BILL NUMBER: S6658

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to modernizing
the metropolitan transportation authority's small business mentoring
program

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will increase the effective threshold for OSC review of MTA
discretionary awards to MWBEs, SDVOBs and small businesses from $1
million to $1.5 million.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends subdivision 15 of section 1209 of the
public authorities' law to increase the threshold for Comptroller review
from $1 million to $1.5 million for MTA contracts.

Section 2 of the bill amends subdivision 10, section 1265-a of the
              

public authorities law to increase the threshold for Comptroller review
from $1 million to $1.5 million for MTA contracts.

Section 3 provides an immediate effective date.

 
JUSTIFICATION:

Last year, the legislature increased the existing statutory threshold in
section 1265-a(2)(b) of the PAL from $1 million $1.5 million. This
allows MTA to award discretionary contracts to MWBEs, SDVOBs and small
businesses up to $1.5 million using an informal, streamlined competitive
process. Only MWBEs, SDVOBs or small businesses are allowed to compete
for discretionary awards. However, under current law (section 2879-a of
the PAL) the Comptroller (OSC) may review any contract over $1 million
that is not publicly advertised and open to any firm to submit bids.
This makes discretionary contracts between $1.0 and $1.5 million subject
to review by OSC prior to award. OSC review adds time and considerable
administrative effort to the process of awarding discretionary
contracts, which discourages their use. Therefore, amending sections
1265-a (10) and 1209(15) of the Public Authorities Law, which govern how
section 2879-a applies to MTA contracts, to increase the threshold for
Comptroller review from $1 million to $1.5 million for MTA contracts.
The proposed threshold increase is justified by inflation. The $1
million threshold in section 2879-a was set in 2011. Since that time,
the Consumer Price Index has increased by 35k. One year o f continued
inflation at current rates will make the $1 million in 2011 dollars
approximately equivalent to $1.5 million today.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.