S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5520
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2025
                                ___________
 
 Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
   tee on Corporations, Authorities and Commissions
 
 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,  engineering,  geological,
   landscape  architectural  or surveying 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 SERVICES AND/OR ENGINEERING SERVICES AND/OR GEOLOGICAL SERVICES
 AND/OR LANDSCAPE ARCHITECTURAL 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, GEOLOGICAL, LAND-
 SCAPE ARCHITECTURAL AND SURVEYING SERVICES, THE CORPORATION IS  REQUIRED
 TO  ENCOURAGE  PROFESSIONAL  FIRMS ENGAGED IN THE LAWFUL PRACTICE OF THE
 PROFESSION TO SUBMIT AN ANNUAL STATEMENT OF QUALIFICATIONS AND  PERFORM-
 ANCE  DATA.  THE  CORPORATION  FOR  EACH PROPOSED PROJECT IS REQUIRED 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06047-01-5
              

 A. 5520                             2
 
 CORPORATION IS REQUIRED 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 REQUIRED TO NEGOTIATE A CONTRACT WITH THE HIGHEST
 QUALIFIED  PROFESSIONAL FIRM FOR ARCHITECTURAL SERVICES AND/OR ENGINEER-
 ING SERVICES AND/OR GEOLOGICAL SERVICES AND/OR  LANDSCAPE  ARCHITECTURAL
 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 REQUIRED 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
 SERVICES AND/OR ARCHITECTURAL SERVICES AND/OR GEOLOGICAL SERVICES AND/OR
 LANDSCAPE  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.
   § 2. This act shall take effect immediately.