Amends section 3 of chapter 674 of the laws of 1993, relating to the value limitations on contracts; extends the effectiveness thereof

BILL NUMBER:A8315

Title of bill

An act to amend chapter 674 of the laws of 1993, amend- ing the public buildings law relating to value limitations on contracts, in relation to extending the effectiveness thereof

Purpose

This proposal provides for a two year extension of the State's authori- ty, which is due to expire on June 30, 2009, to enter into construction contracts without formal competitive bidding in certain emergencies.

Summary of provisions

Section 1 of the bill would amend Chapter 674 of the laws of 1993, as amended by Chapter 116 of the laws of 1995, Chapter 195 of the laws of 1997, Chapter 117 of the laws of 1999, Chapter 73 of the laws of 2001, Chapter 94 of the laws of 2003, Chapter 56 of the laws of 2005 and Chap- ter 84 of the laws of 2007, to provide for a two year extension through June 30, 2011 authorizing the State to enter into certain emergency construction contracts without formal competitive bidding.

Existing law

Since 1993, Public Buildings Law § 9 has authorized the Commissioner of General Services to let contracts in value not exceeding $200,000 (increased to $300,000 in 2007) to respond to construction emergencies involving a pressing necessity for immediate repair, reconstruction or maintenance to protect persons or property and to permit safe continua- tion of a public use or function.

Legislative history

Public Buildings Law § 9, enacted in 1983, authorized the Commissioner of General Services to address construction emergencies without strict compliance with formal competitive bidding requirements subject to a value limitation of $40,000. In 1993, section 9 was amended to increase the value limitation from $40,000 to $200,000 subject to a two year sunset provision, which extension has been enacted every two years since 1993. In 2007, the authority was again extended and the valuation increased from $200,000 to $300,000.

Statement in support

The emergency contracting authority added in 1993 was intended to enable immediate attention to a large variety of building and facility damages inflicted by fire, explosion or other casualty, equipment failure and like exigencies and breakdowns which occur on State properties. Such construction emergencies frequently create a direct threat to the health, safety and lives of State employees, institutional clients and members of the public. Absent authorization of expeditious contracting

for repair and remedial work, disrupting malfunctions would remain unad- dressed for weeks pending the statutorily mandated formal contracting processes for State construction work. Under the current system, the State is able to immediately act to meet emergencies. Such contracts may be let without formal competitive bidding but are mandated to be based on the solicitation of at least three oral competitive bids and must be approved by the Attorney General and the State Comptroller.

The adoption of this amendment will permit both the adherence to the full, formal construction contracting method to the maximum practicable extent and the reduction of the State's losses from emergencies which demand use of expedited emergency contracting.

Budget implications

Extension of the sunset provision on the value limitation for necessary emergency construction contracting will preclude potentially large loss- es in additional repair and restoration costs for damaged State facili- ties. It will also lessen the effect of discontinuance of state programs in emergencies, and will limit further injuries, casualties and malfunc- tions and consequent claims against the State. There is no fiscal support needed to implement the provisions of this bill.

Effective date

This act shall take effect immediately.