NY State Assembly Bill 2009-A7056

Assembly Bill A7056

2009-2010 Legislative Session

Requires public authorities to negotiate with most qualified architectural and engineering professional firms before negotiating with other firms

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 04, 2010	referred to finance delivered to senate passed assembly
Jan 06, 2010	ordered to third reading cal.466 returned to assembly died in senate
Jul 16, 2009	recommitted to rules 3rd reading cal.910 substituted for s3531b
Jun 22, 2009	referred to rules delivered to senate passed assembly ordered to third reading rules cal.589 rules report cal.589 reported
Jun 19, 2009	amend and recommit to rules 7056b
Jun 09, 2009	reported referred to rules
May 12, 2009	print number 7056a
May 12, 2009	amend and recommit to corporations, authorities and commissions
Mar 19, 2009	referred to corporations, authorities and commissions

Bill Amendments

Original

B (Active)

2009-A7056 - Details

Current Committee:: Senate Finance
Law Section:: Public Authorities Law
Laws Affected:: Amd §2879, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A6814
2013-2014: A7268
2015-2016: A5759
2017-2018: A5750

2009-A7056 - Summary

Requires 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.

2009-A7056 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7056

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 19, 2009
                               ___________

Introduced  by  M.  of  A.  BENEDETTO  --  read once and referred to the
  Committee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law,  in  relation  to  requiring
  public  authorities and public benefits 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:

  Section  1.  Section  2879 of the public authorities law is amended by
adding a new subdivision 10 to read as follows:
  10. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, EVERY  CORPO-
RATION  SHALL  NEGOTIATE  A  CONTRACT WITH THE HIGHEST QUALIFIED PROFES-
SIONAL FIRM FOR ARCHITECTURAL AND/OR ENGINEERING SERVICES AND/OR SURVEY-
ING SERVICES AND/OR LANDSCAPE  ARCHITECTURAL  SERVICES  AT  COMPENSATION
WHICH THE CORPORATION DETERMINES IN WRITING TO BE FAIR AND REASONABLE TO
SUCH  CORPORATION.  IN  MAKING THIS DECISION, THE CORPORATION SHALL TAKE
INTO ACCOUNT THE ESTIMATED VALUE OF THE SERVICES TO BE RENDERED, INCLUD-
ING THE COSTS, THE SCOPE, COMPLEXITY AND  PROFESSIONAL  NATURE  THEREOF.
THE  CORPORATION  SHALL NOT REFUSE TO NEGOTIATE WITH A PROFESSIONAL FIRM
SOLELY BECAUSE THE RATION OF THE "ALLOWABLE INDIRECT  COSTS"  TO  DIRECT
LABOR  COSTS OF THE PROFESSIONAL FIRM EXCEEDS A LIMITATION GENERALLY SET
BY THE CORPORATION IN THE DETERMINATION OF  THE  REASONABLENESS  OF  THE
ESTIMATED  COST OF SERVICES TO BE RENDERED BY THE PROFESSIONAL FIRM, BUT
RATHER THE CORPORATION SHALL CONSIDER THE REASONABLENESS OF  COST  BASED
ON  THE  TOTAL  ESTIMATED  COST  OF THE SERVICE OF THE PROFESSIONAL FIRM
WHICH SHALL INCLUDE, AMONG OTHER THINGS, ALL THE DIRECT LABOR  COSTS  OF
THE  PROFESSIONAL  FIRM  FOR  SUCH SERVICES PLUS ALL "ALLOWABLE INDIRECT
COSTS", OTHER DIRECT COSTS AND NEGOTIATED  PROFIT  OF  THE  PROFESSIONAL
FIRM.  "ALLOWABLE  INDIRECT COSTS" OF A PROFESSIONAL FIRM ARE DEFINED AS
THOSE COSTS GENERALLY ASSOCIATED WITH OVERHEAD WHICH CANNOT  BE  SPECIF-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10454-01-9

A. 7056                             2

ICALLY  IDENTIFIED  WITH A SINGLE PROJECT OR CONTRACT AND ARE CONSIDERED
REASONABLE AND ALLOWABLE UNDER SPECIFIC STATE CONTRACT  OR  ALLOWABILITY
LIMITS.  SHOULD  THE  CORPORATION  BE UNABLE TO NEGOTIATE A SATISFACTORY
CONTRACT WITH THE PROFESSIONAL FIRM CONSIDERED TO BE THE MOST QUALIFIED,
AT  A  FEE  THE  CORPORATION DETERMINES TO BE FAIR AND REASONABLE TO THE
CORPORATION, NEGOTIATIONS WITH THAT PROFESSIONAL FIRM SHALL BE  FORMALLY
TERMINATED.   THE CORPORATION SHALL THEN UNDERTAKE NEGOTIATIONS WITH THE
SECOND MOST QUALIFIED PROFESSIONAL FIRM. FAILING ACCORD WITH THE  SECOND
MOST  QUALIFIED PROFESSIONAL FIRM, THE CORPORATION SHALL FORMALLY TERMI-
NATE NEGOTIATIONS. THE CORPORATION  SHALL  THEN  UNDERTAKE  NEGOTIATIONS
WITH  THE THIRD MOST QUALIFIED PROFESSIONAL FIRM. SHOULD THE CORPORATION
BE UNABLE TO NEGOTIATE A SATISFACTORY CONTRACT WITH ANY OF THE  SELECTED
PROFESSIONAL  FIRMS,  IT  SHALL  SELECT ADDITIONAL PROFESSIONAL FIRMS IN
ORDER OF THEIR COMPETENCE AND QUALIFICATIONS AND IT SHALL CONTINUE NEGO-
TIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL AN AGREEMENT IS REACHED.
  S 2. This act shall take effect immediately.

2009-A7056A - Details

Current Committee:: Senate Finance
Law Section:: Public Authorities Law
Laws Affected:: Amd §2879, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A6814
2013-2014: A7268
2015-2016: A5759
2017-2018: A5750

2009-A7056A - Summary

2009-A7056A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7056--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 19, 2009
                               ___________

Introduced  by  M.  of  A.  BENEDETTO  --  read once and referred to the
  Committee on Corporations, Authorities and  Commissions  --  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 benefits 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:

  Section 1. Subparagraph (iv) of paragraph  (b)  of  subdivision  3  of
section 2879 of the public authorities law, as amended by chapter 383 of
the laws of 1994, is amended to read as follows:
  (iv)  as used in this subparagraph, the term "professional firm" shall
be defined as any individual or sole proprietorship, partnership, corpo-
ration, association, or other legal entity permitted by law to  practice
the professions of architecture, engineering or surveying.
  The corporation shall not refuse to negotiate with a professional firm
solely  because  the  ratio  of the "allowable indirect costs" to direct
labor costs of the professional firm or the hourly  labor  rate  in  any
labor  category  of the professional firm exceeds a limitation generally
set by the corporation in the determination of the reasonableness of the
estimated cost of services to be rendered by the professional firm,  but
rather  the  corporation should also consider the reasonableness of cost
based on the total estimated cost of the  service  of  the  professional
firm  which  should  include,  among  other things, all the direct labor
costs of the professional firm for such  services  plus  all  "allowable
indirect  costs,"  other  direct  costs,  and  negotiated  profit of the
professional firm. "Allowable indirect costs" of a professional firm are
defined as those costs generally associated with overhead  which  cannot

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10454-03-9

A. 7056--A                          2

be  specifically  identified  with  a single project or contract and are
considered reasonable and allowable under  specific  state  contract  or
allowability  limits.    NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THIS
SECTION,  EVERY  CORPORATION SHALL NEGOTIATE A CONTRACT WITH THE HIGHEST
QUALIFIED  PROFESSIONAL  FIRM  FOR  ARCHITECTURAL   AND/OR   ENGINEERING
SERVICES   AND/OR  SURVEYING  SERVICES  AND/OR  LANDSCAPE  ARCHITECTURAL
SERVICES AT COMPENSATION WHICH THE CORPORATION DETERMINES IN WRITING  TO
BE FAIR AND REASONABLE TO SUCH CORPORATION. IN MAKING THIS DECISION, THE
CORPORATION  SHALL TAKE INTO ACCOUNT THE ESTIMATED VALUE OF THE SERVICES
TO BE RENDERED, INCLUDING THE COSTS, THE SCOPE, COMPLEXITY  AND  PROFES-
SIONAL  NATURE THEREOF.  SHOULD THE CORPORATION BE UNABLE TO NEGOTIATE A
SATISFACTORY CONTRACT WITH THE PROFESSIONAL FIRM CONSIDERED  TO  BE  THE
MOST  QUALIFIED,  AT  A  FEE  THE  CORPORATION DETERMINES TO BE FAIR AND
REASONABLE TO THE CORPORATION, NEGOTIATIONS WITH THAT PROFESSIONAL  FIRM
SHALL  BE  FORMALLY  TERMINATED.    THE CORPORATION SHALL THEN UNDERTAKE
NEGOTIATIONS WITH THE SECOND MOST QUALIFIED PROFESSIONAL  FIRM.  FAILING
ACCORD WITH THE SECOND MOST QUALIFIED PROFESSIONAL FIRM, THE CORPORATION
SHALL FORMALLY TERMINATE NEGOTIATIONS. THE CORPORATION SHALL THEN UNDER-
TAKE  NEGOTIATIONS  WITH  THE  THIRD  MOST  QUALIFIED PROFESSIONAL FIRM.
SHOULD THE CORPORATION BE UNABLE TO NEGOTIATE  A  SATISFACTORY  CONTRACT
WITH  ANY OF THE SELECTED PROFESSIONAL FIRMS, IT SHALL SELECT ADDITIONAL
PROFESSIONAL FIRMS IN ORDER OF THEIR COMPETENCE AND  QUALIFICATIONS  AND
IT  SHALL CONTINUE NEGOTIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL AN
AGREEMENT IS REACHED, PROVIDED, HOWEVER, THE  CORPORATION  MAY,  IN  ITS
DISCRETION,  ELECT  TO TERMINATE THE PROCUREMENT PROCESS FOR SUCH SOLIC-
ITATION AND NOT AWARD A PROCUREMENT CONTRACT TO ANY FIRM THAT  RESPONDED
TO  SUCH SOLICITATION, WHICH ELECTION SHALL NOT PROHIBIT THE CORPORATION
FROM ISSUING A NEW SOLICITATION FOR SUCH SERVICES.
  S 2. This act shall take effect immediately.

co-Sponsors

2009-A7056B (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Public Authorities Law
Laws Affected:: Amd §2879, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A6814
2013-2014: A7268
2015-2016: A5759
2017-2018: A5750

2009-A7056B (ACTIVE) - Summary

2009-A7056B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7056--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 19, 2009
                               ___________

Introduced  by  M.  of  A.  BENEDETTO  --  read once and referred to the
  Committee on Corporations, Authorities and  Commissions  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee -- reported and referred to the Committee on Rules
  -- Rules Committee discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to the Committee on Rules

AN  ACT  to  amend  the public authorities law, in relation to requiring
  public authorities and public benefits 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:

  Section 1. Subparagraph (iv) of paragraph  (b)  of  subdivision  3  of
section 2879 of the public authorities law, as amended by chapter 383 of
the laws of 1994, is amended to read as follows:
  (iv)  as used in this subparagraph, the term "professional firm" shall
be defined as any individual or sole proprietorship, partnership, corpo-
ration, association, or other legal entity permitted by law to  practice
the professions of architecture, engineering or surveying.
  IT  IS  THE POLICY OF NEW YORK STATE TO NEGOTIATE CONTRACTS FOR ARCHI-
TECTURAL AND/OR ENGINEERING SERVICES AND/OR SURVEYING  SERVICES  ON  THE
BASIS  OF  DEMONSTRATED  COMPETENCE  AND  QUALIFICATION  FOR THE TYPE OF
PROFESSIONAL SERVICES REQUIRED AND AT FAIR AND REASONABLE FEES.
  IN  THE  PROCUREMENT  OF  ARCHITECTURAL,  ENGINEERING  AND   SURVEYING
SERVICES,  THE CORPORATION SHALL ENCOURAGE PROFESSIONAL FIRMS ENGAGED IN
THE LAWFUL PRACTICE OF THE PROFESSION TO SUBMIT AN ANNUAL  STATEMENT  OF
QUALIFICATIONS  AND  PERFORMANCE DATA. THE CORPORATION FOR EACH PROPOSED
PROJECT SHALL EVALUATE CURRENT STATEMENTS OF QUALIFICATIONS AND PERFORM-
ANCE DATA ON FILE WITH THE CORPORATION.  IF DESIRED, THE CORPORATION MAY
CONDUCT DISCUSSIONS WITH THREE  OR  MORE  PROFESSIONAL  FIRMS  REGARDING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10454-04-9

A. 7056--B                          2

ANTICIPATED  DESIGN  CONCEPTS  AND  PROPOSED  METHODS OF APPROACH TO THE
ASSIGNMENT. THE CORPORATION SHALL SELECT, IN ORDER OF PREFERENCE,  BASED
UPON CRITERIA ESTABLISHED BY THE CORPORATION, NO LESS THAN THREE PROFES-
SIONAL  FIRMS  DEEMED  TO  BE  THE  MOST HIGHLY QUALIFIED TO PROVIDE THE
SERVICES REQUIRED.
  EVERY CORPORATION SHALL NEGOTIATE A CONTRACT WITH THE  HIGHEST  QUALI-
FIED  PROFESSIONAL  FIRM  FOR  ARCHITECTURAL AND/OR ENGINEERING SERVICES
AND/OR SURVEYING SERVICES AT COMPENSATION WHICH THE  CORPORATION  DETER-
MINES  IN  WRITING  TO  BE  FAIR  AND REASONABLE TO SUCH CORPORATION. IN
MAKING THIS DECISION, THE CORPORATION SHALL TAKE INTO ACCOUNT THE  ESTI-
MATED  VALUE  OF  THE  SERVICES TO BE RENDERED, INCLUDING THE COSTS, THE
SCOPE, COMPLEXITY AND PROFESSIONAL NATURE THEREOF.
  The corporation shall not refuse to negotiate with a professional firm
solely because the ratio of the "allowable  indirect  costs"  to  direct
labor  costs  of  the  professional firm or the hourly labor rate in any
labor category of the professional firm exceeds a  limitation  generally
set by the corporation in the determination of the reasonableness of the
estimated  cost of services to be rendered by the professional firm, but
rather the corporation should also consider the reasonableness  of  cost
based  on  the  total  estimated cost of the service of the professional
firm which should include, among other  things,  all  the  direct  labor
costs  of  the  professional  firm for such services plus all "allowable
indirect costs," other  direct  costs,  and  negotiated  profit  of  the
professional firm. "Allowable indirect costs" of a professional firm are
defined  as  those costs generally associated with overhead which cannot
be specifically identified with a single project  or  contract  and  are
considered  reasonable  and  allowable  under specific state contract or
allowability limits.  SHOULD THE CORPORATION BE UNABLE  TO  NEGOTIATE  A
SATISFACTORY  CONTRACT  WITH  THE PROFESSIONAL FIRM CONSIDERED TO BE THE
MOST QUALIFIED, AT A FEE THE  CORPORATION  DETERMINES  TO  BE  FAIR  AND
REASONABLE  TO THE CORPORATION, NEGOTIATIONS WITH THAT PROFESSIONAL FIRM
SHALL BE FORMALLY TERMINATED.   THE  CORPORATION  SHALL  THEN  UNDERTAKE
NEGOTIATIONS  WITH  THE SECOND MOST QUALIFIED PROFESSIONAL FIRM. FAILING
ACCORD WITH THE SECOND MOST QUALIFIED PROFESSIONAL FIRM, THE CORPORATION
SHALL FORMALLY TERMINATE NEGOTIATIONS. THE CORPORATION SHALL THEN UNDER-
TAKE NEGOTIATIONS WITH  THE  THIRD  MOST  QUALIFIED  PROFESSIONAL  FIRM.
SHOULD  THE  CORPORATION  BE UNABLE TO NEGOTIATE A SATISFACTORY CONTRACT
WITH ANY OF THE SELECTED PROFESSIONAL FIRMS, IT SHALL SELECT  ADDITIONAL
PROFESSIONAL  FIRMS  IN ORDER OF THEIR COMPETENCE AND QUALIFICATIONS AND
IT SHALL CONTINUE NEGOTIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL  AN
AGREEMENT  IS  REACHED.   THE PROVISIONS OF THIS SUBPARAGRAPH SHALL ONLY
APPLY TO ENGINEERING  AND/OR  ARCHITECTURAL  SERVICES  AND/OR  SURVEYING
SERVICES IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS.
  S 2. This act shall take effect immediately.

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