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This entry was published on 2014-09-22
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Contracts of the authority
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 6
§ 1734. Contracts of the authority. 1. a. All contracts for the
construction, reconstruction, improvement, rehabilitation, maintenance,
repair, furnishing, equipping of or otherwise providing for educational
facilities for the city board may be awarded in accordance with the
provisions of this section, notwithstanding the provisions of section
eight of the public buildings law, section one hundred three of the
general municipal law, section one hundred thirty-five of the state
finance law, section seven of the New York state financial emergency act
for the city of New York or of any other provision of general, special
or local law, charter or administrative code.

b. The authority shall be subject to the provisions of section one
hundred one of the general municipal law.

2. a. Except as otherwise provided in this section, all purchase
contracts for supplies, materials or equipment involving an estimated
expenditure in excess of ten thousand dollars and all contracts for
public work involving an estimated expenditure in excess of fifty
thousand dollars shall be awarded by the authority to the lowest
responsible bidder after obtaining sealed bids in the manner hereinafter
set forth. For purposes hereof, contracts for public work shall exclude
contracts for personal, engineering and architectural, or professional

b. The authority may reject all bids and obtain new bids in the manner
provided by this section when it deems it in the public interest to do
so or, in cases where two or more responsible bidders submit identical
bids which are the lowest bids, award the contract to any of such
bidders or obtain new bids from such bidders. Nothing herein shall
obligate the authority to seek new bids after the rejection of bids or
after cancellation of an invitation to bid. Nothing in this section
shall prohibit the evaluation of bids on the basis of costs or savings
including life cycle costs of the item to be purchased, discounts, and
inspection services so long as the invitation to bid reasonably sets
forth the criteria to be used in evaluating such costs or savings. Life
cycle costs may include but shall not be limited to costs or savings
associated with installation, energy use, maintenance, operation and
salvage or disposal.

3. a. Notwithstanding the provisions of paragraph a of subdivision two
of this section, the authority shall establish guidelines governing the
qualifications of bidders entering into contracts for the construction,
reconstruction, improvement, rehabilitation, maintenance, repair,
furnishing, equipping of or otherwise providing for educational
facilities for the city board. The bidding may be restricted to those
who have qualified prior to the receipt of bids according to standards
fixed by the authority; provided, however, that the award of contracts
shall, to the extent not inconsistent with this paragraph, be in
accordance with paragraph b of subdivision two of this section.

b. In determining whether a prospective bidder qualifies for inclusion
on a list of pre-qualified bidders, the authority shall consider (1) the
experience and past performance of the prospective bidder; (2) the
prospective bidder's ability to undertake work; and (3) the financial
capability, responsibility and reliability of prospective bidders. The
authority may also consider such other factors as it deems appropriate.

c. The authority shall, not less than twice each year, publish, in a
newspaper of general circulation in the city of New York, an
advertisement requesting prospective bidders to submit qualification
statements. Lists of pre-qualified bidders shall be reviewed and updated
not less than annually by the authority. The authority shall delete from
the list of pre-qualified bidders any bidder who has failed to perform
adequately or satisfactorily for the authority, the city board or any
other city or state agency or authority.

d. Lists of pre-qualified bidders may be established on a
project-specific basis; provided, however, that any such list shall have
no less than five bidders.

4. a. Advertisement for bids, when required by this section, shall be
published at least once in a newspaper of general circulation in the
city of New York. Publication in such a newspaper shall not be required
(i) if bids for contracts for supplies, materials or equipment are of a
type regularly purchased by the authority and are to be solicited from a
list of potential suppliers, if such list is or has been developed
consistent with the provisions of subdivision six of this section or
(ii) if bids are to be solicited from a list of pre-qualified bidders
pursuant to the provisions of paragraph d of subdivision three of this
section. Any such advertisement shall contain a statement of the time
and place where all bids received pursuant to such notice will be
publicly opened and read. At least fourteen days shall elapse between
the first publication of such advertisement or the solicitation of bids,
as the case may be, and the date of opening and reading of bids.

b. The authority may designate any officer or employee to open the
bids at the time and place bids are to be opened and may designate an
officer to award the contract to the lowest responsible bidder. Such
designee shall make a record of all bids in such form and detail as the
authority shall prescribe. All bids received shall be publicly opened
and read at the time and place specified in the advertisement or at the
time of solicitation, or to which the opening and reading have been
adjourned by the authority. All bidders shall be notified of the time
and place of any such adjournment.

5. Notwithstanding the foregoing, the authority may by resolution
approved by a vote of its members declare (i) that competitive bidding
for non-construction contracts is impractical or inappropriate because
of the existence of any of the circumstances hereinafter set forth or
(ii) that competitive bidding for construction contracts is impractical
or inappropriate because of the existence of the circumstances set forth
in paragraph a of this subdivision. Thereafter the authority may proceed
to award contracts without complying with the requirements of
subdivision two or three of this section. In each case where the
authority declares competitive bidding impractical or inappropriate, it
shall state the reason therefor in writing and summarize any
negotiations that have been conducted and shall be made available upon
request. Except for contracts awarded pursuant to paragraphs a, b and c
of this subdivision, the authority shall not award any contract pursuant
to this subdivision earlier than thirty days from the date on which the
authority declares that competitive bidding is impractical or
inappropriate. Competitive bidding may only be declared impractical or
inappropriate where:

a. the existence of an emergency involving danger to life, safety or
property requires immediate action and cannot await competitive bidding
or the item to be purchased is essential to efficient operation or the
adequate provision of service by the city board or the authority and as
a consequence of unforeseen circumstance such purchase cannot await
competitive bidding;

b. the authority receives no responsive bids or only a single
responsive bid in response to an invitation for competitive bids;

c. the item is available through an existing contract between a vendor
and (i) another public authority provided that such other authority
utilized a process of competitive bidding or a process of competitive
requests for proposals to award such contracts, or (ii) the city board,
or (iii) the state of New York, or (iv) the city of New York, provided
that in any case when under this paragraph the authority determines that
obtaining such item thereby would be in the public interest and sets
forth the reason for such determination. The authority shall accept sole
responsibility for any payment due the vendor as a result of the
authority's order; or

d. the authority determines that it is in the public interest to award
contracts pursuant to a process for competitive requests for proposals
as hereinafter set forth. For purposes of this section, a process for
competitive requests for proposals shall mean a method of soliciting
proposals and awarding a contract on the basis of a formal evaluation of
the characteristics, such as quality, cost, delivery schedule and
financing of such proposals against stated selection criteria. Public
notice of the requests for proposals shall be given in the same manner
as provided in subdivision three of this section and shall include the
selection criteria. In the event the authority makes a material change
in the selection criteria from those previously stated in the notice, it
will inform all proposers of such change and permit proposers to modify
their proposals.

(i) The authority may award a contract pursuant to this paragraph only
after a resolution approved by a vote of its members at a public meeting
of the authority with such resolution (A) disclosing the other proposers
and the substance of their proposals, (B) summarizing the negotiation
process including the opportunities, if any, available to proposers to
present and modify their proposals, and (C) setting forth the criteria
upon which the selection was made.

(ii) Nothing in this paragraph shall require or preclude (A)
negotiations with any proposers following the receipt of responses to
the request for proposals or (B) the rejection of any or all proposals
at any time. Upon the rejection of all proposals, the authority may
solicit new proposals or bids in any manner prescribed in this section.

6. Upon the adoption of a resolution by the authority stating, for
reasons of efficiency, economy, compatibility or maintenance
reliability, that there is a need for standardization, the authority may
establish procedures whereby particular supplies, materials or equipment
are identified on a qualified products list. Such procedures shall
provide for products or vendors to be added to or deleted from such list
and shall include provisions for public advertisement of the manner in
which such lists are compiled. The authority shall review such list no
less than twice a year for the purpose of making such modifications.
Contracts for particular supplies, materials or equipment identified on
a qualified products list may be awarded by the authority to the lowest
responsible bidder after obtaining sealed bids in accordance with this
section or without competitive sealed bids in instances when the item is
available from only a single source, except that the authority may
dispense with advertising provided that it mails copies of the
invitation to bid to all vendors of the particular item on the qualified
products list.

7. The authority shall compile a list of potential sources of
supplies, materials or equipment regularly purchased. The authority
shall, by resolution, set forth the procedures it has established to
identify new sources and to notify such new sources of the opportunity
to bid for contracts for the purchase of supplies, materials or
equipment. Such procedures shall include, but not be limited to
advertising in trade journals.

8. The authority shall be subject to the provisions of section
twenty-eight hundred seventy-nine of this chapter in awarding contracts
for personal services.

9. The board shall, by resolution, establish procedures for the fair
and equitable resolution of contract disputes. Prior to the
establishment of such policy, the board shall publish in appropriate
publications a notice of such policy and invite comment from interested
parties, including, but not limited to representatives of construction
organizations. Such notice shall also state that the authority will hold
a public hearing to consider the policy at a specified time and place on
a date not less than ten days after such publication, and the authority
shall conduct the public hearing pursuant to such notice.

10. The provisions of article eight of the labor law shall be
applicable to all contracts entered into directly or indirectly by the

11. The provisions of subdivision one of section one hundred six-b of
the general municipal law shall apply to the authority, provided,
however, that the authority may retain up to four times the value of any
remaining items to be completed.