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A07768 Summary:

Amd 136-a, St Fin L
Relates to state contracts for geological services.
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A07768 Actions:

05/15/2017referred to governmental operations
06/15/2017reported referred to ways and means
06/19/2017reported referred to rules
06/19/2017rules report cal.507
06/19/2017ordered to third reading rules cal.507
06/20/2017substituted by s5903
 05/23/20171ST REPORT CAL.1285
 05/24/20172ND REPORT CAL.
 06/13/2017PASSED SENATE
 06/13/2017referred to governmental operations
 06/20/2017substituted for a7768
 06/20/2017ordered to third reading rules cal.507
 06/20/2017passed assembly
 06/20/2017returned to senate
 10/23/2017SIGNED CHAP.388
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A07768 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the state finance law, in relation to state contracts for geological services   PURPOSE OR GENERAL IDEA OF BILL: This bill would add geological services to the current list of profes- sional services procured through the qualifications based selection process.   SUMMARY OF PROVISIONS: Section 1: Amends subdivision 1, subdivision 2, subdivision 3, subdivi- sion 4, and subdivision 5 of section 136-a of the state finance law by inserting the word "geological".   JUSTIFICATION: The intent of this bill is to ensure that state agencies receive the services of the most qualified contractor through the establishment of a mechanism for the procurement of geological services. Current law includes architectural services, engineering services, and land survey- ing services, but not geological services. Qualifications Based Selections (QBS) is a procurement process that is used widely throughout the country and has recently been adopted by New York City. Instead of cost-based procurement which focuses primarily on price, QBS procurement focuses on qualifications and experience as the paramount basis for selection. However, after the highest technically ranked firm is selected and the project scope is fully defined, QBS generates a realistic fee based on a fee proposal by the consultant and negotiations with the agency. If an agency cannot negotiate a fair price with the first choice consultant, it has the option to negotiate with the next highly qualified consultant, and so on. QBS allows agencies to select the design firm with the best experience, capabilities, technical approach and quality of personnel, matched to the needs of the project and the agency; generates better plans and specifications, resulting in higher quality contract documents that make bidding on and carrying out construction easier; fosters the development of innovative, cost-effective design solutions at fair market value, resulting in lower overall project costs; and generates design solutions that best meet the needs of the project, emphasizing public health, safety and quality of life. QBS is mandated in at least 46 other states and has proven to be an effective procurement tool. QBS generates competition by bringing more firms into the bidding process. As a result, owners are ensured a better project and a savings to the taxpayer.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS: None to the State - may result in some cost savings to the State.   EFFECTIVE DATE: This act shall take effect immediately.
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A07768 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      May 15, 2017
        Introduced  by  M. of A. FAHY -- read once and referred to the Committee
          on Governmental Operations
        AN ACT to amend the state finance law, in relation  to  state  contracts
          for geological services
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 136-a of the state finance law, as amended by chap-
     2  ter 746 of the laws of 1982, subdivision 4 as amended by chapter 383  of
     3  the laws of 1994, is amended to read as follows:
     4    §  136-a.  Contracts  for  architectural,  engineering, geological and
     5  surveying services. 1. As used in this section: the  term  "professional
     6  firm"  shall  be defined as any individual or sole proprietorship, part-
     7  nership, corporation, association or other legal entity permitted by law
     8  to practice the professions of  architecture,  engineering,  geology  or
     9  surveying.
    10    The term "state department" shall be defined as those state government
    11  departments,  divisions  or  commissions empowered by the state to enter
    12  into contractual agreements on behalf of the state of New York.
    13    2. It is the policy of New  York  state  to  negotiate  contracts  for
    14  architectural  and/or  engineering  services  and/or  geological  and/or
    15  surveying services on the basis of demonstrated  competence  and  quali-
    16  fication  for the type of professional services required and at fair and
    17  reasonable fees.
    18    3. In the procurement of architectural,  engineering,  geological  and
    19  surveying  services,  the  requiring  state  department  shall encourage
    20  professional firms engaged in the lawful practice of the  profession  to
    21  submit  an annual statement of qualifications and performance data.  The
    22  requiring state department for  each  proposed  project  shall  evaluate
    23  current  statements  of qualifications and performance data on file with
    24  the department. If desired, the requiring state department  may  conduct
    25  discussions  with three or more professional firms regarding anticipated

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 7768                             2
     1  design concepts and proposed methods of approach to the assignment.  The
     2  state department shall select, in order of preference, based upon crite-
     3  ria  established  by  the requiring state department, no less than three
     4  professional firms deemed to be the most highly qualified to provide the
     5  services required.
     6    4.  The requiring state department shall negotiate a contract with the
     7  highest qualified professional firm for architectural and/or engineering
     8  services and/or geological service and/or surveying services at  compen-
     9  sation which the department determines in writing to be fair and reason-
    10  able  to  the state of New York. In making this decision, the department
    11  shall take into account the  estimated  value  of  the  services  to  be
    12  rendered,  including  the costs, the scope, complexity, and professional
    13  nature thereof.  The department shall not refuse  to  negotiate  with  a
    14  professional  firm  solely  because the ratio of the "allowable indirect
    15  costs" to direct labor costs of the  professional  firm  or  the  hourly
    16  labor  rate  in  any  labor  category of the professional firm exceeds a
    17  limitation generally set by the department in the determination  of  the
    18  reasonableness  of  the estimated cost of services to be rendered by the
    19  professional firm, but rather the department should  also  consider  the
    20  reasonableness  of cost based on the total estimated cost of the service
    21  of the professional firm which should include, among other  things,  all
    22  the  direct  labor costs of the professional firm for such services plus
    23  all "allowable indirect  costs,"  other  direct  costs,  and  negotiated
    24  profit of the professional firm. "Allowable indirect costs" of a profes-
    25  sional  firm  are defined as those costs generally associated with over-
    26  head which cannot be specifically identified with a  single  project  or
    27  contract  and  are  considered  reasonable  and allowable under specific
    28  state contract  or  allowability  limits.  Should  the  requiring  state
    29  department  be  unable  to  negotiate  a  satisfactory contract with the
    30  professional firm considered to be the most  qualified,  at  a  fee  the
    31  department  determines  to  be  fair  and reasonable to the state of New
    32  York, negotiations with that professional firm shall be formally  termi-
    33  nated.  The requiring state department shall then undertake negotiations
    34  with the second most qualified professional firm.  Failing  accord  with
    35  the  second  most  qualified  professional  firm,  the  department shall
    36  formally terminate negotiations. The requiring  state  department  shall
    37  then  undertake  negotiations with the third most qualified professional
    38  firm. Should the requiring state department be  unable  to  negotiate  a
    39  satisfactory  contract  with  any of the selected professional firms, it
    40  shall select additional professional firms in order of their  competence
    41  and  qualification and it shall continue negotiations in accordance with
    42  this section until an agreement is reached.
    43    5. This legislation shall only apply to engineering  and/or  architec-
    44  tural  services and/or geological and/or surveying services in excess of
    45  twenty-five thousand dollars.
    46    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    47  have become a law.
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