Bill Text: NY S08174 | 2023-2024 | General Assembly | Introduced


Bill Title: Authorizes counties with a population of one million or more persons to undertake certain public works pursuant to project labor agreements; authorizes the use of the alternative delivery method known as design-build contracts; provides for the repeal of such provisions upon expiration thereof.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-11 - REFERRED TO PROCUREMENT AND CONTRACTS [S08174 Detail]

Download: New_York-2023-S08174-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8174

                    IN SENATE

                                    January 11, 2024
                                       ___________

        Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Procurement and Contracts

        AN ACT to authorize, for certain public  works  undertaken  pursuant  to
          project labor agreements, use of the alternative delivery method known
          as  design-build  contracts;  and  providing  for  the  repeal of such
          provisions upon expiration thereof

          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 "county public works investment act".
     3    § 2. For the purposes of this act:
     4    (a) "Authorized entity" shall mean any county within the state  having
     5  a population of one million or more persons.
     6    (b)  "Best  value"  shall  mean  the  basis for awarding contracts for
     7  services to a proposer that  optimizes  quality,  cost  and  efficiency,
     8  price  and  performance  criteria, which may include, but is not limited
     9  to:
    10    (1) The quality of the proposer's performance on previous projects;
    11    (2) The timeliness of the proposer's performance on previous projects;
    12    (3) The level of customer satisfaction with the proposer's performance
    13  on previous projects;
    14    (4) The proposer's record of performing previous  projects  on  budget
    15  and ability to minimize cost overruns;
    16    (5) The proposer's ability to limit change orders;
    17    (6) The proposer's ability to prepare appropriate project plans;
    18    (7) The proposer's technical capacities;
    19    (8) The individual qualifications of the proposer's key personnel;
    20    (9) The proposer's ability to assess and manage risk and minimize risk
    21  impact;
    22    (10) The proposer's financial capability;
    23    (11)  The  proposer's  ability to comply with applicable requirements,
    24  including the provisions of articles 145, 147 and 148 of  the  education
    25  law;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09588-01-3

        S. 8174                             2

     1    (12)  The proposer's past record of compliance with federal, state and
     2  local laws, rules, licensing requirements, where applicable, and  execu-
     3  tive  orders, including but not limited to compliance with the labor law
     4  and other applicable labor and prevailing wage laws, article 15-A of the
     5  executive  law,  and  any other applicable laws concerning minority- and
     6  women-owned business enterprise participation;
     7    (13) The proposer's record of complying with existing labor standards,
     8  maintaining harmonious labor relations, and protecting  the  health  and
     9  safety  of workers and payment of wages above any locally-defined living
    10  wage; and
    11    (14) A quantitative factor to be used in evaluation of bids or  offers
    12  for  awarding of contracts for bidders or offerers that are certified as
    13  minority- or women-owned business enterprises pursuant to  article  15-A
    14  of  the  executive law, and certified pursuant to local law as minority-
    15  or women-owned business enterprises. Where an agency identifies a  quan-
    16  titative factor pursuant to this paragraph, the agency must specify that
    17  businesses  certified  as  minority- or women-owned business enterprises
    18  pursuant to article 15-A of the executive law as well as those certified
    19  as minority- or women-owned business enterprises or pursuant to  section
    20  1304  of  the  New  York  city  charter are eligible to qualify for such
    21  factor. Nothing in this paragraph shall be construed  as  a  requirement
    22  that  such  businesses  be concurrently certified as minority- or women-
    23  owned business enterprises under both article 15-A of the executive  law
    24  and  section 1304 of the New York city charter to qualify for such quan-
    25  titative factors.
    26    Such basis shall reflect, wherever possible, objective  and  quantifi-
    27  able analysis.
    28    (c)  "Cost  plus" shall mean compensating a contractor for the cost to
    29  complete a contract by reimbursing actual costs for labor, equipment and
    30  materials plus an additional amount for overhead and profit.
    31    (d) "Design-build contract" shall mean a contract for the  design  and
    32  construction  of a public work with a single entity, which may be a team
    33  comprised of separate entities.
    34    (e) "Project labor agreement" shall have  the  meaning  set  forth  in
    35  subdivision 1 of section 222 of the labor law. A project labor agreement
    36  shall  require  participation in apprentice training programs in accord-
    37  ance with paragraph (e) of subdivision 2 of such section.
    38    § 3. Any contract for a public work undertaken pursuant to  a  project
    39  labor agreement in accordance with section 222 of the labor law may be a
    40  design-build contract in accordance with this act.
    41    §  4. Notwithstanding any general, special or local law, rule or regu-
    42  lation to the contrary, including but not limited to section 7210 of the
    43  education law, article 5-A of the general municipal law and article 8 of
    44  the public  housing law, and in conformity with the requirements of this
    45  act, for any public work that has an estimated cost of not less than  10
    46  million  dollars and is undertaken pursuant to a project labor agreement
    47  in accordance with section 222 of the labor law,  an  authorized  entity
    48  charged with awarding a contract for public work may use the alternative
    49  delivery method referred to as design-build contracts; provided that any
    50  authorized entity may use the alternative delivery method referred to as
    51  design-build contracts for any public work that has an estimated cost of
    52  not  less  than  one million two hundred thousand dollars if such public
    53  work is otherwise in conformity with the requirements of  this  act  and
    54  primarily  consists  of:  pedestrian ramps and similar infrastructure to
    55  improve access to sidewalks for people with disabilities; renovation and
    56  construction of cultural institutions located  on  publicly  owned  real

        S. 8174                             3

     1  property  and of public libraries; or security infrastructure, including
     2  bollards, planters and other physical structures,  designed  to  protect
     3  life and property from acts of terror or mass violence.
     4    (a) A contractor selected by such an authorized entity to enter into a
     5  design-build  contract  shall  be selected through a two-step method, as
     6  follows:
     7    (1) Step one. Generation of a list of responding  entities  that  have
     8  demonstrated   the   general  capability  to  perform  the  design-build
     9  contract. Such list shall consist of a specified  number  of  responding
    10  entities,  as determined by an authorized entity, and shall be generated
    11  based upon the authorized entity's review of  responses  to  a  publicly
    12  advertised  request  for qualifications. The authorized entity's request
    13  for qualifications shall include a general  description  of  the  public
    14  work,  the  maximum  number of responding entities to be included on the
    15  list, the selection criteria to be used and the relative weight of  each
    16  criteria  in generating the list.  Such selection criteria shall include
    17  the qualifications and experience of the design and  construction  team,
    18  organization,  demonstrated  responsibility, ability of the team or of a
    19  member or members of the team to comply  with  applicable  requirements,
    20  including  the  provisions of articles 145, 147 and 148 of the education
    21  law, past record of compliance with the labor law, and such other quali-
    22  fications the authorized entity deems appropriate, which may include but
    23  are not limited  to  project  understanding,  financial  capability  and
    24  record  of  past  performance.  The authorized entity shall evaluate and
    25  rate all responding entities to the request for qualifications.    Based
    26  upon such ratings, the authorized entity shall list the responding enti-
    27  ties that shall receive a request for proposals in accordance with para-
    28  graph  two of this subdivision. To the extent consistent with applicable
    29  federal law, the authorized entity shall  consider,  when  awarding  any
    30  contract  pursuant  to this section, the participation of (i) responding
    31  entities that are certified as minority- or women-owned business  enter-
    32  prises pursuant to article 15-A of the executive law or certified pursu-
    33  ant  to  local law as minority- or women-owned business enterprises; and
    34  (ii) small business concerns identified pursuant to subdivision  (b)  of
    35  section  139-g  of  the  state finance law. In addition, nothing in this
    36  section shall be deemed to supersede any pre-qualification guidelines or
    37  requirements otherwise authorized by law for an authorized entity.
    38    (2) Step two. Selection of the proposal which is the best value to the
    39  authorized entity.   The authorized entity shall  issue  a  request  for
    40  proposals to the responding entities listed pursuant to paragraph one of
    41  this  subdivision.  If  such  a  responding entity consists of a team of
    42  separate entities, the entities that comprise such a  team  must  remain
    43  unchanged from the responding entity as listed pursuant to paragraph one
    44  of  this subdivision unless otherwise approved by the authorized entity.
    45  The request for proposals shall set forth the  public  work's  scope  of
    46  work,  and  other  requirements, as determined by the authorized entity,
    47  which may include separate goals for  work  under  the  contract  to  be
    48  performed  by  businesses certified as minority- or women-owned business
    49  enterprises pursuant to article 15-A of the  executive  law  or  section
    50  1743  of  the public authorities law, or certified pursuant to local law
    51  as minority-  or  women-owned  business  enterprises.  The  request  for
    52  proposals  shall  also  specify  the criteria to be used to evaluate the
    53  responses and the relative weight of each of such criteria. Such  crite-
    54  ria  shall  include  the  proposal's cost, the quality of the proposal's
    55  solution, the qualifications and experience of the proposer,  and  other
    56  factors  deemed  pertinent  by the authorized entity, which may include,

        S. 8174                             4

     1  but shall not be limited to,  the  proposal's  manner  and  schedule  of
     2  project implementation, the proposer's ability to complete the work in a
     3  timely  and  satisfactory  manner,  maintenance  costs  of the completed
     4  public  work, maintenance of traffic approach, and community impact. Any
     5  contract awarded pursuant to this act shall be awarded to  a  responsive
     6  and  responsible  proposer,  which,  in consideration of these and other
     7  specified criteria deemed pertinent, offers the best  value,  as  deter-
     8  mined  by the authorized entity. The request for proposals shall include
     9  a statement that proposers shall designate in writing those portions  of
    10  the proposal that contain trade secrets or other proprietary information
    11  that  are to remain confidential; that the material designated as confi-
    12  dential shall be readily separable from the proposal.  Nothing  in  this
    13  subdivision  shall  be  construed to prohibit the authorized entity from
    14  negotiating final contract terms  and  conditions  including  cost.  All
    15  proposals  submitted shall be scored according to the criteria listed in
    16  the request for proposals and such final scores shall  be  published  on
    17  the  authorized  entity's website after registration of such contract or
    18  the date upon which such contract may be  implemented,  if  registration
    19  requirements do not apply.
    20    (b)  An  authorized  entity  awarding  a  design-build  contract  to a
    21  contractor offering the best value may but shall not be required to  use
    22  the following types of contracts:
    23    (1)  A  cost-plus  not  to  exceed  guaranteed  maximum  price form of
    24  contract in which the authorized entity shall be entitled to monitor and
    25  audit all costs. In establishing the schedule and process for  determin-
    26  ing  a  guaranteed  maximum  price,  the contract between the authorized
    27  entity and the contractor shall:
    28    (i) Describe the scope of the work and the  cost  of  performing  such
    29  work,
    30    (ii) Include a detailed line item cost breakdown,
    31    (iii)  Include a list of all drawings, specifications and other infor-
    32  mation on which the guaranteed maximum price is based,
    33    (iv) Include the dates of substantial and final  completion  on  which
    34  the guaranteed maximum price is based, and
    35    (v) Include a schedule of unit prices; or
    36    (2) A lump sum contract in which the contractor agrees to accept a set
    37  dollar  amount  for  a  contract  which  comprises  a single bid without
    38  providing a cost breakdown for all costs such as for  equipment,  labor,
    39  materials,  as well as such contractor's profit for completing all items
    40  of work comprising the public work.
    41    § 5. Any contract entered into pursuant to this act  shall  include  a
    42  clause  requiring  that  any professional services regulated by articles
    43  145, 147 and 148 of the education law shall be performed and stamped and
    44  sealed, where appropriate, by a professional licensed in accordance with
    45  the appropriate article.
    46    § 6. Construction with respect to each contract  entered  into  by  an
    47  authorized  entity  pursuant to this act shall be deemed a "public work"
    48  to be performed in accordance with the provisions of article  8  of  the
    49  labor  law, as well as subject to sections 200, 240, 241 and 242 of such
    50  law and enforcement of prevailing wage requirements pursuant to applica-
    51  ble law or, for projects or public works receiving federal aid, applica-
    52  ble federal requirements for prevailing wage. Any contract entered  into
    53  pursuant  to  this  act  shall  include  a clause requiring the selected
    54  design builder to obligate every  tier  of  contractor  working  on  the
    55  public  work  to  comply  with the project labor agreement referenced in
    56  section three of this act, and shall  include  project  labor  agreement

        S. 8174                             5

     1  compliance  monitoring  and  enforcement  provisions consistent with the
     2  applicable project labor agreement.
     3    §  7.  Each  contract entered into by an authorized entity pursuant to
     4  this act shall comply with the objectives  and  goals  relating  to  the
     5  performance  of design and construction services by minority- and women-
     6  owned business enterprises, or, for projects or public  works  receiving
     7  federal  aid, applicable federal requirements for disadvantaged business
     8  enterprises or minority- and women-owned business enterprises.
     9    § 8. Public works undertaken by an authorized entity pursuant to  this
    10  act  shall  be  subject to the requirements of article 8 of the environ-
    11  mental conservation law, and, where applicable, the requirements of  the
    12  National Environmental Policy Act.
    13    §  9.  (a)  Notwithstanding  any provision of law to the contrary, all
    14  rights or benefits, including terms and conditions  of  employment,  and
    15  protection  of  civil  service  and  collective bargaining status of all
    16  employees of authorized entities solely in connection with  public  work
    17  undertaken  by  an  authorized  entity  pursuant  to  this act, shall be
    18  preserved and protected.
    19    (b) Nothing in this act shall result in the: (1) displacement  of  any
    20  currently  employed  worker  or  loss  of  position  (including  partial
    21  displacement such as a reduction in  the  hours  of  non-overtime  work,
    22  wages  or  employment benefits), or result in the impairment of existing
    23  collective bargaining agreements; and (2) transfer  of  existing  duties
    24  and  functions related to maintenance and operations currently performed
    25  by existing employees of authorized entities to a contractor.
    26    (c) Employees of  authorized  entities  using  design-build  contracts
    27  serving  in  positions  in newly created titles shall be assigned to the
    28  appropriate bargaining unit. Nothing contained  in  this  act  shall  be
    29  construed  to  affect (1) the existing rights of employees of such enti-
    30  ties pursuant to an existing collective bargaining  agreement,  (2)  the
    31  existing  representational  relationships  among  employee organizations
    32  representing employees of such entities, or (3) the bargaining relation-
    33  ships between such entities and such employee organizations.
    34    (d)  Without  limiting  contractors'  obligations  under  design-build
    35  contracts  to  issue  their  own  initial  certifications of substantial
    36  completion and final completion, public employees of authorized entities
    37  shall review and determine whether the work performed by contractors  is
    38  acceptable  and  has  been  performed  in accordance with the applicable
    39  design-build contracts, and if such public employees so determine,  such
    40  public   employees   shall  accept  contractors'  substantial  or  final
    41  completion of the public works as applicable. Performance by  authorized
    42  entities  of  any  review  described  in  this  subdivision shall not be
    43  construed to modify or limit contractors'  obligations  to  perform  the
    44  work  in strict accordance with the applicable design-build contracts or
    45  the contractors' or any subcontractors' obligations or liabilities under
    46  any law.
    47    § 10. The submission of a proposal or responses or the execution of  a
    48  design-build  contract pursuant to this act shall not be construed to be
    49  a violation of section 6512 of the education law.
    50    § 11. Nothing contained in this act shall limit  the  right  or  obli-
    51  gation  of  any  authorized  entity to comply with the provisions of any
    52  existing contract or to award contracts as otherwise provided by law.
    53    § 12. A report shall be submitted no later  than  June  30,  2024  and
    54  annually  thereafter,  to  the  governor, the temporary president of the
    55  senate and the  speaker  of  the  assembly  by  each  authorized  entity
    56  containing  information regarding each design-build contract procured by

        S. 8174                             6

     1  such authorized entity pursuant to this act. Such report shall include a
     2  description of each such design-build  contract,  information  regarding
     3  the  procurement  process  for each such design-build contract including
     4  the list of responding entities that demonstrated the general capability
     5  to perform the design-build contract pursuant to paragraph (1) of subdi-
     6  vision  (a)  of section four of this act, the total cost of each design-
     7  build contract, an explanation of the estimated savings  resulting  from
     8  the  design-build method, and the participation rate of and total dollar
     9  value of monies paid to minority- and women-owned  business  enterprises
    10  under such design-build contract.
    11    §  13.  This act shall take effect immediately and shall expire and be
    12  deemed repealed three years after such date, provided that, public works
    13  with requests for qualifications issued prior to such  repeal  shall  be
    14  permitted to continue under this act notwithstanding such repeal.
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