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S04475 Summary:

BILL NOS04475A
 
SAME ASSAME AS A05759-A
 
SPONSORDEFRANCISCO
 
COSPNSRAKSHAR, AMEDORE, HANNON, RANZENHOFER, VALESKY
 
MLTSPNSR
 
Amd 2879, Pub Auth L
 
Authorizes public authorities and public benefit corporations to negotiate with professional firms providing architectural or engineering services in order from the most qualified to the least qualified with regard to the provision of services to the authority or corporation.
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S04475 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4475--A
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                     March 23, 2015
                                       ___________
 
        Introduced  by  Sens.  DeFRANCISCO,  AMEDORE,  VALESKY -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Corporations,  Authorities  and  Commissions  --  recommitted  to  the
          Committee on Corporations, Authorities and Commissions  in  accordance
          with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee
 
        AN ACT to amend the public authorities law,  in  relation  to  requiring
          public  authorities  and public benefit corporations to negotiate with
          professional firms providing architectural or engineering services  in
          order  from  the  most qualified to the least qualified with regard to
          the provision of services to the authority or corporation
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subparagraph  (iv)  of  paragraph (b) of subdivision 3 of
     2  section 2879 of the public authorities law, as amended by chapter 383 of
     3  the laws of 1994, is amended to read as follows:
     4    (iv) as used in this subparagraph, the term "professional firm"  shall
     5  be defined as any individual or sole proprietorship, partnership, corpo-
     6  ration,  association, or other legal entity permitted by law to practice
     7  the professions of architecture, engineering or surveying.
     8    It is the policy of New York state to negotiate contracts  for  archi-
     9  tectural  and/or  engineering  services and/or surveying services on the
    10  basis of demonstrated competence  and  qualification  for  the  type  of
    11  professional services required and at fair and reasonable fees.
    12    In   the  procurement  of  architectural,  engineering  and  surveying
    13  services, the corporation is required to  encourage  professional  firms
    14  engaged  in  the  lawful  practice of the profession to submit an annual
    15  statement of qualifications and performance data.  The  corporation  for
    16  each  proposed  project  is  required  to evaluate current statements of
    17  qualifications and performance data on file with the  corporation.    If
    18  desired,  the  corporation  may  conduct  discussions with three or more
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09702-02-6

        S. 4475--A                          2
 
     1  professional firms regarding anticipated design  concepts  and  proposed
     2  methods  of  approach  to the assignment. The corporation is required to
     3  select, in order of preference, based upon criteria established  by  the
     4  corporation, no less than three professional firms deemed to be the most
     5  highly qualified to provide the services required.
     6    Every corporation is required to negotiate a contract with the highest
     7  qualified   professional   firm  for  architectural  and/or  engineering
     8  services and/or surveying services at compensation which the corporation
     9  determines in writing to be fair and reasonable to such corporation.  In
    10  making  this  decision, the corporation is required to take into account
    11  the estimated value of the services to be rendered, including the costs,
    12  the scope, complexity and professional nature thereof.
    13    The corporation shall not refuse to negotiate with a professional firm
    14  solely because the ratio of the "allowable  indirect  costs"  to  direct
    15  labor  costs  of  the  professional firm or the hourly labor rate in any
    16  labor category of the professional firm exceeds a  limitation  generally
    17  set by the corporation in the determination of the reasonableness of the
    18  estimated  cost of services to be rendered by the professional firm, but
    19  rather the corporation should also consider the reasonableness  of  cost
    20  based  on  the  total  estimated cost of the service of the professional
    21  firm which should include, among other  things,  all  the  direct  labor
    22  costs  of  the  professional  firm for such services plus all "allowable
    23  indirect costs," other  direct  costs,  and  negotiated  profit  of  the
    24  professional firm. "Allowable indirect costs" of a professional firm are
    25  defined  as  those costs generally associated with overhead which cannot
    26  be specifically identified with a single project  or  contract  and  are
    27  considered  reasonable  and  allowable  under specific state contract or
    28  allowability limits.  Should the corporation choose to engage in a qual-
    29  ification based procurement and be unable to  negotiate  a  satisfactory
    30  contract with the professional firm considered to be the most qualified,
    31  at  a  fee  the  corporation determines to be fair and reasonable to the
    32  corporation, negotiations with that professional firm shall be  formally
    33  terminated.   The corporation shall then undertake negotiations with the
    34  second most qualified professional firm. Failing accord with the  second
    35  most  qualified professional firm, the corporation shall formally termi-
    36  nate negotiations. The corporation  shall  then  undertake  negotiations
    37  with  the third most qualified professional firm. Should the corporation
    38  be unable to negotiate a satisfactory contract with any of the  selected
    39  professional  firms,  it  shall  select additional professional firms in
    40  order of their competence and qualifications and it shall continue nego-
    41  tiations in accordance with this section until an agreement is  reached.
    42  The  provisions  of  this  subparagraph  shall only apply to engineering
    43  and/or architectural services and/or surveying  services  in  excess  of
    44  twenty-five  thousand  dollars  and  shall not apply to the metropolitan
    45  transportation authority, the New York city  transit  authority  or  the
    46  Triborough bridge and tunnel authority or to any of their subsidiaries.
    47    § 2. This act shall take effect immediately.
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