NY State Senate Bill 2025-S6677

Senate Bill S6677

2025-2026 Legislative Session

Provides for the establishment of a method for determining the lowest responsible bidder when negotiating state contracts

download bill text pdf

Current Bill Status - In Senate Committee Procurement And Contracts 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 19, 2025	referred to procurement and contracts

2025-S6677 (ACTIVE) - Details

See Assembly Version of this Bill:: A995
Current Committee:: Senate Procurement And Contracts
Law Section:: State Finance Law
Laws Affected:: Add Art 9 §134, §136-e, St Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3982
2011-2012: A2729
2013-2014: A2158
2015-2016: A2276
2017-2018: A2235
2019-2020: A2654
2021-2022: A6028
2023-2024: A2511

2025-S6677 (ACTIVE) - Summary

Provides for the establishment of a method for determining the lowest responsible bidder when negotiating state contracts that would incorporate quantifiable fiscal benefits.

2025-S6677 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6677

SPONSOR: OBERACKER
 
TITLE OF BILL:

An act to amend the state finance law, in relation to establishing a
method for determining the lowest responsible bidder when negotiating
state contracts

 
PURPOSE:

Provides for the establishment of a method for determining the lowest
responsible bidder when negotiating state contracts

 
SUMMARY OF PROVISIONS:

Section 1. Article 9 of the state finance law is amended by adding a new
section 134 the Declaration Policy.

Section 2 the finance law is amended by adding a new section 136-e

Section 3 effective date

 
EXISTING LAW:

Click here

 
JUSTIFICATION:

This legislation would.declare that the policy of the state, when nego-
tiating contracts for public works and public contracts to which it is a
party, is to assure the prudent and economical use of public moneys.
This legislation further declares that the state recognizes that the
lowest responsible bid for contracts with the state should incorporate
quantifiable fiscal benefits to the state and that these quantifiable
fiscal benefits to the state should be subtracted from the actual bid
amount to determine the lowest responsible bidder. It is the opinion of
the sponsor that it is our fiduciary responsibility to the taxpayers of
New York State to determine the true net cost.

By requiring the comptroller to establish a method to determine the
lowest responsible bid by incorporating consideration of ancillary bene-
fits to the state when awarding contracts, an assessment of benefits to
the state would be included to determine the lowest responsible bidder.

In Kirkwood, New York, a contractor lost a bid for manufacturing high-
pressure laminate panels for the state to a Michigan manufacturer. The
bid was lost by 2 percent ($40,000). However, not considered were the
facts that the New York manufacturer would have bought one million
dollars' worth of laminate from a Syracuse distributor, four hundred
thousand dollars of particle board would have been purchased in New
York, thirty-four thousand dollars of glue would have been purchased
from a Rochester distributor, forty-two thousand dollars in trucking
costs would have gone to a Conklin, a New York firm, and four new jobs
would have been created at the unsuccessful bidder's manufacturing
facility. Had these and other ancillary benefits to the state been
considered, the lowest responsible bid would have been more accurately
assessed and, in keeping with the declared policy of the state, the
prudent and economical use of public moneys would have been assured.
 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

This legislation would result in savings to the state, increased revenue
to the state, and the creation of tax revenue producing jobs.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S6677 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6677
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 19, 2025
                                ___________
 
 Introduced by Sen. OBERACKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and Contracts
 
 AN  ACT  to  amend  the state finance law, in relation to establishing a
   method for determining the lowest responsible bidder when  negotiating
   state contracts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 9 of the state finance law is amended by  adding  a
 new section 134 to read as follows:
   § 134. DECLARATION OF POLICY. 1. IT IS HEREBY DECLARED TO BE THE POLI-
 CY OF THIS STATE THAT THIS ARTICLE SHALL BE CONSTRUED IN THE NEGOTIATION
 OF CONTRACTS FOR PUBLIC WORKS AND PUBLIC PURCHASES TO WHICH THE STATE IS
 A  PARTY SO AS TO ASSURE THE PRUDENT AND ECONOMICAL USE OF PUBLIC MONEYS
 FOR THE BENEFIT OF ALL THE INHABITANTS OF THE STATE  AND  TO  FACILITATE
 THE  ACQUISITION OF FACILITIES AND COMMODITIES OF MAXIMUM QUALITY AT THE
 LOWEST POSSIBLE COST. THE STATE ALSO RECOGNIZES THAT THE LOWEST  RESPON-
 SIBLE  BID  FOR PUBLIC CONTRACTS MAY NOT SIMPLY BE A MONETARY AMOUNT BUT
 SHOULD ALSO INCORPORATE QUANTIFIABLE FISCAL BENEFITS TO  THE  STATE  AND
 THAT QUANTIFIABLE FISCAL BENEFITS TO THE STATE SHOULD BE SUBTRACTED FROM
 THE ACTUAL BID AMOUNT TO DETERMINE THE LOWEST RESPONSIBLE BIDDER.
   2.  THE COMPTROLLER SHALL ESTABLISH, IN CONSULTATION WITH THE HEADS OF
 STATE AGENCIES, A METHOD FOR DETERMINING THE LOWEST  RESPONSIBLE  BIDDER
 WHEN  NEGOTIATING  STATE  CONTRACTS  THAT WOULD INCORPORATE QUANTIFIABLE
 FISCAL BENEFITS INCLUDING, BUT NOT BE LIMITED TO, CONSIDERATION OF WHERE
 SUB-CONTRACTORS USED BY CONTRACTORS TO  FULFILL  A  STATE  CONTRACT  ARE
 LOCATED,  HOW  MANY  JOBS  IN  THE STATE, IF ANY, WILL BE CREATED BY THE
 AWARDING OF SUCH A CONTRACT, AND THE ESTIMATED TAX REVENUE AND ANCILLARY
 ECONOMIC ACTIVITY THAT WOULD BE  GENERATED  IN  THE  STATE  THROUGH  THE
 AWARDING  OF SUCH CONTRACTS AND SUBSEQUENT SUBCONTRACTS. THE COMPTROLLER
 SHALL PROMULGATE RULES AND REGULATIONS TO ENSURE THE INCLUSION OF  THESE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02658-01-5
 S. 6677                             2

 
 CONSIDERATIONS  IN  DETERMINING  THE LOWEST RESPONSIBLE BIDDER FOR STATE
 CONTRACTS.
   § 2. The state finance law is amended by adding a new section 136-e to
 read as follows:
   §  136-E.  IN-STATE  CONTRACTOR  PREFERENCE. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW TO THE CONTRARY, ANY CONTRACT OR CONTRACTS MADE BY  THE
 STATE WHICH REQUIRES THE SUBMISSION OF A BID SHALL, WHEN DETERMINING THE
 LOW  BID,  REDUCE  ANY  BID  SUBMITTED BY AN IN-STATE CONTRACTOR BY FIVE
 PERCENT.  FOR THE PURPOSES OF THIS  SECTION,  AN  "IN-STATE  CONTRACTOR"
 SHALL BE A CONTRACTOR WHICH:
   1. IS LOCATED WITHIN THE STATE;
   2. HIRES A MAJORITY OF EMPLOYEES WHO ARE RESIDENTS OF THE STATE;
   3.  HIRES  SUBCONTRACTORS  WHO  ARE LOCATED WITHIN THE STATE AND WHOSE
 EMPLOYEES ARE RESIDENTS OF THE STATE; AND
   4. CREATES TAX REVENUE AND ANCILLARY ECONOMIC ACTIVITY FOR THE STATE.
   § 3. This act shall take effect immediately.

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