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

                                 7268--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               May 8, 2013
                               ___________

Introduced by M. of A. BENEDETTO, BRINDISI, TENNEY, MAGNARELLI, ROBERTS,
  McDONALD  -- Multi-Sponsored by -- M. of A. BARCLAY, CROUCH, WALTER --
  read once and referred to the Committee on  Corporations,  Authorities
  and  Commissions  --  recommitted  to  the  Committee on Corporations,
  Authorities and Commissions in accordance with Assembly Rule 3, sec. 2
  -- 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:

  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 IS AUTHORIZED TO 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 IS AUTHORIZED TO EVALUATE  CURRENT  STATEMENTS  OF
QUALIFICATIONS  AND  PERFORMANCE  DATA ON FILE WITH THE CORPORATION.  IF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00703-02-4
              

A. 7268--A                          2

DESIRED, THE CORPORATION MAY CONDUCT  DISCUSSIONS  WITH  THREE  OR  MORE
PROFESSIONAL  FIRMS  REGARDING  ANTICIPATED DESIGN CONCEPTS AND PROPOSED
METHODS OF APPROACH TO THE ASSIGNMENT. THE CORPORATION IS AUTHORIZED  TO
SELECT,  IN  ORDER OF PREFERENCE, BASED UPON CRITERIA ESTABLISHED BY THE
CORPORATION, NO LESS THAN THREE PROFESSIONAL FIRMS DEEMED TO BE THE MOST
HIGHLY QUALIFIED TO PROVIDE THE SERVICES REQUIRED.
  EVERY CORPORATION IS AUTHORIZED TO NEGOTIATE A CONTRACT WITH THE HIGH-
EST QUALIFIED PROFESSIONAL FIRM  FOR  ARCHITECTURAL  AND/OR  ENGINEERING
SERVICES AND/OR SURVEYING SERVICES AT COMPENSATION WHICH THE CORPORATION
DETERMINES  IN WRITING TO BE FAIR AND REASONABLE TO SUCH CORPORATION. IN
MAKING THIS DECISION, THE CORPORATION IS AUTHORIZED TO TAKE INTO ACCOUNT
THE ESTIMATED 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 CHOOSE TO ENGAGE IN A QUAL-
IFICATION BASED PROCUREMENT AND 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.
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  AND  SHALL NOT APPLY TO THE METROPOLITAN
TRANSPORTATION AUTHORITY, THE NEW YORK CITY  TRANSIT  AUTHORITY  OR  THE
TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY OR TO ANY OF THEIR SUBSIDIARIES.
  S 2. This act shall take effect immediately.