNITY TO SUBMIT ANY  COST,
 TECHNICAL OR OTHER REVISIONS TO ITS PROPOSAL IN RESPONSE TO ISSUES IDEN-
 TIFIED DURING NEGOTIATIONS; AND
   (V) DOCUMENT ANY ORAL NEGOTIATIONS FOR THE PROCUREMENT RECORD.
   E.  NEGOTIATIONS  MAY BE TAILORED TO EACH OFFERER'S PROPOSAL PROVIDED,
 HOWEVER, SUCH NEGOTIATIONS SHALL BE CONDUCTED WITH EACH  OFFERER  WITHIN
 THE  COMPETITIVE  RANGE  WITHOUT  DISCLOSING  INFORMATION CONCERNING ANY
 OTHER OFFERERS' PROPOSALS OR THE EVALUATION PROCESS. NEGOTIATIONS  SHALL
 CULMINATE IN A TECHNICAL SOLUTION FROM EACH OFFERER REMAINING WITHIN THE
 COMPETITIVE RANGE THAT IS DEEMED ACCEPTABLE TO MEET THE AGENCY'S NEED AS
 SET  FORTH  IN  THE  SOLICITATION.  AFTER  DISCUSSION OF THESE TECHNICAL
 SOLUTIONS IS COMPLETED, THE AGENCY SHALL SOLICIT A BEST AND FINAL  PRICE

 A. 7180                             5
 
 PROPOSAL  FROM  ALL  OFFERERS WITHIN THE COMPETITIVE RANGE. THE BEST AND
 FINAL PRICE SOLICITATION SHALL ENSURE THAT ALL OFFERERS ARE AFFORDED  AN
 EQUAL OPPORTUNITY TO RESPOND WITHIN A SPECIFIED PERIOD OF TIME.
   F.  WHERE  AN  AGENCY  CHOOSES  TO  UNDERTAKE COMPETITIVE NEGOTIATIONS
 INSTEAD OF MAKING A BEST VALUE AWARD AFTER  AN  INITIAL  EVALUATION  AND
 SCORING, THE FINAL AWARD SHALL BE MADE TO THE LOWEST RESPONSIBLE OFFERER
 AFTER RECEIVING A BEST AND FINAL PRICE ON A REVISED ACCEPTABLE PROPOSAL.
   §  4. Subdivision 9 of section 163 of the state finance law is amended
 by adding a new paragraph c-1 to read as follows:
   C-1. WHERE A STATE AGENCY DETERMINES THAT NON-MATERIAL CHANGES TO  THE
 SPECIFICATIONS  AS  SET  FORTH  IN THE SOLICITATION WOULD BE IN THE BEST
 INTEREST OF THE STATE AND, WHEN PROVIDED FOR IN THE SOLICITATION,  STATE
 AGENCIES  MAY  REQUEST  BEST AND FINAL OFFERS, WHICH SHALL BE IN WRITING
 AND SOLICITED IN THE SAME MANNER FROM  ALL  OFFERERS  DETERMINED  TO  BE
 SUSCEPTIBLE  OF  BEING  SELECTED  FOR CONTRACT AWARD, WITH THE INTENT OF
 ALLOWING AN OFFERER TO REVISE ITS COST; PROVIDED, HOWEVER, THAT A  STATE
 AGENCY MAY NOT MAKE A MODIFICATION TO THE SOLICITATION IF SUCH MODIFICA-
 TION  WOULD  PREJUDICE  ANY  BIDDER  OR  POTENTIAL  BIDDER AND, PROVIDED
 FURTHER, THAT NO BEST AND FINAL OFFER MAY BE ACCEPTED OR CONSIDERED BY A
 STATE AGENCY UNLESS SUCH BEST AND FINAL OFFER IS SUBMITTED  IN  RESPONSE
 TO A REQUEST BY THE STATE AGENCY.
   § 5. Paragraph e of subdivision 10 of section 163 of the state finance
 law,  as  amended by chapter 137 of the laws of 2008, is amended to read
 as follows:
   e. The commissioner may authorize purchases required by state agencies
 or other authorized purchasers by letting a contract pursuant to a writ-
 ten agreement, or by approving the use of a contract let by any  depart-
 ment,  agency  or instrumentality of the United States government and/or
 any department, agency, office, political subdivision or instrumentality
 of any state or states. A state agency purchaser shall document  in  the
 procurement  record  its  rationale for the use of a contract let by any
 department, agency or instrumentality of the United States government or
 any department, agency, office, political subdivision or instrumentality
 of any other state or states. Such rationale shall include, but need not
 be limited to, a determination of need, a consideration of the  procure-
 ment  method  by which the contract was awarded, an analysis of alterna-
 tive procurement sources including  an  explanation  why  a  competitive
 procurement or the use of a centralized contract let by the commissioner
 is  not  in  the  best  interest of the state, and the reasonableness of
 cost. THE AUTHORITY TO USE A CONTRACT LET BY ANOTHER GOVERNMENTAL ENTITY
 PURSUANT TO THIS PARAGRAPH IS INTENDED TO BENEFIT  THE  STATE  BY  USING
 CONTRACTS IN PLACE THAT PROVIDE FOR THE SAME SERVICE OR COMMODITY SOUGHT
 BY  A  STATE  AGENCY AT A PRICE DETERMINED TO BE REASONABLE BY THE STATE
 AGENCY. SUCH CONTRACTS ARE NOT INTENDED TO BE USED  PRIMARILY  TO  AVOID
 COMPETITIVE  BIDDING.  USE  OF MULTIPLE AWARD CONTRACTS PURSUANT TO THIS
 PARAGRAPH SHALL FOLLOW THE SAME BASIS OF SELECTION  AMONG  THE  MULTIPLE
 AWARDEES  AS  WAS  PRESCRIBED  BY  THE ORIGINAL CONTRACTING GOVERNMENTAL
 ENTITY.
   § 6. Subdivision 3 of section 112 of the state finance law, as amended
 by section 2-c of part F of chapter 57 of the laws of 2016,  is  amended
 to read as follows:
   3.  A  contract  or  other  instrument wherein the state or any of its
 officers, agencies, boards or commissions agrees to give a consideration
 other than the payment of money, when the value or reasonably  estimated
 value  of such consideration exceeds twenty-five thousand dollars, shall
 not become a valid enforceable contract unless such  contract  or  other

 A. 7180                             6
 
 instrument  shall  first be approved by the comptroller and filed in his
 office. FOR PURPOSES OF THIS SUBDIVISION, WHERE CONSIDERATION CANNOT  BE
 DETERMINED  IN  TERMS  OF MONETARY VALUE, IT SHALL BE VALUED IN TERMS OF
 INTRINSIC VALUE.
   §  7.  Subdivision (m) of section 1-c of the legislative law, as added
 by chapter 1 of the laws of 2005, is amended to read as follows:
   (m) The term  "restricted  period"  shall  mean  the  period  of  time
 commencing  with  the  earliest  POSTING,  ON  A  GOVERNMENTAL  ENTITY'S
 WEBSITE, IN A NEWSPAPER OF GENERAL CIRCULATION, OR  IN  THE  PROCUREMENT
 OPPORTUNITIES  NEWSLETTER  IN  ACCORDANCE  WITH  ARTICLE  FOUR-C  OF THE
 ECONOMIC DEVELOPMENT LAW OF written notice, advertisement  or  solicita-
 tion  of a request for proposal, invitation for bids, or solicitation of
 proposals, or any other method PROVIDED FOR BY  LAW  OR  REGULATION  for
 soliciting a response from offerers intending to result in a procurement
 contract  with  a  [state agency, either house of the state legislature,
 the unified court system, or a municipal agency, as that term is defined
 by paragraph (ii) of subdivision (s) of this section,  and  ending  with
 the  final contract award and approval by the state agency, either house
 of the state legislature, the unified court system, or a municipal agen-
 cy, as that term is defined by paragraph (ii) of subdivision (s) of this
 section,] GOVERNMENTAL ENTITY AND ENDING WITH THE FINAL  CONTRACT  AWARD
 AND APPROVAL BY THE GOVERNMENTAL ENTITY and, where applicable, the state
 comptroller. FOR THE PURPOSES OF THIS SUBDIVISION, "GOVERNMENTAL ENTITY"
 SHALL HAVE THE SAME MEANING AS PARAGRAPH A OF SUBDIVISION ONE OF SECTION
 ONE HUNDRED THIRTY-NINE-J OF THE STATE FINANCE LAW.
   §  8.  This  act  shall  take  effect  immediately; provided, however,
 section one of this act shall take effect on the one  hundred  eightieth
 day  after  it shall have become a law; provided, further, however, that
 the provisions of sections two, three, four, five and six  of  this  act
 shall  apply  to  any  procurement  initiated  on  or  after  such date;
 provided, further however, that the amendments to  section  163  of  the
 state finance law made by sections two, three, four and five of this act
 shall not affect the repeal of such section as provided in subdivision 5
 of  section 362 of chapter 83 of the laws of 1995, as amended, and shall
 be deemed repealed therewith.