Provides an exemption for school districts from requirements for separate specifications for public works; permits school district to assign contract to a single responsible person, firm or corporation; permits school district to require a general contractor to submit proposed subcontractor bids; directs the commissioner of education to prepare a study on the impact of such exemption.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2622
SPONSOR: Galef (MS) TITLE OF BILL: An act to amend the education law and the general
municipal law, in relation to exempting school districts from require-
ments for separate specifications for public work; and providing for the
repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to provide an exemption for school
districts from the requirements for separate specifications for public
works.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. The opening paragraph of section 308 of the Education Law is
designated subdivision 1 and a new subdivision 2 is added to read as
follows: 2. The commissioner shall commission a study on the impact of
exemption school districts from the separate bidding requirements of the
general municipal law. Such study shall include the impact on time
frames for completing construction and improvement projects, the overall
costs of such projects, the quality of work performed and the integrity
of the bidding process. The commissioner shall issue such study to the
governor, the state comptroller, the temporary president of the senate
and the speaker of the assembly in the fourth year following the effec-
tive date of this subdivision.
Section 2. Section 101 of the General Municipal Law is amended by adding
a new subdivision to read as follows: 6. a. Notwithstanding any other
provisions of this section, specifications for work pertaining to the
construction, addition or improvement of any school district buildings
or appurtenant facilities may provide for assignment of responsibility
for supervision and coordination of any or all of the contracts for such
work to a single responsible and reliable person, firm or corporation.
6. b. Where a school district elects to provide for the assignment of a
contract to a single person, firm or corporation, such school district
may require the apparent low bidder and, at the discretion of the school
district, the apparent second low bidder, to submit to the district the
names of the bidder's proposed subcontractors for the electrical, heat-
ing, ventilating, air conditioning and plumbing work. Additional details
are given. 6. c. Payment to the proposed subcontractors shall be in
accordance with the provisions of section 106-b of this article. In the
event any such subcontractor is not paid by the contractor, the subcon-
tractor shall immediately notify the school district of such fact. 6. d.
With the submission of the names of t he proposed subcontractors, the
bidder shall specify the value to be paid each such subcontractor for
the work to be performed by such subcontractor. 6. e. A school district
may reject any or all bids or waive any informality in a bid if it
reasonably believes that the public interest will be promoted thereby. A
school district may reject any bid if, in its judgment, the business
organization, resources, financial standing or experience of the bidder
justifies such rejection in view of work to be performed. 6. f. The
provisions of this subdivision shall not apply to the New York City
School Construction Authority.
Section 3. Establishes the effective date.
JUSTIFICATION:
Currently, the WICKS statute requires school districts to award separate
bids for general contracting, electrical, plumbing and
beating/venting/air conditioning on all projects exceeding $550,000.
New York State is the only state to impose these requirements on public
projects. Abolishing the WICKS LAW has been a priority issue for school
officials for the last few decades, as well as many concerned real prop-
erty tax payers. School officials claim that without a single contractor
in charge, coordination of the project presents difficulties for a
district. In addition, delays often occur resulting in a costlier
project and more disruptions for the students and school personnel while
construction is ongoing.
While most public work projects are required to award separate bids,
exceptions have been granted over the years to allow for the election of
single bid contracts. Exceptions include the New York City Construction
Authority (Chapter 738, L.1988) which has had an exemption from WICKS
since 1988 and was again recently renewed in 2004 for another five year
period, in addition, individual exemptions have been made for specific
school projects for the Ithaca City School District (Chapter 500,
L.1997), Niagara. Falls School District (Chapter 5622, L1996), and the
Buffalo School District (Chapter 605, L.2000). The State University
Construction Fund (SUCF) is also free from the WICKS mandate. SUCF has
built over 52 billion worth of SUNY campuses and has demonstrated that
"bid shopping" has not been a problem on single award contracts.
In 1999, a WICKS analysis on public construction in New York City
provided by Price Waterhouse Coopers concluded that projects built under
the WICKS law cost significantly more and took longer to build than
similar projects not subject to the WICKS requirements. Other studies
and reports (NYS School Boards Association, 1991; NYS Division of Budg-
et, 1917; Niagara Falls School District, 1996) had similar findings
indicating a 10% to 30% savings on projects completed without WICKS.
School districts faced with fiscal constraints need the flexibility
offered in this bill and taxpayers need the relief currently afforded to
the New York City School Construct Authority. The fact that the State
has continuously renewed the WICKS exemption for New York City schools
since 1988 indicates that a cost savings has been achieved by eliminat-
ing the multiple award requirements. School districts outside of the
City of New York should be afforded the same opportunity to award a
single contractor instead of the presently required multiple contrac-
tors. Nothing in this bill preludes a school board, in its discretion,
from entering into a Project Labor Agreement.
PRIOR LEGISLATIVE HISTORY:
A. 6155 of 2015/2016
A. 5339 of 2013/2014
A. 3682 and S. 699 of 2011/2012
A. 3748 and S. 1254 of 2009/2010
A. 3682-B and S. 2986-A of 2007/2008
A. 8081-A and S. 4759-A of 2005/2006
FISCAL IMPLICATIONS:
The fiscal implications of this legislation is an anticipated cost
savings to the State as the State provides school districts with a
percentage of their building costs through building aid. Significant
cost savings to the local school districts is also anticipated.
EFFECTIVE DATE:
This act shall take effect on the first of September next succeeding the
date on which it shall have become a law, and shall apply to all
contracts advertised or solicited for bid on or after such effective
date; provided that the provisions of this act shall expire and be
deemed repealed five years after such effective date.
