Relates to the value limitations on contract and extending the effectiveness thereof

BILL NUMBER:S4309

Title of bill

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

Purpose of the Bill:

This bill would extend until June 30, 2015 the authority of the Office of General Services (OGS) to enter into construction contracts without formal competitive bidding in certain emergencies OGS's authority is due to expire on June 30, 2013.

Summary of Provisions:

Section 1 of the bill would extend for two years the authority of OGS to enter into certain emergency construction contracts without formal competitive bidding. This authority was originally granted by chapter 674 of the laws of 1993 and was to sunset in 1995. Since then, the sunset provision has been amended by two-year extenders.

Existing Law:

Since 1993, the Public Buildings Law (PBL) § 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 continuation of a public use or function. Such contracts may be let without formal competitive bidding but arc 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.

Prior Legislative History:

In 1993, PBL § 9 was amended to increase the value limitation from $40,000 to $200,000 subject to a two-year sunset provision. The sunset has previously been extended by two-year extenders enacted by Chapter 674 of the Laws of 1993, Chapter 56 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, Chapter 84 of the Laws of 2007 (which also increased the value limitation from $200,000 to $300.000), Chapter 163 of the Laws of 2009, and Chapter 99 of the Laws 0f 2011.

Statement in Support:

The emergency contracting authority allows the State to quickly repair damage sustained by buildings and facilities as a result of fire, explosion or other casualty, equipment failure and breakdowns that occur on State properties Absent authorization for prompt contracting for repair and remedial work, disruptive malfunctions would remain unaddressed for weeks pending compliance with the statutorily mandated formal contracting processes for State construction work Under the current system, the State is able to immediately act to meet such emergencies.

Recent natural disaster events only emphasize how invaluable this emergency contracting author it can be in quickly restoring State buildings and facilities. Continuing such authority will permit adherence to both the full and formal construction contracting method to the maximum practicable extent, and the reduction of the State's losses from emergencies that demand use of expedited emergency contracting.

Budget Implications:

Extending the sunset provision on the value limitation for necessary emergency construction contracting will preclude potentially large losses in additional repair and restoration costs for damaged State facilities. It will also lessen the effect of discontinuance of state programs in emergencies, and will permit avoidance of further injuries, casualties and malfunctions and consequent claims against the State There is no fiscal support needed to implement the provisions of this bill.

Local Impact:

None

Effective Date:

This act shall take effect immediately.