Bill Text: NY S06770 | 2021-2022 | General Assembly | Introduced


Bill Title: Specifies a time frame for the award of contracts with costs exceeding five hundred thousand dollars; grants authority to the general manager of the authority to designate certain contracts as small business set-asides; establishes procedures related thereto.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S06770 Detail]

Download: New_York-2021-S06770-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6770

                               2021-2022 Regular Sessions

                    IN SENATE

                                      May 14, 2021
                                       ___________

        Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions

        AN  ACT  to  amend  the  public  authorities law, in relation to certain
          contracts for the Buffalo Sewer Authority

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 1181 of the public authorities law, as amended by
     2  chapter 665 of the laws of 1987, is amended to read as follows:
     3    § 1181. Construction contracts. If the project, or any portion  there-
     4  of, or any addition, betterment or extension to the facilities, shall be
     5  constructed  pursuant to a contract for which the estimated cost exceeds
     6  [seven] five hundred thousand dollars prior to the date when work  under
     7  the  authority's  long  term  control  plan is completed, or, after such
     8  date, the amount provided for expenditures of public work in subdivision
     9  one of section one hundred three of  the  general  municipal  law,  such
    10  contract  shall be awarded to the lowest responsible bidder after adver-
    11  tisement for bids. The board may make  rules  and  regulations  for  the
    12  submission  of  bids and the construction of the project or such portion
    13  thereof or such addition, betterment, or extension. No contract shall be
    14  entered into for construction of the project or any portion  thereof  or
    15  any  addition,  betterment  or  extension  to the facilities, or for the
    16  purchase of materials, unless the contractor shall give  an  undertaking
    17  with a sufficient surety or sureties approved by the authority and in an
    18  amount  fixed  by  the  authority,  for  the faithful performance of the
    19  contract. As to contracts entered into for construction, such  undertak-
    20  ing  shall  provide,  among other things, that the person or corporation
    21  entering into such contract with the authority, will pay for all materi-
    22  als furnished and services rendered for the performance of the  contract
    23  and  that any person or corporation furnishing such materials or render-
    24  ing such services may maintain an action to recover for the same against

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10705-01-1

        S. 6770                             2

     1  the obligor in the undertaking as though such person or corporation  was
     2  named  therein, provided the action is brought within one year after the
     3  time the cause of action accrued.  Nothing  in  this  section  shall  be
     4  construed  to  limit the power of the authority to construct the project
     5  or any portion thereof or any addition, betterment or extension  to  the
     6  facilities  directly  by  the  officers,  agents,  and  employees of the
     7  authority or otherwise than by contract.    The  authority  may  proceed
     8  jointly  with  the  state of New York in the construction of any highway
     9  which also includes sewage and storm water facilities and  by  agreement
    10  with  the  state  of  New  York fix and determine the amount which shall
    11  constitute the contribution by the authority  toward  the  cost  of  the
    12  construction  by  the state of New York of such facilities in connection
    13  with the construction or improvement of any highway. The portion of  the
    14  cost to be paid by the authority shall be deposited with the state comp-
    15  troller,  who  is  authorized  to  receive  and  accept  the  same. Upon
    16  completion of any project authorized by this section the commissioner of
    17  transportation shall render to the authority an itemized statement show-
    18  ing in full (a) the amount of money deposited as hereinbefore  provided,
    19  and  (b)  all  disbursements  made pursuant to this section. Any surplus
    20  money shall be paid to such authority on the warrant of the  comptroller
    21  on vouchers therefore approved by the commissioner of transportation.
    22    §  2.  The  public  authorities law is amended by adding a new section
    23  1181-a to read as follows:
    24    § 1181-a. Small business set-aside contracts for the  authority.    1.
    25  Definitions. As used in this section, unless a different meaning clearly
    26  appears from the context:
    27    (a)  "Minority  business  concern" shall mean a business enterprise in
    28  which at least fifty-one percent is owned  by  persons  who  are  Native
    29  American  or  Alaskan native, Asian American, Black or African-American,
    30  Hispanic or Latino, or Native Hawaiian or Pacific Islander.
    31    (b) "Small business" shall mean a business that is independently owned
    32  and operated, and which is not dominant in the field of  operation.  The
    33  authority shall establish a detailed definition by resolution adopted at
    34  a public meeting based on factors such as limits in number of employees,
    35  annual revenues, and/or personal net worth of owners.
    36    (c) "Small business set-aside" shall mean a request for which bids are
    37  to  be  invited  and  accepted only from small businesses by the general
    38  manager.
    39    2. The general manager has the authority to designate as  small  busi-
    40  ness   set-asides   specified  contracts  for  purchases,  services,  or
    41  construction. The designation shall be made prior to  the  advertisement
    42  for  bids as provided by law, and when the advertisement is published it
    43  shall indicate the purchases or work that have been designated as  small
    44  business  set-asides.  To  effectuate  the purposes of this section, the
    45  general manager may exercise this authority whenever there is a  reason-
    46  able  expectation  that  bids will be obtained from at least three small
    47  businesses capable of furnishing the desired property or  service  at  a
    48  fair and reasonable price.
    49    3.  In  the case of contracts designated as small business set-asides,
    50  invitations to bid shall be confined to small businesses and  bids  from
    51  other  businesses  shall be rejected. The purchase, contract or expendi-
    52  ture of funds shall be awarded to the lowest  responsible  bidder  among
    53  the  small  businesses,  considering  conformity with specifications and
    54  terms, in accordance with the authority's purchasing guidelines.
    55    4. A portion of small business set-asides shall be set aside  in  turn
    56  as  exclusively  as possible, to small businesses owned or controlled by

        S. 6770                             3

     1  minority business concerns, and such  businesses  shall  constitute  not
     2  less  than  twenty-five  percent  of  the  successful bidders under this
     3  title.
     4    5.  If  the total number of small businesses responding to the invita-
     5  tion to bid and considered capable of  meeting  the  specifications  and
     6  terms  of  the  invitation  to bid is less than three, or if the general
     7  manager determines that acceptance of the best bid will  result  in  the
     8  payment  of  an unreasonable price, the general manager shall reject all
     9  bids and withdraw the designation of small business set-aside.
    10    6. If the general manager withdraws the designation of small  business
    11  set-aside,  the authority shall notify the bidders of the reason why the
    12  bids were rejected. Invitations to bid containing the same or  rewritten
    13  specifications and terms shall then be re-issued without the designation
    14  of small business set-aside.
    15    § 3. This act shall take effect immediately.
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