Bill Text: NY A06814 | 2011-2012 | General Assembly | Amended


Bill Title: Requires public authorities and public benefit corporations to negotiate with professional firms providing architectural or engineering services in order from the most qualified to the least qualified with regard to the provision of services to the authority or corporation.

Spectrum: Slight Partisan Bill (Democrat 5-3)

Status: (Introduced - Dead) 2012-01-04 - referred to corporations, authorities and commissions [A06814 Detail]

Download: New_York-2011-A06814-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6814--A
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 31, 2011
                                      ___________
       Introduced by M. of A. BENEDETTO, P. RIVERA -- read once and referred to
         the  Committee on Corporations, Authorities and Commissions -- commit-
         tee discharged, bill amended, ordered reprinted as amended and  recom-
         mitted to said committee
       AN  ACT  to  amend  the public authorities law, in relation to requiring
         public authorities and public benefits corporations to negotiate  with
         professional  firms providing architectural or engineering 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 AND/OR ENGINEERING SERVICES AND/OR SURVEYING  SERVICES  ON  THE
   10  BASIS  OF  DEMONSTRATED  COMPETENCE  AND  QUALIFICATION  FOR THE TYPE OF
   11  PROFESSIONAL SERVICES REQUIRED AND AT FAIR AND REASONABLE FEES.
   12    IN  THE  PROCUREMENT  OF  ARCHITECTURAL,  ENGINEERING  AND   SURVEYING
   13  SERVICES,  THE CORPORATION SHALL ENCOURAGE PROFESSIONAL FIRMS ENGAGED IN
   14  THE LAWFUL PRACTICE OF THE PROFESSION TO SUBMIT AN ANNUAL  STATEMENT  OF
   15  QUALIFICATIONS  AND  PERFORMANCE DATA. THE CORPORATION FOR EACH PROPOSED
   16  PROJECT SHALL EVALUATE CURRENT STATEMENTS OF QUALIFICATIONS AND PERFORM-
   17  ANCE DATA ON FILE WITH THE CORPORATION.  IF DESIRED, THE CORPORATION MAY
   18  CONDUCT DISCUSSIONS WITH THREE  OR  MORE  PROFESSIONAL  FIRMS  REGARDING
   19  ANTICIPATED  DESIGN  CONCEPTS  AND  PROPOSED  METHODS OF APPROACH TO THE
   20  ASSIGNMENT. THE CORPORATION SHALL SELECT, IN ORDER OF PREFERENCE,  BASED
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02927-02-1
       A. 6814--A                          2
    1  UPON CRITERIA ESTABLISHED BY THE CORPORATION, NO LESS THAN THREE PROFES-
    2  SIONAL  FIRMS  DEEMED  TO  BE  THE  MOST HIGHLY QUALIFIED TO PROVIDE THE
    3  SERVICES REQUIRED.
    4    EVERY  CORPORATION  SHALL NEGOTIATE A CONTRACT WITH THE HIGHEST QUALI-
    5  FIED PROFESSIONAL FIRM FOR  ARCHITECTURAL  AND/OR  ENGINEERING  SERVICES
    6  AND/OR  SURVEYING  SERVICES AT COMPENSATION WHICH THE CORPORATION DETER-
    7  MINES IN WRITING TO BE FAIR  AND  REASONABLE  TO  SUCH  CORPORATION.  IN
    8  MAKING  THIS DECISION, THE CORPORATION SHALL TAKE INTO ACCOUNT THE ESTI-
    9  MATED VALUE OF THE SERVICES TO BE RENDERED,  INCLUDING  THE  COSTS,  THE
   10  SCOPE, COMPLEXITY AND PROFESSIONAL NATURE THEREOF.
   11    The corporation shall not refuse to negotiate with a professional firm
   12  solely  because  the  ratio  of the "allowable indirect costs" to direct
   13  labor costs of the professional firm or the hourly  labor  rate  in  any
   14  labor  category  of the professional firm exceeds a limitation generally
   15  set by the corporation in the determination of the reasonableness of the
   16  estimated cost of services to be rendered by the professional firm,  but
   17  rather  the  corporation should also consider the reasonableness of cost
   18  based on the total estimated cost of the  service  of  the  professional
   19  firm  which  should  include,  among  other things, all the direct labor
   20  costs of the professional firm for such  services  plus  all  "allowable
   21  indirect  costs,"  other  direct  costs,  and  negotiated  profit of the
   22  professional firm. "Allowable indirect costs" of a professional firm are
   23  defined as those costs generally associated with overhead  which  cannot
   24  be  specifically  identified  with  a single project or contract and are
   25  considered reasonable and allowable under  specific  state  contract  or
   26  allowability  limits.    SHOULD THE CORPORATION BE UNABLE TO NEGOTIATE A
   27  SATISFACTORY CONTRACT WITH THE PROFESSIONAL FIRM CONSIDERED  TO  BE  THE
   28  MOST  QUALIFIED,  AT  A  FEE  THE  CORPORATION DETERMINES TO BE FAIR AND
   29  REASONABLE TO THE CORPORATION, NEGOTIATIONS WITH THAT PROFESSIONAL  FIRM
   30  SHALL  BE  FORMALLY  TERMINATED.    THE CORPORATION SHALL THEN UNDERTAKE
   31  NEGOTIATIONS WITH THE SECOND MOST QUALIFIED PROFESSIONAL  FIRM.  FAILING
   32  ACCORD WITH THE SECOND MOST QUALIFIED PROFESSIONAL FIRM, THE CORPORATION
   33  SHALL FORMALLY TERMINATE NEGOTIATIONS. THE CORPORATION SHALL THEN UNDER-
   34  TAKE  NEGOTIATIONS  WITH  THE  THIRD  MOST  QUALIFIED PROFESSIONAL FIRM.
   35  SHOULD THE CORPORATION BE UNABLE TO NEGOTIATE  A  SATISFACTORY  CONTRACT
   36  WITH  ANY OF THE SELECTED PROFESSIONAL FIRMS, IT SHALL SELECT ADDITIONAL
   37  PROFESSIONAL FIRMS IN ORDER OF THEIR COMPETENCE AND  QUALIFICATIONS  AND
   38  IT  SHALL CONTINUE NEGOTIATIONS IN ACCORDANCE WITH THIS SECTION UNTIL AN
   39  AGREEMENT IS REACHED.  THE PROVISIONS OF THIS  SUBPARAGRAPH  SHALL  ONLY
   40  APPLY  TO  ENGINEERING  AND/OR  ARCHITECTURAL  SERVICES AND/OR SURVEYING
   41  SERVICES IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS AND SHALL  NOT  APPLY
   42  TO  THE METROPOLITAN TRANSPORTATION AUTHORITY, THE NEW YORK CITY TRANSIT
   43  AUTHORITY OR THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY  OR  TO  ANY  OF
   44  THEIR SUBSIDIARIES.
   45    S 2. This act shall take effect immediately.
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