Bill Text: NY S05600 | 2017-2018 | General Assembly | Introduced
Bill Title: Authorizes 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 (Republican 2-1)
Status: (Vetoed) 2017-12-18 - VETOED MEMO.228 [S05600 Detail]
Download: New_York-2017-S05600-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5600 2017-2018 Regular Sessions IN SENATE April 19, 2017 ___________ Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Author- ities 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 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 is required to encourage professional firms 14 engaged in the lawful practice of the profession to submit an annual 15 statement of qualifications and performance data. The corporation for 16 each proposed project is required to evaluate current statements of 17 qualifications and performance data on file with the corporation. If 18 desired, the corporation may conduct discussions with three or more 19 professional firms regarding anticipated design concepts and proposed 20 methods of approach to the assignment. The corporation is required to 21 select, in order of preference, based upon criteria established by the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07014-01-7S. 5600 2 1 corporation, no less than three professional firms deemed to be the most 2 highly qualified to provide the services required. 3 Every corporation is required to negotiate a contract with the highest 4 qualified professional firm for architectural and/or engineering 5 services and/or surveying services at compensation which the corporation 6 determines in writing to be fair and reasonable to such corporation. In 7 making this decision, the corporation is required to take into account 8 the estimated value of the services to be rendered, including the costs, 9 the scope, complexity and professional nature thereof. 10 The corporation shall not refuse to negotiate with a professional firm 11 solely because the ratio of the "allowable indirect costs" to direct 12 labor costs of the professional firm or the hourly labor rate in any 13 labor category of the professional firm exceeds a limitation generally 14 set by the corporation in the determination of the reasonableness of the 15 estimated cost of services to be rendered by the professional firm, but 16 rather the corporation should also consider the reasonableness of cost 17 based on the total estimated cost of the service of the professional 18 firm which should include, among other things, all the direct labor 19 costs of the professional firm for such services plus all "allowable 20 indirect costs," other direct costs, and negotiated profit of the 21 professional firm. "Allowable indirect costs" of a professional firm are 22 defined as those costs generally associated with overhead which cannot 23 be specifically identified with a single project or contract and are 24 considered reasonable and allowable under specific state contract or 25 allowability limits. Should the corporation choose to engage in a qual- 26 ification based procurement and be unable to negotiate a satisfactory 27 contract with the professional firm considered to be the most qualified, 28 at a fee the corporation determines to be fair and reasonable to the 29 corporation, negotiations with that professional firm shall be formally 30 terminated. The corporation shall then undertake negotiations with the 31 second most qualified professional firm. Failing accord with the second 32 most qualified professional firm, the corporation shall formally termi- 33 nate negotiations. The corporation shall then undertake negotiations 34 with the third most qualified professional firm. Should the corporation 35 be unable to negotiate a satisfactory contract with any of the selected 36 professional firms, it shall select additional professional firms in 37 order of their competence and qualifications and it shall continue nego- 38 tiations in accordance with this section until an agreement is reached. 39 The provisions of this subparagraph shall only apply to engineering 40 and/or architectural services and/or surveying services in excess of 41 twenty-five thousand dollars and shall not apply to the metropolitan 42 transportation authority, the New York city transit authority or the 43 Triborough bridge and tunnel authority or to any of their subsidiaries. 44 § 2. This act shall take effect immediately.
