Creates the Metropolitan Transit Authority Small Business mentoring program; repealer

1. Establish a small business mentoring program for businesses which have been certified by the Small Business Administration and meet other criteria established by the authority;

2. Provide small businesses accepted into the program with the opportunity, for up to four years, to obtain the expertise and assistance of authority-provided experience mentor firms to enable them to compete for and perform authority public work contracts. Such small businesses will also have the opportunity to compete with other designated small businesses in the mentor program for certain public work contracts designated for inclusion in the program;

3. Competitively select, designate and contract with one or more experienced constriction management firms that will provide mentoring services to the small businesses participating in the small business mentoring program and to assign such mentors to those small businesses in the program;

4. For small business mentoring program contracts, waive the requirements for the solicitation and award of public work contacts set forth in other provisions of the public authorities law, and for a performance, payment or other guarantee bond, as set forth in the state finance law, or which prohibit the authority from designating an insurance company or obtaining insurance for a contractor, as set forth in the state insurance law;

5. For small businesses which have successfully completed the small business mentoring program, for up to an additional four years, waive the requirements for the solicitation and award of public work contracts set forth in other provisions of the public authorities law, for specified contacts not to exceed two million dollars;

6. For small businesses which have successfully completed the small business mentoring program, for up to an additional four years, provide assistance, including authority guarantees, in obtaining bid, payment and performance bonding for public work contracts; and

7. Engage mentoring firms to provide small businesses which have been awarded authority contracts guidance, advice and assistance in the performance of the contracts.

Justification

The goal of the program is to develop business capabilities of small construction firms, so that they become capable of successfully competing for and completing larger projects, ultimately widening the prospective pool of construction firms competing for authority public work projects. The program is designed to allow the protege firms to grow their businesses by starting on small construction projects that are within their financial and technical capabilities and to provide them with the training and guidance they need to develop the skills required to handle larger projects, either as contractors or as subcontractors, At the same time, the program must ensure that the projects are completed on time and at a fair and reasonable construction.

The purpose of this mentoring program is to provide small businesses with the mentoring services of experienced construction firms. These mentor firms will: provide business training to the small businesses in the program in the skills necessary to operate a successful construction business and to compete for and to perform a public work contract; provide assistance to the small businesses to asses the outcome if a small business competes for but is not awarded a contract; and provide guidance, advice and assistance to the small businesses in the performance of the contract. The bill also allows the authority to waive contract public bidding requirements for contracts which have been designated for the small business mentoring program, and it authorizes the authority to waive bonding and insurance requirements which have traditionally been impediments to small businesses.

This program is in the public interest as it will encourage small businesses to bid for public work and to provide them with guidance and advice in the performance of that work after award, The program will ultimately increase competition for public work contracts, as it will provide an atmosphere in which increasing numbers of small businesses succeed in bidding for and performing such work.

Prior legislative history

S.5987 of 2009 06/19/09 Referred to Rules 07/15/09 Ordered to Third Reading CAL.874 07/16/09 Substituted By A.8681 A.08681 Wright (MS) AMEND=A 06/03/09 Referred to Corporations, Authorities and Commissions 06/16/09 Reported Referred to Ways and Means 06/18/09 Referred to Rules 07/16/09 Substituted for S.5987 07/16/09 3RD Reading Calendar 74 07/16/09 Recommitted to Rules 01/06/10 Died in Senate 01/06/10 Returned to Assembly 01/06/10 Ordered to Third Reading Calendar 618 03/15/10 Amended on Third Reading 8681A 01/06/10 Referred to Transportation 01/14/10 Committee Discharged and Committed to Corporations, Authorities and Commissions 03/01/10 Amend and Recommit to Corporations, Authorities and Commissions 03/01/10 Print Number 5987A

Fiscal implications

To be determined

Effective date

This Act shall take effect immediately shall expire December 31, 2019 when upon such date the provision of this Act shall be deemed repealed; provided that such expiration shall not apply to pending and awarded public work contacts.