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SECTION 151
Authority construction contracts, cancellation of contracts, disqualification to contract with authority, statement of non-collusion in b...
Public Housing (PBG) CHAPTER 44-A, ARTICLE 8
§ 151. Authority construction contracts, cancellation of contracts,
disqualification to contract with authority, statement of non-collusion
in bids or proposals. 1. Contracts of an authority for demolition,
excavation, construction, alteration, renovation or for purchase of
materials or supplies shall be in such form and contain such combination
of work or trades and such terms and provisions as may be deemed
advisable by the authority. All such contracts, except contracts for the
purchase of materials or supplies, in excess of fifty thousand dollars
shall be made on sealed bids, in compliance with a public notice
advertised at least once, not less than twenty days before the date set
for the receipt of bids, in the official publication of the
municipality, or if none exists, in a newspaper circulating in the
municipality. With respect to contracts for the purchase of materials or
supplies in excess of twenty-five thousand dollars, the period of
advertisement shall be not less than ten days before the date set for
the receipt of bids. If the authority shall deem it to its best interest
or necessary or desirable to effectuate the purposes of this chapter or
the economy and efficiency in construction and operation of a project,
the authority by majority vote of its members may either reject all bids
or readvertise for bids or by unanimous vote of its members may accept a
bid other than the lowest bid. In any such contract there may be
inserted in the discretion of the authority, a provision that additional
work may be done or materials and supplies furnished or that work or
materials may be omitted for the purpose of completing such contract in
accordance with any changes, omissions or additions in the
specifications of any such contract. Each contract shall provide that in
the case of default by the contractor the authority may adopt on behalf
of the authority all subcontracts made by such contractor and all such
subcontractors shall be bound by such adoption if made, and the
authority may relet, with or without public advertisement, the work
specified in the original contract, exclusive of so much thereof as
shall be provided in any subcontracts so adopted. An authority may make
rules and regulations governing the qualifications of bidders, the
submission of combined bids by two or more contractors, the award and
execution of the contract, security, if any, for execution and
performance of the contract, and any other matters relating to the
contract. The bidding may be restricted to those who shall have
qualified prior to the receipt of bids according to standards fixed by
the authority, provided that notice or notices for the submission of
qualifications shall be published in the official publication of the
municipality, or if none exists, in a newspaper circulating in the
municipality, at least once, not less than ten days prior to the date
fixed for the filing of qualifications. Nothing in this section shall
be construed to limit the power of the authority to carry out a project
or any part thereof directly by the officers, agencies and employees of
the authority, or by any government, or to purchase or acquire materials
or supplies through the purchasing officer, department or agency of a
government.

2. A clause shall be inserted in all specifications or contracts
hereafter made or awarded by any municipal housing authority or by any
official of any municipal housing authority, for work or services
performed or to be performed or goods sold or to be sold, to provide
that upon the refusal by a person who directly or indirectly derives a
monetary benefit which is traceable to such a specification or contract,
when called before a grand jury to testify concerning any transaction or
contract had with the state or of any political subdivision thereof, a
public authority, a municipal housing authority or with any public
department, agency or official of the state or of any political
subdivision thereof or of any public authority or of a municipal housing
authority or subcontract thereunder, to sign a waiver of immunity
against subsequent criminal prosecution or to answer any relevant
question concerning such transaction, contract or subcontract.

(a) Such person and any firm, partnership or corporation of which he
is a member, partner, director or officer, shall be disqualified from
thereafter selling to or submitting bids to or receiving awards from or
entering into any contracts with any municipal housing authority or
official thereof or any subcontract thereunder, or sub-contracting with
any person, firm, partnership or corporation who or which has entered
into any such contract or contracts, in relation to such contract or
contracts, for goods, work or services, for a period of five years after
such refusal. No person, firm, partnership or corporation who or which
has entered into any contract or contracts with the state, or any
political subdivision thereof, a public authority, a municipal housing
authority, or with any public department, agency or official of the
state or any political subdivision thereof or of any public authority,
or of a municipal housing authority, for goods, work or services, shall
enter into a sub-contract thereon with any person, firm or corporation
which is disqualified to contract as provided herein. Such clause shall
also provide that

(b) Any and all contracts made with any municipal housing authority or
official thereof or any subcontract thereunder, since the effective date
of this law, by such person and by any firm, partnership or corporation
of which he is a member, partner, director or officer may be cancelled
or terminated by the municipal housing authority without incurring any
penalty or damages on account of such cancellation or termination, but
any monies owing by the municipal housing authority or by a contractor
or subcontractor thereunder for goods delivered or work done prior to
the cancellation or termination shall be paid.

3. (a) Any person who, when called before a grand jury to testify
concerning any transaction or contract had with the state, any political
subdivision thereof, a public authority, a municipal housing authority
or with a public department, agency or official of the state or of any
political subdivision thereof or of a public authority or of a municipal
housing authority, refuses to sign a waiver of immunity against
subsequent criminal prosecution or to answer any relevant question
concerning such transaction or contract, and any firm, partnership or
corporation of which he is a member, partner, director or officer shall
be disqualified from thereafter selling to or submitting bids to or
receiving awards from or entering into any contracts with any municipal
housing authority or any official of any municipal housing authority
created by the state or any political subdivision, or sub-contracting
with any person, firm, partnership or corporation who or which has
entered into any such contract or contracts, in relation to such
contract or contracts, for goods, work or services, for a period of five
years after such refusal or until a disqualification shall be removed
pursuant to the applicable provisions of law. No person, firm,
partnership or corporation who or which has entered into any contract or
contracts with the state, or any political subdivision thereof, a public
authority, a municipal housing authority, or with any public department,
agency or official of the state or any political subdivision thereof or
of any public authority, or of a municipal housing authority, for goods,
work or services, shall enter into a sub-contract thereon with any
person, firm or corporation which is disqualified to contract as
provided herein.

(b) It shall be the duty of the officer conducting the investigation
before the grand jury before which the refusal occurs to send notice of
such refusal, together with the names of any firm, partnership or
corporation of which the person so refusing is known to be a member,
partner, officer or director, to the superintendent of public works of
the state of New York and the appropriate departments, agencies and
officials of the state, political subdivisions thereof or public
authorities with whom the person so refusing and any firm, partnership
or corporation of which he is a member, partner, director or officer, is
known to have a contract.

4. (a) Any firm, partnership or corporation which has become subject
to the cancellation or termination of a contract or subcontract or
disqualification to contract or subcontract on account of the refusal of
a member, partner, director or officer thereof to waive immunity when
called to testify, as provided in subdivisions two and three of this
section, may, upon ten days' notice to the attorney general and to the
officer who conducted the investigation before the grand jury in which
the refusal occurred, make an application at a special term of the
supreme court held within the judicial district in which the refusal
occurred for an order discontinuing the disqualification. Such
application shall be in the form of a petition setting forth grounds,
including that the cooperation by petitioner with the grand jury at the
time of the refusal was such, and the amount and degree of control and
financial interest, if any, in the petitioning firm, partnership or
corporation by the member, partner, officer or director who refused to
waive immunity is such that it will not be in the public interest to
cancel or terminate petitioner's contracts or subcontracts or to
continue the disqualification, as provided in subdivisions two and three
of this section.

A copy of the petition and accompanying papers shall be served with
the notices to be given pursuant to this subdivision.

(b) Upon the filing of such petition the court may stay as to
petitioner, pending a decision upon the petition, the cancellation or
termination of any contracts or subcontracts resulting from such refusal
upon such terms as to notice or otherwise as may be just.

(c) At least two days prior to the return day, the officer who
conducted the investigation before the grand jury and the attorney
general may file answers to the petition or apply for an order
dismissing the petition as a matter of law. On or before the return day
the petitioner may file a reply to the answer.

(d) Upon the return day the court may, upon the petition and answer
and other papers filed, forthwith render such final order as the case
requires, or if a triable issue of fact is duly raised, it shall
forthwith be tried before a court sitting without a jury or before a
referee. The provisions of statute or rule governing references in an
action shall apply to a reference under this subdivision.

(e) The court shall render a final order dismissing the petition on
the merits or discontinuing the disqualification upon the ground that
the public interest would be served by its discontinuance, and granting
such other relief as to the cancellation or termination of contracts or
subcontracts as may be appropriate, but without costs to petitioner.

5. (a) Every bid or proposal hereafter made to a municipal housing
authority where competitive bidding is required by statute, rule or
regulation, for work or services performed or to be performed or goods
sold or to be sold shall contain the following statement subscribed by
the bidder and affirmed by such bidder as true under the penalties of
perjury: Non-collusive bidding certification.

(1) By submission of this bid, each bidder and each person signing on
behalf of any bidder certifies, and in the case of a joint bid each
party thereto certifies as to its own organization, under penalty of
perjury, that to the best of his knowledge and belief:

(i) The prices in this bid have been arrived at independently without
collusion, consultation, communication, or agreement, for the purpose of
restricting competition, as to any matter relating to such prices with
any other bidder or with any competitor;

(ii) Unless otherwise required by law, the prices which have been
quoted in this bid have not been knowingly disclosed by the bidder and
will not knowingly be disclosed by the bidder prior to opening, directly
or indirectly, to any other bidder or to any competitor; and

(iii) No attempt has been made or will be made by the bidder to induce
any other person, partnership or corporation to submit or not to submit
a bid for the purpose of restricting competition.

(2) A bid shall not be considered for award nor shall any award be
made where (1) (i) (ii) and (iii) above have not been complied with;
provided however, that if in any case the bidder cannot make the
foregoing certification, the bidder shall so state and shall furnish
with the bid a signed statement which sets forth in detail the reasons
therefor. Where (1) (i) (ii) and (iii) above have not been complied
with, the bid shall not be considered for award nor shall any award be
made unless the municipal housing authority to which the bid is made
determines that such disclosure was not made for the purpose of
restricting competition.

The fact that a bidder (a) has published price lists, rates, or
tariffs covering items being procured, (b) has informed prospective
customers of proposed or pending publication of new or revised price
lists for such items, or (c) has sold the same items to other customers
at the same prices being bid, does not constitute, without more, a
disclosure within the meaning of paragraph (a) of this subdivision.

(b) Any bid hereafter made to any municipal housing authority by a
corporate bidder for work or services performed or to be performed or
goods sold or to be sold, where competitive bidding is required by
statute, rule, regulation, or local law, and where such bid contains the
certification referred to in paragraph (a) of this subdivision, shall be
deemed to have been authorized by the board of directors of the bidder,
and such authorization shall be deemed to include the signing and
submission of the bid and the inclusion therein of the certificate as to
non-collusion as the act and deed of the corporation.

6. Notwithstanding the provisions of any other law to the contrary,
all contracts for public work awarded pursuant to this section by a
municipal housing authority created under article thirteen of the public
housing law shall be in accordance with sections one hundred six, one
hundred six-a and one hundred six-b of the general municipal law.