Requires public authorities and public benefit corporations to negotiate with professional firms providing architectural, engineering, geological, landscape architectural or surveying services in order from the most qualified to the least qualified with regard to the provision of services to the authority or corporation.
STATE OF NEW YORK
________________________________________________________________________
5520
2025-2026 Regular Sessions
IN ASSEMBLY
February 14, 2025
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to requiring
public authorities and public benefit corporations to negotiate with
professional firms providing architectural, engineering, geological,
landscape architectural or surveying services in order from the most
qualified to the least qualified with regard to the provision of
services to the authority or corporation
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (iv) of paragraph (b) of subdivision 3 of
2 section 2879 of the public authorities law, as amended by chapter 383 of
3 the laws of 1994, is amended to read as follows:
4 (iv) as used in this subparagraph, the term "professional firm" shall
5 be defined as any individual or sole proprietorship, partnership, corpo-
6 ration, association, or other legal entity permitted by law to practice
7 the professions of architecture, engineering or surveying.
8 It is the policy of New York state to negotiate contracts for archi-
9 tectural services and/or engineering services and/or geological services
10 and/or landscape architectural services and/or surveying services on the
11 basis of demonstrated competence and qualification for the type of
12 professional services required and at fair and reasonable fees.
13 In the procurement of architectural, engineering, geological, land-
14 scape architectural and surveying services, the corporation is required
15 to encourage professional firms engaged in the lawful practice of the
16 profession to submit an annual statement of qualifications and perform-
17 ance data. The corporation for each proposed project is required to
18 evaluate current statements of qualifications and performance data on
19 file with the corporation. If desired, the corporation may conduct
20 discussions with three or more professional firms regarding anticipated
21 design concepts and proposed methods of approach to the assignment. The
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06047-01-5
A. 5520 2
1 corporation is required to select, in order of preference, based upon
2 criteria established by the corporation, no less than three professional
3 firms deemed to be the most highly qualified to provide the services
4 required.
5 Every corporation is required to negotiate a contract with the highest
6 qualified professional firm for architectural services and/or engineer-
7 ing services and/or geological services and/or landscape architectural
8 services and/or surveying services at compensation which the corporation
9 determines in writing to be fair and reasonable to such corporation. In
10 making this decision, the corporation is required to take into account
11 the estimated value of the services to be rendered, including the costs,
12 the scope, complexity and professional nature thereof.
13 The corporation shall not refuse to negotiate with a professional firm
14 solely because the ratio of the "allowable indirect costs" to direct
15 labor costs of the professional firm or the hourly labor rate in any
16 labor category of the professional firm exceeds a limitation generally
17 set by the corporation in the determination of the reasonableness of the
18 estimated cost of services to be rendered by the professional firm, but
19 rather the corporation should also consider the reasonableness of cost
20 based on the total estimated cost of the service of the professional
21 firm which should include, among other things, all the direct labor
22 costs of the professional firm for such services plus all "allowable
23 indirect costs," other direct costs, and negotiated profit of the
24 professional firm. "Allowable indirect costs" of a professional firm are
25 defined as those costs generally associated with overhead which cannot
26 be specifically identified with a single project or contract and are
27 considered reasonable and allowable under specific state contract or
28 allowability limits. Should the corporation choose to engage in a qual-
29 ification based procurement and be unable to negotiate a satisfactory
30 contract with the professional firm considered to be the most qualified,
31 at a fee the corporation determines to be fair and reasonable to the
32 corporation, negotiations with that professional firm shall be formally
33 terminated. The corporation shall then undertake negotiations with the
34 second most qualified professional firm. Failing accord with the second
35 most qualified professional firm, the corporation shall formally termi-
36 nate negotiations. The corporation shall then undertake negotiations
37 with the third most qualified professional firm. Should the corporation
38 be unable to negotiate a satisfactory contract with any of the selected
39 professional firms, it shall select additional professional firms in
40 order of their competence and qualifications and it shall continue nego-
41 tiations in accordance with this section until an agreement is reached.
42 The provisions of this subparagraph shall only apply to engineering
43 services and/or architectural services and/or geological services and/or
44 landscape architectural services and/or surveying services in excess of
45 twenty-five thousand dollars and shall not apply to the metropolitan
46 transportation authority, the New York city transit authority or the
47 Triborough bridge and tunnel authority or to any of their subsidiaries.
48 § 2. This act shall take effect immediately.
