S T A T E   O F   N E W   Y O R K
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                                 6639--A
    Cal. No. 607

                            I N  S E N A T E

                            February 21, 2014
                               ___________

Introduced  by  Sens.  DeFRANCISCO,  MAZIARZ,  VALESKY -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Corporations,  Authorities  and Commissions -- reported favorably from
  said committee, ordered to first and second report, ordered to a third
  reading, amended and ordered reprinted, retaining  its  place  in  the
  order of third reading

AN  ACT  to amend the public authorities law, in relation to authorizing
  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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD00703-04-4

S. 6639--A                          2

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.