Relates to participation by state agencies in a system used by the comptroller to compile vendor responsibility information; defines information technology for procurement purposes; clarifies the use of best and final offers for invitations for bids and requests for proposals for goods, services and technology; clarifies the use of contracts let by another governmental agency; clarifies the valuation of non-cash contracts by the state comptroller.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10688 Revised 10/19/16
SPONSOR: Rules (Peoples-Stoke TITLE OF BILL:
An act to amend the state finance law, in relation to participation by
state agencies in a system used by the comptroller to compile vendor
responsibility information; defining information technology for procure-
ment purposes; clarifying the use of best and final offers for invita-
tions for bids and requests for proposals for goods, services and tech-
nology; clarifying the use of contracts let by another governmental
agency; and clarifying the valuation of non-cash contracts by the state
comptroller
PURPOSE:
The purpose of this proposed legislation is to increase the transparen-
cy, accountability, efficiency and flexibility of the procurement proc-
ess.
SUMMARY OF PROVISIONS:
Section 1 of this proposal amends the State Finance Law by adding a new
Section 163-c requiring use by state agencies of a system maintained by
the State Comptroller to compile vendor responsibility information.
Section 2 of this proposal amends Subdivisions 7 and 10 of Section 160
of the State Finance Law in relation to defining information technology
for procurement purposes.
Section 3 of this proposal make conforming changes to Paragraphs g and i
of Subdivision 2 of Section 161 of the State Finance Law with respect to
the definition of information technology.
Section 4 of this proposal make conforming changes to Paragraph k of
Subdivision 1 and subdivisions 6 and 7 of Section 163 of the State
Finance Law with respect to the definition of information technology and
to make certain provisions relating to methods of procurement permanent.
Section 5 of this proposal amends Subdivision 9 of Section 163 of the
State Finance Law by adding a new Paragraph c-1 relating to best and
final offer.
Section 6 of this proposal amends Paragraph e of Subdivision 10 of
Section 163 of the State Finance Law clarifying the use of a contract
let by another governmental entity.
Section 7 of this proposal amends Subdivision 3 of Section 112 of the
State Finance Law provides that for contracts where consideration cannot
be determined in terms of monetary value, it shall be valued in terms of
intrinsic value.
Section 8 provides for an immediate effective date and also provides
that section one of of the bill shall take effect on the one hundred
eightieth day after it shall have become a law, that the provisions of
sections four, five and six of this act shall apply to any procurement
initiated on or after such sections shall have become a law; provided,
further, however, that the amendments to section 163 of the state
finance law made by sections four, five, and six of this act shall not
affect the repeal of such section as provided in subdivision 5 of
section 362 of chapter 83 of the laws of 1995, as amended, and shall be
deemed repealed therewith.
PRIOR LEGISLATIVE HISTORY:
New Bill
JUSTIFICATION:
Vendor Responsibility: To fully standardize the vendor responsibility
review and streamline the contract process, and enable a 24-7, online
access for vendors to update information easily as information changes.
Pursuant to the State Comptroller's responsibility under Section 112 of
the State Finance Law to review and approve State contracts, which may
include a vendor responsibility review performed by the state agency and
the State Comptroller, the State Comptroller finds that mandatory use of
the on-line system for filing necessary vendor responsibility informa-
tion will facilitate an efficient review of a vendor's responsibility
thereby streamlining the procurement process for vendors and contracting
agencies.
Agencies not on the system require vendors to update in paper with every
procurement.
59 agencies use the system now, with more than 11,600 vendors already in
the system.
Change references to "technology" in article 11 to "information technol-
ogy": To clarify the definition of technology, to ensure the definition
meets current practice, and ensure future developments in information
technology are anticipated. This amendment would also clarify that inci-
dental technology content is not intended to drive a major procurement
that is not directly information technology related. Finally, this
amendment eliminates stale dates in the law thereby making certain
provisions relating to methods of procurement permanent.
Competitive Negotiation with Best and Final Offer: This amendment
expands available procurement options to include competitive negotiation
with multiple vendors to obtain the best result for taxpayers. The State
Comptroller anticipates this change would be useful in highly complex
procurements where approaches to meeting the requirements are not pre-
defined, to encourage innovative solutions amidst changing industry
capabilities, or where there may be opportunities for the state to miti-
gate risk or expense through non-material tradeoffs.
Where the basis of award is best value and after completing an initial
evaluation and scoring, a state agency may choose to make an award at
that time based on best value. Or, if the agency believes a better price
or outcome can be achieved, competitive negotiations can be conducted
with vendors that fall in a competitive range and could potentially be
selected based on the final outcome.
Clarifying use of Best and Final Offer: There is a lack of clarity among
agencies as to when Best and Final Offers can be utilized to achieve
best value for the state; this is intended to help clarify the require-
ments for use of best and final offers.
Clarifying Use of "Piggyback" Contracts: This amendment is intended to
ensure that agencies using the contracts of other entities (local,
state, or federal) comply with the intent of the original contract as
well as the mechanism for vendor selection in the case of contracts with
multiple award options.
Clarify Valuation of Non-Cash Contracts: This amendment clarifies that
for contracts with little or no cash actual cash consideration, the
intrinsic value of the contract will be used to determine the threshold.
The State Comptroller urges the passage of this proposed legislation.
FISCAL IMPLICATIONS FOR STATE:
None. However, these proposals will help streamline procurements result-
ing in more effective and efficient procurements at reduced costs.
EFFECTIVE DATE:
Provides for an immediate effective date, provides that certain
provisions take effect on the 180th day and states that certain
provisions shall only apply to any procurement initiated on or after
such date; and further provides that the amendments to Section 163 of
the state finance law shall not affect the repeal of such Section and
shall be deemed repealed therewith.
