NY State Senate Bill 2015-S5887

Senate Bill S5887

2015-2016 Legislative Session

Relates to public works undertaken pursuant to project labor agreements, use of the alternative delivery method known as design-build contracts

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Archive: Last Bill Status - In Senate Committee Rules 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
Jun 17, 2016	committed to rules
Jun 06, 2016	advanced to third reading
Jun 02, 2016	2nd report cal.
Jun 01, 2016	1st report cal.1351
Jan 06, 2016	referred to cities
Jun 10, 2015	referred to rules

Votes

- Jun 1, 2016 - Committee Vote
  S5887
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Committee Vote: Jun 1, 2016
      
      aye (6)
      
      Akshar
      
      Felder
      
      Funke
      
      Ortt
      
      Persaud
      
      Savino
      
      aye wr (1)
      
      Peralta

co-Sponsors

2015-S5887 (ACTIVE) - Details

See Assembly Version of this Bill:: A7590
Current Committee:: Senate Rules
Law Section:: Public Works

2015-S5887 (ACTIVE) - Summary

Relates to public works undertaken pursuant to project labor agreements and the use of the alternative delivery method known as design-build contracts.

2015-S5887 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5887

TITLE OF BILL:  An act to authorize, for certain public works
undertaken pursuant to project labor agreements, use of the
alternative delivery method known as design-build contracts; and
providing for the repeal of such provisions upon expiration thereof

SUMMARY OF PROVISIONS:

This bill would, for any public work undertaken pursuant to a project
labor agreement in accordance with section 222 of the labor law,
authorize the New York City Department of Design and Construction, New
York City Department of Parks and Recreation, New York City Department
of Transportation, New York City Health and Hospitals Corporation, New
York City Housing Authority, and New York City School Construction
Authority to use the alternative delivery method known as design-build
contracting, notwithstanding general, special or local laws, rules or
regulations to the contrary. Such an authorized entity would select
the proposal providing the best value, based upon a request for
proposals specifying certain criteria to be used in evaluation. An
entity awarding a design-build contract to a contractor offering the
best value would further be authorized (but not required) to use a
cost-plus not to exceed guaranteed maximum price contract or lump sum
contract. Contracts would be required to include a clause requiring
the selected design-build contractor to obligate every tier of
contractor on the project to comply with the project labor agreement,

and project labor agreement compliance monitoring and enforcement
provisions. Contracts would be subject to applicable federal, state
and local requirements for disadvantaged business enterprises and
minority and women-owned business enterprises. The bill would expire
five years after its effective date, though public works for which
requests for proposals have been issued could continue under the act
beyond the expiration date.

REASONS FOR SUPPORT:

Design-build contracting is a method of project delivery in which the
owner executes a single contract with one entity to provide design,
engineering and construction services. This method minimizes project
risk for the owner, increases the accountability of contractors and
streamlines the delivery schedule by overlapping the design and
construction phases of a project.

Design-build contracting saves time and money by eliminating time in
procuring design services separately from construction services, and
by making a single entity responsible for a project, reducing the
possibility of contract claims related to design errors or omissions.
Additionally, design-build contracting introduces the possibility of
innovation during project performance by incentivizing the project
provider to think of creative ways to reduce project schedule and
delivery methods.

Today, more and more government entities, including the State of New
York, have embraced design-build contracting as a preferred method of
project delivery. The State was authorized to utilize the design-build
method of project delivery from 2011 to 2014, and most notably
employed design-build: for the Tappan Zee Bridge replacement project


to achieve an estimated taxpayer savings of $1 billion.  Additionally,
the Federal Highway Administration, which funds a significant portion
of New York City's bridge and road infrastructure capital programs,
has indicated that design-build is its preferred method of
procurement.

Where the City's Department of Design and Construction, Department of
Parks and Recreation, and Department of Transportation and certain
other public entities enter into project labor agreements in
accordance with section 222 of the Labor Law, this bill would provide
the opportunity to use the valuable procurement alternative of
design-build contracting in order to provide the public with public
works projects of superior quality and on a faster timetable. The City
has already identified projects for which estimated savings in the
tens of millions of dollars could be achieved.

Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

2015-S5887 (ACTIVE) - Bill Text download pdf

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

                                  5887

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 10, 2015
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to authorize, for certain public  works  undertaken  pursuant  to
  project labor agreements, use of the alternative delivery method known
  as  design-build  contracts;  and  providing  for  the  repeal of such
  provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This act shall be known and may be cited as the "New York
city public works investment act".
  S 2. For the purposes of this act:
  (a) "Authorized entity" shall mean the New  York  city  department  of
design  and  construction, the New York city department of environmental
protection, the New York city department of parks  and  recreation,  the
New York city department of transportation, the New York city health and
hospitals  corporation,  the New York city housing authority and the New
York city school construction authority.
  (b) "Best value" shall mean  the  basis  for  awarding  contracts  for
services  to  a  proposer  that  optimizes quality, cost and efficiency,
price and performance criteria, which may include, but  is  not  limited
to:
  (1) The quality of the proposer's performance on previous projects;
  (2) The timeliness of the proposer's performance on previous projects;
  (3) The level of customer satisfaction with the proposer's performance
on previous projects;
  (4)  The  proposer's  record of performing previous projects on budget
and ability to minimize cost overruns;
  (5) The proposer's ability to limit change orders;
  (6) The proposer's ability to prepare appropriate project plans;
  (7) The proposer's technical capacities;
  (8) The individual qualifications of the proposer's key personnel;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11065-02-5

S. 5887                             2

  (9) The proposer's ability to assess and manage risk and minimize risk
impact;
  (10) The proposer's financial capability;
  (11) The proposer's past record of compliance with article 15-A of the
executive  law  or  any  other  applicable  laws concerning minority and
women-owned business enterprise participation;
  (12) The proposer's past record of compliance with all other  federal,
state  and  local laws, rules, licensing requirements, where applicable,
and executive orders, including but not limited to compliance  with  the
labor law and other applicable labor and prevailing wage laws; and
  (13)  The  proposer's  ability to comply with applicable requirements,
including the provisions of articles 145, 147 and 148 of  the  education
law.
  Such  basis  shall reflect, wherever possible, objective and quantifi-
able analysis.
  (c) "Cost plus" shall mean compensating a contractor for the  cost  to
complete a contract by reimbursing actual costs for labor, equipment and
materials plus an additional amount for overhead and profit.
  (d)  "Design-build  contract" shall mean a contract for the design and
construction of a public work with a single entity, which may be a  team
comprised of separate entities.
  (e)  "Project  labor  agreement"  shall  have the meaning set forth in
subdivision 1 of section 222 of the labor law. A project labor agreement
shall require participation in apprentice training programs  in  accord-
ance with paragraph (e) of subdivision 2 of such section.
  S  3.  Any contract for a public work undertaken pursuant to a project
labor agreement in accordance with section 222 of the labor law may be a
design-build contract in accordance with this act.
  S 4. Notwithstanding any general, special or local law, rule or  regu-
lation  to the contrary, including but not limited to article 5-A of the
general municipal law, section 8 of the New York city health and  hospi-
tals  corporation  act, sections 1734 and 1735 of the public authorities
law and article 8 of the public housing law, and in conformity with  the
requirements  of  this act, for any public work undertaken pursuant to a
project labor agreement in accordance with section 222 of the labor law,
an authorized entity charged with awarding a contract  for  public  work
may  use  the  alternative  delivery  method referred to as design-build
contracts.
  (a) A contractor selected by such authorized entity to  enter  into  a
design-build  contract  shall  be  selected  through the submission of a
proposal which provides the best value.  Such  authorized  entity  shall
issue  a  request for proposals which shall set forth the scope of work,
and other requirements, as determined  by  the  authorized  entity.  The
request  for proposals shall specify the criteria to be used to evaluate
the responses and the relative weight of each  of  such  criteria.  Such
criteria   shall  include  the  proposal's  cost,  the  quality  of  the
proposal's solution, the qualifications and experience of the  proposer,
and  other  factors deemed pertinent by the authorized entity, which may
include, but shall not be limited to, the proposal's manner and schedule
of project implementation, the proposer's ability to complete  the  work
in  a timely and satisfactory manner, maintenance costs of the completed
public work, maintenance of traffic approach, and community impact.  Any
contract  awarded  pursuant to this act shall be awarded to a responsive
and responsible entity that submits the proposal,  which,  in  consider-
ation of these and other specified criteria deemed pertinent, offers the
best value, as determined by the authorized entity. Nothing herein shall

S. 5887                             3

be  construed  to  prohibit the authorized entity from negotiating final
contract terms and conditions including cost.
  (b)  An  authorized  entity  awarding  a  design-build  contract  to a
contractor offering the best value may but shall not be required to  use
the following types of contracts:
  (1)  A  cost-plus  not  to  exceed  guaranteed  maximum  price form of
contract in which the authorized entity shall be entitled to monitor and
audit all costs. In establishing the schedule and process for  determin-
ing  a  guaranteed  maximum  price,  the contract between the authorized
entity and the contractor shall:
  (i) Describe the scope of the work and the  cost  of  performing  such
work,
  (ii) Include a detailed line item cost breakdown,
  (iii)  Include a list of all drawings, specifications and other infor-
mation on which the guaranteed maximum price is based,
  (iv) Include the dates of substantial and final  completion  on  which
the guaranteed maximum price is based, and
  (v) Include a schedule of unit prices; or
  (2) A lump sum contract in which the contractor agrees to accept a set
dollar  amount  for  a  contract  which  comprises  a single bid without
providing a cost breakdown for all costs such as for  equipment,  labor,
materials,  as well as such contractor's profit for completing all items
of work comprising the public work.
  S 5. Any contract entered into pursuant to this act  shall  include  a
clause  requiring  that  any professional services regulated by articles
145, 147 and 148 of the education law shall be performed and stamped and
sealed, where appropriate, by a professional licensed in accordance with
such articles.
  S 6. Construction with respect to each contract  entered  into  by  an
authorized  entity  pursuant to this act shall be deemed a "public work"
to be performed in accordance with the provisions of article  8  of  the
labor  law,  as well as subject to sections 200, 240, 241 and 242 of the
labor law and enforcement of prevailing wage  requirements  pursuant  to
applicable  law  or, for projects or public works receiving federal aid,
applicable  federal  requirements  for  prevailing  wage.  Any  contract
entered  into  pursuant to this act shall include a clause requiring the
selected design builder to obligate every tier of contractor working  on
the  project  to  comply  with the project labor agreement referenced in
section three of this act, and shall  include  project  labor  agreement
compliance  monitoring  and  enforcement  provisions consistent with the
applicable project labor agreement.
  S 7. Each contract entered into by an authorized  entity  pursuant  to
this  act  shall  comply  with  the  objectives and goals with regard to
minority and women-owned business enterprises pursuant to,  as  applica-
ble,  section  6-129 of the administrative code of the city of New York,
subdivision 6 of section 8 of the New York  city  health  and  hospitals
corporation  act and section 1743 of the public authorities law, or, for
projects or public  works  receiving  federal  aid,  applicable  federal
requirements  for  disadvantaged  business  enterprises  or minority and
women-owned business enterprises.
  S 8. Public works undertaken by an authorized entity pursuant to  this
act  shall  be  subject to the requirements of article 8 of the environ-
mental conservation law, and, where applicable, the requirements of  the
national environmental policy act.

S. 5887                             4

  S  9.  The submission of a proposal or responses or the execution of a
design-build contract pursuant to this act shall not be construed to  be
a violation of section 6512 of the education law.
  S  10.  Nothing  contained  in this act shall limit the right or obli-
gation of any authorized entity to comply with  the  provisions  of  any
existing contract or to award contracts as otherwise provided by law.
  S  11.  This act shall take effect immediately and shall expire and be
deemed repealed 5 years after such date,  provided  that,  public  works
with requests for proposals issued prior to such repeal shall be permit-
ted to continue under this act notwithstanding such repeal.

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Senate Bill S5887

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Sponsored By

Andrew J. Lanza

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

Leroy Comrie

Martin J. Golden

Diane J. Savino

Daniel L. Squadron

2015-S5887 (ACTIVE) - Details

2015-S5887 (ACTIVE) - Summary

2015-S5887 (ACTIVE) - Sponsor Memo

2015-S5887 (ACTIVE) - Bill Text download pdf

Comments