Relates to awards of certain contracts to small businesses or businesses certified under article 15-A of the executive law

1 Co-sponsor

• Ruth Hassell-Thompson

BILL NUMBER:S7960

Title of bill

An act to amend the public authorities law, in relation to the award of certain contracts to small businesses and/or businesses certified under article 15-A of the executive law; and providing for the repeal of such provisions upon expiration thereof

Purpose

To amend the Public Authorities Law in relation to expanded opportunities for minority, women-owned and small business enterprises.

Summary of provisions

This bill amends the Public Authorities Law to authorize the Dormitory Authority of the State of New York (DASNY) to create a pilot program that would increase minority, women-owned and small business participation in the State's and Authority's procurement process. Specifically, this bill would: establish a short-term pilot project that permits competitive bidding of contracts for goods and services, including construction services by small and/or minority and women-owned businesses; provide for the evaluation of amounts paid under the pilot program compared with amounts awarded under other non-pilot contracts for the same goods or services; and, require an annual assessment of the effectiveness of these procedures in helping meet goals established pursuant to Executive Law Article 15-A.

Justification

New York State agencies and public authorities are responsible for ensuring compliance with various statutes, executive orders and regulations which purpose is to expand opportunities for minority, women-owned and small businesses that may have been previously excluded or substantially underutilized in the State's procurements. A 2010 disparity study commissioned by ESDC found that M/WBE utilization in the State Procurement process was 5.03% nearly 1/6th of what it should be, yielding a Disparity Ratio of 17.40, given the availability of those enterprises in the marketplace. The underutilization of small and minority and women-owned businesses in the State's contracting opportunities can be attributed, in part, to a distinct absence of actual work experience. The State often finds this a daunting challenge, which grows particularly more difficult in this era of economic uncertainty. In an effort to help State agencies/public authorities to meet their policy goals, the legislature successfully negotiated the enactment of legislation that took a major first step by creating a statewide mentor-protegee program.

The legislature continues to explore ways to assist State agencies and public authorities in their efforts and with a view toward more immediate participation, through this legislation, takes an important next step. Through this pilot project, minority, women and small businesses will be able to successfully compete for State

procurements as instructed by authority procurement guidelines. As a result of guidelines that are authority-specific and meet unique procurement requirements of the authority, participating small and minority-owned businesses can gain experience that will be needed for them to more effectively compete in the marketplace.

Existing law

Sections 1696-1699 of the Public Authorities Law permit the designation of purchases and contracts for construction and services in certain instances, to be bid by minority and small business concerns.

Legislative history

New Bill.

Fiscal implications

None, the pilot program is limited to the utilization of existing authority assets and is capped at those levels.

Effective date

This act shall take effect immediately and shall expire July 1, 2015 when upon such date the provisions of this act shall be deemed repealed.