A01123 Summary:

BILL NO    A01123 

SAME AS    No same as 

SPONSOR    Cahill (MS)

COSPNSR    

MLTSPNSR   Brindisi

Add S139-l, amd S163, St Fin L; amd S142, Ec Dev L; amd S100-a, Gen Muni L; amd
S2879, Pub Auth L

Includes net economic impact as a factor to consider in awarding state
procurement contracts.
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A01123 Actions:

BILL NO    A01123 

01/08/2015 referred to governmental operations
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A01123 Votes:

There are no votes for this bill in this legislative session.
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A01123 Memo:

BILL NUMBER:A1123

TITLE OF BILL:  An act to amend the state finance law, the economic
development law, the general municipal law and the public authorities
law, in relation to considering net economic impact in procurement
contracts

PURPOSE OR GENERAL IDEA OF BILL: To assure state procurement contracts
to any contractor are awarded on the basis of the economic benefits
such contract has on the New York economy. This bill would authorize
the Office of the State Comptroller to establish rules and regulations
in reference to the evaluation and awarding of state contracts to
include the proposal's quantifiable long-term fiscal benefits to the
State.

SUMMARY OF SPECIFIC PROVISIONS: State Finance Law is amended to
include Section 139-j, which defines "Net Economic Impact," and
authorizes the Office of the State Comptroller to promulgate rules and
regulations to create the evaluation process.

Section 142 of the Economic Development Law is amended to authorize
the Commissioner of Economic Development to make notice of any changes
to any procurement contract opportunity to be communicated in its
Procurement Opportunities Newsletter.

Section 100-a of the General Municipal Law is amended to include the
economic impact be considered as the priority when negotiating
contracts for public works and public purchases.

Subdivision 1 of Section 2879 of the Public Authorities Law is amended
to authorize any public authority and public benefit corporation to
adopt comprehensive guidelines regarding purchases to include the
economic impact of such contract as defined in Section 139-j of the
State Finance Law.

JUSTIFICATION: This legislation would create a statewide procurement
policy for state agencies, public authorities and public works
purchases that would assure those public funds are spent in the most
efficient and economically beneficial manner. Currently, state
contracts are awarded based on the lowest bid submitted. The lowest
bid does not equate to the best bid or most economically beneficial
purchase. Although the lowest bid remains part of the purchasing
criteria, this bill would take into consideration the entire economic
impact a state contract would on New York's economy. By evaluating the
perspective proposal on the basis of its net economic impact, the
state can create a level playing field for all businesses competing
for state contracts.

PRIOR LEGISLATIVE HISTORY:  2013-2014: A.1243 - Referred to
Governmental Operations 2011-2012: A.59 - Referred to Governmental
Operations 2009-2010 : A.572 - Referred to Governmental Operations
2007-2008 : A.3928 - Referred to Governmental Operations 2005-2006 :
A.7882 - Referred to Governmental Operations 2004: A.11689 - Referred
to Governmental Operations

FISCAL IMPLICATIONS: None


EFFECTIVE DATE: This act shall take effect on the one hundred
eightieth day after it shall become law.
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A01123 Text:

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

                                         1123

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                    January 8, 2015
                                      ___________

       Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. BRINDISI
         -- read once and referred to the Committee on Governmental Operations

       AN ACT to amend the state finance law, the economic development law, the
         general  municipal  law and the public authorities law, in relation to
         considering net economic impact in procurement contracts

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

    1    Section  1.  Short  title. This act shall be known and may be cited as
    2  the "competitive procurement act".
    3    S 2. Legislative findings. The legislature hereby finds that in  order
    4  to  assure the economically sound use of public funds for the benefit of
    5  the entire state and to facilitate the  acquisition  of  facilities  and
    6  commodities  of  maximum quality, this act shall require the negotiation
    7  of such procurement contracts for public works and public  purchases  to
    8  make  the  net  economic  impact of such contract a priority in awarding
    9  such procurement contracts. Although the economic  impact  traditionally
   10  includes  evaluation  of  the direct, indirect, and induced impacts of a
   11  contract on the economy of this state,  the  legislature  further  finds
   12  that  the "net economic impact" must include consideration of the lowest
   13  responsible bid and best  value  as  additional  component  criteria  in
   14  determining  the  overall  economic  impact of a contract on the state's
   15  economy. Therefore, it is in the public's best interest  to  incorporate
   16  the lowest responsible bid and best value criteria into the net economic
   17  impact criterion in order to award the most economically viable procure-
   18  ment contracts in New York state.
   19    S 3. The state finance law is amended by adding a new section 139-l to
   20  read as follows:
   21    S  139-L.  NET  ECONOMIC IMPACT IN PROCUREMENT CONTRACTS.  1. NOTWITH-
   22  STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, WHERE A CONTRACT IS
   23  TO BE AWARDED BY A STATE AGENCY, PUBLIC AUTHORITY OR MUNICIPALITY PURSU-
   24  ANT TO A COMPETITIVE BIDDING PROCESS OR A REQUEST FOR PROPOSAL  PROCESS,

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06228-01-5
       A. 1123                             2

    1  SUCH  STATE  AGENCY, PUBLIC AUTHORITY OR MUNICIPALITY SHALL REQUIRE THAT
    2  ANY PROPOSAL SUBMITTED BY A PROSPECTIVE CONTRACTOR IN  RESPONSE  THERETO
    3  INCLUDE  AN  ECONOMIC  IMPACT  STATEMENT  DETAILING  HOW AN AWARD OF THE
    4  CONTRACT  TO  THE PARTICULAR CONTRACTOR WOULD BENEFIT THE ECONOMY OF NEW
    5  YORK STATE AND SHALL PROVIDE THAT NET ECONOMIC IMPACT WILL BE CONSIDERED
    6  IN MAKING THE AWARD. THE WEIGHT TO BE GIVEN TO SUCH NET ECONOMIC  IMPACT
    7  CRITERION  RELATIVE  TO  OTHER  CRITERIA USED TO EVALUATE THE PROPOSALS,
    8  INCLUDING LOWEST RESPONSIBLE BIDDER AND BEST VALUE, SHALL BE  DETERMINED
    9  BY  THE  CONTRACTING AGENCY, AUTHORITY OR MUNICIPALITY ON A CASE BY CASE
   10  BASIS. THE STATE AGENCY, PUBLIC AUTHORITY, OR  MUNICIPALITY  SHALL  GIVE
   11  PRIORITY  TO  THE NET ECONOMIC IMPACT CRITERION WHEREVER PRACTICABLE AND
   12  SET FORTH THE BASIS FOR ITS AWARD IN WRITING.
   13    2. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE
   14  THE FOLLOWING DEFINITIONS:
   15    (A)  "NET  ECONOMIC  IMPACT" MEANS THE MEASURE OF ECONOMIC STIMULATION
   16  THAT OCCURS FROM PURCHASING TRANSACTIONS THAT HAVE OCCURRED  WITHIN  THE
   17  LOCAL  ECONOMY  OF  NEW  YORK  STATE AND THE LOWEST RESPONSIBLE BID. NET
   18  ECONOMIC IMPACT SHALL BE MEASURED BY DIRECT IMPACT, INDIRECT IMPACT  AND
   19  INDUCED  IMPACT, AS WELL AS LOWEST RESPONSIBLE BID AND BEST VALUE, WHICH
   20  ARE DEFINED AS:
   21    (1) "DIRECT IMPACT" MEANS  THE  AMOUNT  OF  DIRECT  ECONOMIC  ACTIVITY
   22  GENERATED  BY  THE  PURCHASING TRANSACTION, OR BUSINESS TRANSACTIONS, IN
   23  QUESTION. THE SETS OF NUMBERS USED TO  DETERMINE  DIRECT  IMPACT  ARE  A
   24  RESULT  OF  DEVELOPING  PER CAPITA NUMBERS BASED ON ACTUAL ECONOMIC DATA
   25  SUPPLIED BY TRANSACTION MANAGEMENT, ATTENDANCE FIGURES, AND OTHER FINAN-
   26  CIAL INFORMATION FOR ALL  TRANSACTION-RELATED  ACTIVITIES,  AS  WELL  AS
   27  USING  AVAILABLE  TRANSACTION  INDUSTRY  AVERAGE  PER CAPITA EXPENDITURE
   28  LEVELS FOR VARIOUS ITEMS.
   29    (2) "INDIRECT IMPACT" INCLUDES ECONOMIC ACTIVITY FELT BY BUSINESSES AS
   30  AN INDIRECT RESULT OF THE PURCHASING OR BUSINESS TRANSACTION.
   31    (3) "INDUCED IMPACT" IS THE IMPACT GENERATED  WHEN  THOSE  SURROUNDING
   32  BUSINESSES  PURCHASE  ADDITIONAL  PRODUCTS  AND  SERVICES, AND HIRE MORE
   33  EMPLOYEES TO MEET THE DEMAND BROUGHT ON BY DIRECT AND INDIRECT IMPACTS.
   34    (4) "LOWEST RESPONSIBLE BIDDER" MEANS ANY PERSON,  FIRM,  CORPORATION,
   35  SUCCESSOR  CORPORATION,  CONTRACTOR OR SUBCONTRACTOR WHO (I) SUBMITS THE
   36  LOWEST RESPONSIBLE BID AND (II)  IS  NOT  DISQUALIFIED  ON  ANY  OF  THE
   37  GROUNDS PROVIDED BY LAW, RULE OR REGULATION.
   38    (5)  "BEST  VALUE" MEANS THE SAME AS IN SUBDIVISION ONE OF SECTION ONE
   39  HUNDRED SIXTY-THREE OF THIS CHAPTER.
   40    (B) "MUNICIPALITY" SHALL MEAN ANY CITY, TOWN, VILLAGE, COUNTY, MUNICI-
   41  PAL CORPORATION, DISTRICT CORPORATION, DISTRICT OR ANY  OFFICE,  DEPART-
   42  MENT OR AGENCY, THEREOF.
   43    (C)  "STATE AGENCY" SHALL, NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
   44  MEAN ANY STATE DEPARTMENT, BOARD,  BUREAU,  DIVISION,  OFFICE,  COUNCIL,
   45  COMMITTEE  OR OFFICER OF THE STATE, OR THE STATE UNIVERSITY OF NEW YORK,
   46  OR THE SENIOR COLLEGES OF THE CITY UNIVERSITY OF NEW YORK, OR ANY PUBLIC
   47  BENEFIT CORPORATION OR COMMISSION AT LEAST  ONE  OF  WHOSE  MEMBERS  ARE
   48  APPOINTED BY THE GOVERNOR.
   49    3.  THE COMPTROLLER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC
   50  DEVELOPMENT SHALL ESTABLISH, THROUGH THE PROMULGATION OF RULES AND REGU-
   51  LATIONS, AND IN CONSULTATION WITH THE HEADS OF STATE AGENCIES, A  METHOD
   52  FOR  STRUCTURING  REQUESTS  FOR  PROPOSALS  TO  REQUIRE  INCLUSION OF AN
   53  ECONOMIC IMPACT STATEMENT AND IN EVALUATING RESPONSES TO  SUCH  REQUESTS
   54  FOR  PROPOSALS. THE COMPTROLLER SHALL ALSO ESTABLISH THROUGH THE PROMUL-
   55  GATION OF RULES AND REGULATIONS GUIDELINES FOR AGENCIES, AUTHORITIES AND
   56  MUNICIPALITIES TO INCORPORATE CONSIDERATION OF  THE  LOWEST  RESPONSIBLE
       A. 1123                             3

    1  BIDDER  CRITERIA INTO THE NET ECONOMIC IMPACT FORMULA. SUCH NET ECONOMIC
    2  IMPACT SHALL INCLUDE, BUT NOT BE  LIMITED  TO,  CONSIDERATION  OF  WHERE
    3  SUBCONTRACTORS  USED  BY  CONTRACTORS TO FULFILL A CONTRACT ARE LOCATED,
    4  HOW  MANY  JOBS IN THE STATE, IF ANY, WILL BE CREATED BY THE AWARDING OF
    5  SUCH A CONTRACT, AND THE ESTIMATED TAX REVENUE  AND  ANCILLARY  ECONOMIC
    6  ACTIVITY  THAT  WOULD  BE GENERATED IN THE STATE THROUGH THE AWARDING OF
    7  SUCH CONTRACTS AND SUBSEQUENT SUBCONTRACTS, LOWEST RESPONSIBLE BID,  AND
    8  BEST VALUE. SUCH RULES AND REGULATIONS SHALL INCLUDE A PROCEDURE WHEREBY
    9  A  STATE  AGENCY,  PUBLIC AUTHORITY OR MUNICIPALITY MAY REQUEST A WAIVER
   10  FROM THE REQUIREMENTS OF THIS SECTION.
   11    4. (A) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CONTRACTS FOR
   12  WHICH A STATE AGENCY, PUBLIC AUTHORITY, OR MUNICIPALITY  RECEIVES  FUNDS
   13  ADMINISTERED  BY  THE  FEDERAL GOVERNMENT, EXCEPT TO THE EXTENT THAT THE
   14  FEDERAL GOVERNMENT WOULD NOT WITHHOLD SUCH  FUNDS  OWING  TO  THE  STATE
   15  AGENCY'S,  PUBLIC  AUTHORITY'S,  OR  MUNICIPALITY'S COMPLIANCE WITH THIS
   16  SECTION.
   17    (B) THE PROVISIONS OF  THIS  SECTION  SHALL  NOT  APPLY  TO  CONTRACTS
   18  BETWEEN  A STATE AGENCY, PUBLIC AUTHORITY, OR MUNICIPALITY IN NEGOTIATED
   19  RECIPROCITY FOR GOODS OR SERVICES, EXCEPT TO THE EXTENT  THAT  SUCH  NET
   20  ECONOMIC IMPACT SHALL NOT UNDERMINE SUCH RECIPROCAL CONTRACT AGREEMENT.
   21    5.  ANY PERSON, FIRM, CORPORATION, SUCCESSOR CORPORATION, LABOR ORGAN-
   22  IZATION, CONTRACTOR OR SUBCONTRACTOR MAY, WITHIN TEN DAYS AFTER A BID IS
   23  ACCEPTED, FILE AN APPLICATION TO  CHALLENGE  THE  DETERMINATION.    UPON
   24  RECEIPT  OF  SUCH  APPLICATION, THE COMPTROLLER, OR HIS OR HER DESIGNEE,
   25  SHALL CONDUCT A HEARING TO DETERMINE THE VALIDITY  OF  THE  APPLICATION.
   26  NOTICE  SHALL BE GIVEN TO THE APPLICANT AND TO THE PROPOSED CONTRACT BID
   27  AWARDEE OF THE DATE, TIME AND PLACE OF THE HEARING.  THE  APPLICANT  AND
   28  THE  PROPOSED  CONTRACT  BID  AWARDEE  SHALL BE GIVEN THE OPPORTUNITY TO
   29  PRESENT EVIDENCE AND WITNESSES ON THEIR BEHALF. THE COMPTROLLER, OR  HIS
   30  OR HER DESIGNEE, PRESIDING OVER SUCH HEARING SHALL ISSUE A WRITTEN DECI-
   31  SION  WITH FINDINGS OF FACT WHETHER THE PROPOSED CONTRACT BID AWARDEE IS
   32  VALID. SUCH CONTRACT SHALL NOT BE AWARDED PRIOR TO  SUCH  DECISION.  THE
   33  AWARDING  AGENCY,  AUTHORITY,  OR  MUNICIPALITY SHALL NOTIFY ALL BIDDERS
   34  REGARDING THE SELECTION OF ITS PROPOSED CONTRACT BID AWARDEE.
   35    S 4. The opening paragraph and paragraph c of subdivision 2, the open-
   36  ing paragraph and subparagraphs (ii), (v) and (vi) of  paragraph  a  and
   37  subparagraph  (i)  of paragraph b of subdivision 3 of section 163 of the
   38  state finance law, as added by chapter 83  of  the  laws  of  1995,  are
   39  amended to read as follows:
   40    The  objective  of state procurement is to facilitate each state agen-
   41  cy's mission while protecting the interests of the state and its taxpay-
   42  ers and promoting fairness in contracting with the  business  community.
   43  The  state's  procurement  process  shall  be guided by the NET ECONOMIC
   44  IMPACT, PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE-L OF  THIS  CHAPTER,
   45  OF A CONTRACT ON THE STATE AND THE following principles:
   46    c.  To  encourage  the  investment  of  the private and not-for-profit
   47  sectors in New York state by making reasonable efforts  to  ensure  that
   48  offerers  are  apprised  of procurement opportunities; by specifying the
   49  elements of a responsive bid and disclosing  the  process  for  awarding
   50  contracts  including,  if  applicable,  the  relative  importance and/or
   51  weight of [cost] NET ECONOMIC IMPACT and the overall technical criterion
   52  for evaluating offers; and by  ensuring  the  procurement  is  conducted
   53  accordingly.
   54    State  agency  procurement practices for commodities shall incorporate
   55  NET ECONOMIC IMPACT, PURSUANT TO SECTION ONE  HUNDRED  THIRTY-NINE-L  OF
   56  THIS CHAPTER, AND THEN the following:
       A. 1123                             4

    1    (ii)  Commodities  contracts  shall be awarded on the basis of [lowest
    2  price to] NET ECONOMIC IMPACT OF a responsive and  responsible  offerer;
    3  or,  in  the  case of multiple awards, in accordance with paragraph c of
    4  subdivision ten of this section.
    5    (v)  Consistent  with guidelines issued by the state procurement coun-
    6  cil, state agencies may competitively purchase commodities  procured  in
    7  accordance with this article in lieu of using centralized contracts when
    8  the  resultant  [price  is less] NET ECONOMIC IMPACT IS GREATER than the
    9  centralized contract [price].
   10    (vi) When justified by [price] NET ECONOMIC  IMPACT,  state  agencies,
   11  and  hospitals  and  facilities managed and controlled by state agencies
   12  eligible pursuant to section twenty-eight hundred three-a of the  public
   13  health  law,  shall be eligible to make purchases pursuant to guidelines
   14  issued by the state procurement council from a consortium or  comparable
   15  entity in lieu of using centralized contracts for commodities.
   16    (i)  determine,  in cooperation with the state procurement council and
   17  state agencies, the  identity,  form,  function  and  utility  of  those
   18  commodities  which  shall  be  made  available on or through centralized
   19  contracts. CRITERIA SHALL INCLUDE THE NET ECONOMIC IMPACT, AS DEFINED IN
   20  SECTION ONE HUNDRED THIRTY-NINE-L OF THIS CHAPTER, ON NEW  YORK  STATE'S
   21  ECONOMY.  Criteria  may  include, but need not be limited to, the avail-
   22  ability of a volume discount, prior use of  the  commodity  among  state
   23  agencies  and the relative cost of establishing the contract, its antic-
   24  ipated use and expected actual savings for the state.  The  commissioner
   25  may also act as a broker for state agencies to procure commodities.
   26    S 5. The opening paragraph and paragraph d of subdivision 4 of section
   27  163  of  the  state  finance  law, as added by chapter 83 of the laws of
   28  1995, are amended to read as follows:
   29    State agency procurement practices for services shall incorporate  THE
   30  NET  ECONOMIC IMPACT, AS DEFINED IN SECTION ONE HUNDRED THIRTY-NINE-L OF
   31  THIS CHAPTER, AND THEN the following:
   32    d. Service contracts shall be awarded on the basis of [best value  to]
   33  NET  ECONOMIC IMPACT OF a responsive and responsible offerer; or, in the
   34  case of multiple awards, in accordance with paragraph c  of  subdivision
   35  ten of this section.
   36    S  6.  Subdivision 7, paragraphs a and b of subdivision 9, the opening
   37  paragraph and paragraph a of subdivision 10, and the  opening  paragraph
   38  of  subdivision  11 of section 163 of the state finance law, as added by
   39  chapter 83 of the laws of 1995, and subdivision 7 as amended by  section
   40  10  of  part L of chapter 55 of the laws of 2012, are amended to read as
   41  follows:
   42    7. Method of procurement. Consistent with the requirements of subdivi-
   43  sions three and four of this section, state agencies shall select  among
   44  permissible  methods  of  procurement  including, but not limited to, an
   45  invitation for bid, request for proposals or other means of solicitation
   46  pursuant to guidelines issued by the state  procurement  council.  State
   47  agencies  may  accept  bids  electronically  including submission of the
   48  statement of non-collusion required by section one hundred thirty-nine-d
   49  of this chapter and, starting April  first,  two  thousand  twelve,  and
   50  ending  March  thirty-first,  two  thousand fifteen, may, for commodity,
   51  service and technology contracts require electronic  submission  as  the
   52  sole method for the submission of bids for the solicitation. State agen-
   53  cies shall undertake no more than eighty-five such electronic bid solic-
   54  itations, none of which shall be reverse auctions, prior to April first,
   55  two  thousand  fifteen.  In  addition,  state agencies may conduct up to
   56  twenty reverse auctions through electronic means, prior to April  first,
       A. 1123                             5

    1  two  thousand  fifteen.  Prior to requiring the electronic submission of
    2  bids, the agency shall make a determination, which shall  be  documented
    3  in the procurement record, that electronic submission affords a fair and
    4  equal opportunity for offerers to submit responsive offers. Within thir-
    5  ty  days  of the completion of the eighty-fifth electronic bid solicita-
    6  tion, or by April first, two thousand fifteen, whichever is earlier, the
    7  commissioner shall prepare a report  assessing  the  use  of  electronic
    8  submissions  and  make  recommendations  regarding  future  use  of this
    9  procurement method. In addition, within thirty days of the completion of
   10  the twentieth reverse auction through  electronic  means,  or  by  April
   11  first,  two  thousand  fifteen,  whichever  is earlier, the commissioner
   12  shall prepare a report assessing the use  of  reverse  auctions  through
   13  electronic  means  and make recommendations regarding future use of this
   14  procurement method. Such reports shall be published on  the  website  of
   15  the  office of general services. Except where otherwise provided by law,
   16  procurements shall be competitive,  and  state  agencies  shall  conduct
   17  formal competitive procurements to the maximum extent practicable. State
   18  agencies  shall  document the determination of the method of procurement
   19  and the basis of award in the procurement record. Where  the  basis  for
   20  award  is  the  best [value] NET ECONOMIC IMPACT offer, the state agency
   21  shall document, in the procurement record and in advance of the  initial
   22  receipt  of  offers, the determination of the evaluation criteria, which
   23  whenever possible, shall be quantifiable, and the process to be used  in
   24  the  determination of best [value] NET ECONOMIC IMPACT and the manner in
   25  which the evaluation process and selection shall be conducted.
   26    a. The commissioner or a state agency shall select  a  formal  compet-
   27  itive  procurement  process in accordance with guidelines established by
   28  the state procurement council and  document  its  determination  in  the
   29  procurement  record. The process shall include, but is not limited to, a
   30  clear statement of need; a description of  the  required  specifications
   31  governing  performance  and  related  factors;  a reasonable process for
   32  ensuring a competitive field; a fair and equal opportunity for  offerers
   33  to  submit  responsive  offers; and a balanced and fair method of award.
   34  Where the basis for the award  is  best  [value]  NET  ECONOMIC  IMPACT,
   35  documentation  in  the  procurement  record  shall,  where  practicable,
   36  include a quantification of the  application  of  the  criteria  to  the
   37  rating  of proposals and the evaluation results, or, where not practica-
   38  ble, such other justification which demonstrates that best  [value]  NET
   39  ECONOMIC IMPACT will be achieved.
   40    b.  The  solicitation  shall  prescribe  the minimum specifications or
   41  requirements that must be met in order to be considered  responsive  and
   42  shall  describe  and disclose the general manner in which the evaluation
   43  and selection shall be conducted. Where  appropriate,  the  solicitation
   44  shall  identify  the  relative  importance  and/or  weight of [cost] NET
   45  ECONOMIC IMPACT and the overall technical criterion to be considered  by
   46  a state agency in its determination of best [value] NET ECONOMIC IMPACT.
   47    Contracts  for  commodities  shall  be awarded on the basis of [lowest
   48  price to] NET ECONOMIC IMPACT OF a responsive and  responsible  offerer,
   49  PURSUANT   TO   SECTION  ONE  HUNDRED  THIRTY-NINE-L  OF  THIS  CHAPTER.
   50  Contracts for services shall be awarded on the basis of best [value] NET
   51  ECONOMIC IMPACT from a responsive and responsible offerer,  PURSUANT  TO
   52  SECTION  ONE HUNDRED THIRTY-NINE-L OF THIS CHAPTER.  Multiple awards for
   53  services and commodities shall be conducted in accordance with paragraph
   54  c of this subdivision.
   55    a. Selection and  award  shall  be  a  written  determination  in  the
   56  procurement  record  made  by  the  commissioner  or a state agency in a
       A. 1123                             6

    1  manner consistent with the provisions of the solicitation. In the  event
    2  two offers are found to be substantially equivalent, [price] NET ECONOM-
    3  IC  IMPACT  shall  be  the basis for determining the award recipient or,
    4  when  [price]  NET  ECONOMIC  IMPACT  and  other factors are found to be
    5  substantially equivalent, the determination of the commissioner or agen-
    6  cy head to award a contract to one or more  of  such  bidders  shall  be
    7  final.  The  basis  for determining the award shall be documented in the
    8  procurement record.
    9    It shall be the responsibility of the head of  each  state  agency  to
   10  periodically  sample  the results of the procurement process to test for
   11  reasonableness; to ensure that the results withstand public scrutiny and
   12  that the quality and the price of  the  purchase  makes  sense;  and  to
   13  ensure that purchasing is conducted in a manner consistent with the best
   14  NET ECONOMIC IMPACT interests of the state.
   15    S  7. Subdivision 1 of section 142 of the economic development law, as
   16  amended by chapter 137 of the laws  of  2008,  is  amended  to  read  as
   17  follows:
   18    1.  The  commissioner  shall  publish  on  a daily basis a procurement
   19  opportunities newsletter, which shall  contain  notices  of  procurement
   20  contract  opportunities and any other information the commissioner deems
   21  necessary to effectuate the purposes of this article INCLUDING, BUT  NOT
   22  LIMITED  TO,  ANY  CHANGES  IN  THE LAW, RULES AND REGULATIONS REGARDING
   23  PROCUREMENT CONTRACTS. Notices  of  procurement  contract  opportunities
   24  shall be available on the internet for at least fifteen days.
   25    S  8.  Section 100-a of the general municipal law, as added by chapter
   26  363 of the laws of 1964, is amended to read as follows:
   27    S 100-a. Declaration of policy. [It] NOTWITHSTANDING ANY PROVISION  OF
   28  THIS  ARTICLE TO THE CONTRARY, IT is hereby declared to be the policy of
   29  this state that this article  shall  [be  construed]  CONSIDER  THE  NET
   30  ECONOMIC  IMPACT, AS DEFINED IN SECTION ONE HUNDRED THIRTY-NINE-L OF THE
   31  STATE FINANCE LAW, AS THE PRIORITY in the negotiation of  contracts  for
   32  public  works  and  public purchases to which political subdivisions [or
   33  and district] AND/OR DISTRICTS therein [is] ARE a party so as to  assure
   34  the  prudent  and economical use of public moneys for the benefit of all
   35  the inhabitants of the state and to facilitate the acquisition of facil-
   36  ities and commodities of maximum quality [at the lowest possible cost].
   37    S 9. Subdivision 1 of section 2879 of the public authorities  law,  as
   38  amended  by  chapter  564  of  the  laws  of 1988, is amended to read as
   39  follows:
   40    1. Every public authority and public benefit corporation,  a  majority
   41  of  the  members  of  which  consist  of persons either appointed by the
   42  governor or who serve as members by virtue of holding a civil office  of
   43  the state, or a combination thereof, (such entities to be hereinafter in
   44  this  section  referred  to  as "corporation") shall adopt by resolution
   45  comprehensive guidelines which detail the corporation's operative policy
   46  and instructions regarding the use, awarding, monitoring  and  reporting
   47  of  procurement contracts.   NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
   48  RULE OR REGULATION, SUCH GUIDELINES SHALL INCLUDE, BUT  NOT  BE  LIMITED
   49  TO,  MAKING  CONSIDERATION  OF  THE  NET  ECONOMIC IMPACT, AS DEFINED IN
   50  SECTION ONE HUNDRED THIRTY-NINE-L OF THE STATE FINANCE LAW, THE PRIORITY
   51  IN AWARDING PROCUREMENT CONTRACTS. Guidelines  approved  by  the  corpo-
   52  ration shall be annually reviewed and approved by the corporation.
   53    S  10.  This  act  shall  take effect on the one hundred eightieth day
   54  after it shall have become a law; provided, however, the  provisions  of
   55  this  act  shall  be  applied  to all contracts entered into on or after
   56  April 1, 2015; and provided, further, however, that  the  amendments  to
       A. 1123                             7

    1  the  provisions of section 163 of the state finance law made by sections
    2  four, five and six of this act shall  not  affect  the  repeal  of  such
    3  section  and shall be deemed repealed therewith.  Effective immediately,
    4  the  addition,  amendment and/or repeal of any rule or regulation neces-
    5  sary for the implementation of this act on its effective date is author-
    6  ized and directed to be made and completed on or before such date.
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