Relates to purchasing through the office of general services

1 Co-sponsor

• Suzi Oppenheimer

BILL NUMBER:S4133A

Title of bill

An act to amend the general municipal law and the county law, in relation to purchases through the office of general services

Purpose

To provide localities flexibility in procurement for goods and services.

Summary of provisions

Section 1. Allows localities, upon resolution from their respective legislative bodies, to authorize procurement bids to be submitted in electronic format.

Section 2. Removes the prohibition for localities to enter into contracts for services including labor.

Section 3. Allows localities to piggyback onto any state or local contract, or federal information technology contract, provided they conform with wage and competitive bidding requirements. Requires locality to assert such conformity through a legislative resolution.

Section 4. Allows localities to piggyback onto federal information technology and law enforcement equipment contracts.

Section 5. Provides counties flexibility in piggybacking on other localities' services.

Section G. Enacting clause. To be effective immediately.

Justification

In this difficult time of shrinking revenues and growing deficits, local governments across New York must have the flexibility to realize savings through shared contracts and services. By working together, as well as with state and federal agencies, local governments can earn better rates on goods, services and technology than by working alone.

Currently, any locality working to streamline their procurement process faces a number of roadblocks. State and federal agency contracts, whose high-volume purchasing earns better rates than any locality can hope to achieve, are often off-limits. Services including labor also pose a serious problem to any government seeking purchasing "power in numbers." New York is also one of the only two states to forbid its local governments from utilizing federal Government services Administration contracts. And localities must carry out a time and labor-intensive procurement process for any purchase over a certain threshold ($10.000 for commodities and $20,000 for public works), no matter how routine such purchases may be.

With this legislation, local governments will be able to easily achieve "economies of scale" savings, as well to harness the ability to secure goods and services that a nearby town or county may already be on contract for. They will be also be able to use an electronic

bid format to cut some of the indirect costs associated with the bidding process.

Most importantly, this bill does not mandate any procurement process, nor does it forego the critical vetting to ensure that contracts all are awarded competitively and conform to state labor and wage requirements. Instead, it adds another set of tools for local governments to utilize to achieve savings on behalf of their taxpayers. By cutting their procurement expenses, local governments may be able to forego the need to raise taxes or cut vital services. In today's world, these are tools we can no longer afford to deny our local governments.

Legislative history

New Bill.

Fiscal implications

None to the state. Possible economies-of-scale savings through joint purchases with localities.

Local fiscal implications

Significant savings through economies-of-scale purchases and more flexible procurement procedures.

Effective date

This act shall take effect immediately, with provisions.