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A09689 Text:

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

                                         9689

                                 I N  A S S E M B L Y

                                     May 15, 2014
                                      ___________

       Introduced  by  M.  of  A. ENGLEBRIGHT -- (at request of the State Comp-
         troller) -- read once and referred to the  Committee  on  Governmental
         Operations

       AN  ACT  to  amend  the  state  finance  law,  in relation to reports on
         centralized contracts and authorizing alternative procurement methods

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

    1    Section  1. Paragraph (a) of subdivision 2 of section 112 of the state
    2  finance law, as amended by section 18 of part L of  chapter  55  of  the
    3  laws of 2012, is amended to read as follows:
    4    (a)  Before  any contract made for or by any state agency, department,
    5  board, officer, commission, or institution, except the office of general
    6  services, shall be executed or become effective, whenever such  contract
    7  exceeds  fifty  thousand  dollars in amount and before any contract made
    8  for or by the office of general services shall  be  executed  or  become
    9  effective,  whenever  such contract exceeds eighty-five thousand dollars
   10  in amount, it shall first be approved by the comptroller  and  filed  in
   11  his  or  her  office,  with  the exception of contracts established as a
   12  centralized  contract  through  the  office  of  general  services  [and
   13  purchase  orders  or  other  procurement  transactions issued under such
   14  centralized contracts] THAT WERE NOT AWARDED AS THE RESULT OF AN  ALTER-
   15  NATIVE  PROCUREMENT. The comptroller shall make a final written determi-
   16  nation with respect to approval of such contract within ninety  days  of
   17  the  submission  of  such contract to his or her office unless the comp-
   18  troller shall notify, in writing, the state agency,  department,  board,
   19  officer,  commission,  or  institution,  prior  to the expiration of the
   20  ninety day period, and for good cause, of the need for an  extension  of
   21  not  more than fifteen days, or a reasonable period of time agreed to by
   22  such state agency, department, board, officer, commission,  or  institu-
   23  tion and provided, further, that such written determination or extension
   24  shall  be made part of the procurement record pursuant to paragraph f of
   25  subdivision one of section one hundred sixty-three of this chapter.
   26    S 2. Section 163 of the state finance law is amended by adding  a  new
   27  subdivision 15 to read as follows:

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14058-02-4
       A. 9689                             2

    1    15.  ALTERNATIVE  PROCUREMENT METHODS.   A. WHEN THE COMMISSIONER OR A
    2  STATE AGENCY DETERMINES THAT IT IS IN THE BEST INTEREST OF THE STATE  TO
    3  DEVELOP AN ALTERNATIVE PROCUREMENT METHOD NOT AUTHORIZED BY THIS ARTICLE
    4  FOR  GOODS,  SERVICES OR TECHNOLOGY, THE COMMISSIONER OR STATE AGENCY IS
    5  HEREBY AUTHORIZED TO DEVELOP AND USE SUCH METHOD FOR A SPECIFIC CONTRACT
    6  AWARD.  SUCH  DETERMINATION  SHALL  BE MADE IN WRITING AND SHALL INCLUDE
    7  DOCUMENTATION FOR THE PROCUREMENT RECORD THAT SUCH ALTERNATIVE  PROCURE-
    8  MENT METHOD: (I) WOULD SERVE THE INTEREST OF THE STATE BETTER THAN OTHER
    9  METHODS CURRENTLY AVAILABLE UNDER THIS SECTION; (II) CAN BE APPLIED ON A
   10  COMPETITIVE, FAIR AND EQUITABLE BASIS; AND (III) CONTAINS AN APPROPRIATE
   11  EVALUATION  METHODOLOGY  THAT CONSIDERS BOTH COST AND QUALITATIVE EVALU-
   12  ATION FACTORS. SUCH ALTERNATIVE PROCUREMENT METHOD SHALL BE  SUBJECT  TO
   13  ALL  OTHER  APPLICABLE PROVISIONS OF THIS SECTION. THE COMMISSIONER OR A
   14  STATE AGENCY MAY NOT UNDERTAKE AN ALTERNATIVE PROCUREMENT  METHOD  UNTIL
   15  THE COMPTROLLER HAS DETERMINED THAT THE PROPOSED ALTERNATIVE PROCUREMENT
   16  METHOD IS IN THE BEST INTEREST OF THE STATE; CAN BE APPLIED ON A COMPET-
   17  ITIVE,  FAIR AND EQUITABLE BASIS; AND UTILIZES AN APPROPRIATE EVALUATION
   18  METHODOLOGY THAT CONSIDERS BOTH COST AND QUALITATIVE EVALUATION FACTORS.
   19    B. WHEN USING AN ALTERNATIVE PROCUREMENT  METHOD  AUTHORIZED  BY  THIS
   20  SUBDIVISION,  THE  COMMISSIONER OR AGENCY SHALL INCLUDE IN ITS SOLICITA-
   21  TION DOCUMENT A DETAILED DESCRIPTION OF THE PROPOSED METHOD OF AWARD. IN
   22  ADVANCE OF THE INITIAL RECEIPT OF  OFFERS,  THE  COMMISSIONER  OR  STATE
   23  AGENCY SHALL DETERMINE AND DOCUMENT IN THE PROCUREMENT RECORD THE EVALU-
   24  ATION  CRITERIA  AND  PROCESS  TO  BE  USED  IN THE DETERMINATION OF THE
   25  SPECIFIC CONTRACT AWARD AND THE PROCESS  BY  WHICH  THE  EVALUATION  AND
   26  SELECTION  SHALL BE CONDUCTED. IN ADDITION TO THE REQUIREMENTS SET FORTH
   27  IN PARAGRAPH G OF SUBDIVISION NINE  OF  THIS  SECTION,  THE  PROCUREMENT
   28  RECORD  SHALL  DOCUMENT  THE  BASIS UPON WHICH THE AGENCY HAS DETERMINED
   29  THAT POTENTIAL VENDORS WILL BE ABLE TO RESPOND WITH VIABLE BIDS TO  SUCH
   30  ALTERNATIVE PROCUREMENT.
   31    C.  NOTWITHSTANDING ANY PROVISION OF SUBDIVISION FIVE OF SECTION THREE
   32  HUNDRED FIFTY-FIVE TO THE CONTRARY OR SECTION SIXTY-TWO HUNDRED EIGHTEEN
   33  OF THE EDUCATION LAW, BEFORE ANY CONTRACT AWARDED UNDER  AN  ALTERNATIVE
   34  PROCUREMENT  WHICH  EXCEEDS  FIFTY  THOUSAND  DOLLARS  IN AMOUNT BECOMES
   35  EFFECTIVE IT MUST BE APPROVED BY THE COMPTROLLER AND FILED IN HIS OR HER
   36  OFFICE.
   37    D. FOR EACH ALTERNATIVE PROCUREMENT AWARDED, THE COMMISSIONER OR STATE
   38  AGENCY SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER AND  THE  HEADS  OF
   39  THE  FISCAL  COMMITTEES  OF EACH HOUSE OF THE STATE LEGISLATURE NO LATER
   40  THAN THE MID-POINT OF THE INITIAL  TERM  OF  THE  RESULTANT  CONTRACT  A
   41  REPORT  ASSESSING THE VALIDITY OF THE ALTERNATIVE PROCUREMENT METHOD AND
   42  COMPARING  ITS  RESULTS  TO  STANDARD  PROCUREMENT  METHODS  FOR  GOODS,
   43  SERVICES OR TECHNOLOGY.
   44    E.  THE COMMISSIONER OF GENERAL SERVICES SHALL PREPARE A REPORT ON THE
   45  SAVINGS  ACHIEVED  FROM  ALL  CONTRACTS  ESTABLISHED  AS  A  CENTRALIZED
   46  CONTRACT  THROUGH  THE  OFFICE  OF  GENERAL  SERVICES  PURSUANT  TO THIS
   47  SECTION, THE IMPACT OF SUCH CONTRACTS ON SMALL, MINORITY AND WOMEN-OWNED
   48  BUSINESS  ENTERPRISES,  AND  THE  EFFECTIVENESS  OF  SUCH  CONTRACTS  IN
   49  FULFILLING  THE  PURCHASING  NEEDS  OF  ALL  AUTHORIZED  USERS  OF  SUCH
   50  CONTRACTS. SUCH REPORT SHALL BE SUBMITTED BY SUCH  COMMISSIONER  TO  THE
   51  GOVERNOR,  THE STATE COMPTROLLER, AND THE HEADS OF THE FISCAL COMMITTEES
   52  OF EACH HOUSE OF THE STATE LEGISLATURE NO LATER THAN JANUARY  FIFTEENTH,
   53  TWO THOUSAND FIFTEEN, AND THEREAFTER ANNUALLY ON OR BEFORE SUCH DATE.
   54    S  3.  This act shall take effect immediately; provided, however, that
   55  the amendments to section 163 of the state finance law made  by  section
       A. 9689                             3

    1  two of this act shall not affect the repeal of such section and shall be
    2  deemed repealed therewith.
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