Authorizes commissioners and state agencies to develop alternative procurement methods not otherwise authorized by law under certain circumstances

Summary of provisions

Section 1 of this bill amends Paragraph a of Subdivision 2 of Section 112 of the State Finance Law to require State Comptroller approval of OGS centralized contracts when such contracts are awarded using an alternative method of procurement pursuant to subdivision 15 of section 163 as added by section 2 of this bill

Section 2 of this bill adds a new Subdivision 15 to Section 163 of the State Finance Law to provide for alternative procurement methods if the Commissioner of General Services (Commissioner) or a state agency determines that it is in the best interest of the state to develop an alternative procurement method not authorized by Article 11 of the State Finance Law for goods, services or technology. The bill also authorizes the Commissioner or state agency to develop and use such method for a specific contract award. Additionally, the bill requires that such determination be made in writing and include documentation for the procurement record that such alternative procurement method would serve the interest of the state better than other methods currently available under section 163 of the State Finance Law, can be applied on a competitive, fair and equitable basis, and contains an appropriate evaluation methodology that considers both cost and qualitative evaluation factors.

The bill provides that the Commissioner or a state agency may not undertake an alternative procurement method until the State Comptroller has determined that the proposed alternative procurement method is in the best interest of the state, can be applied on a competitive, fair and equitable basis, and utilizes an appropriate evaluation methodology that considers both cost and qualitative evaluation factors.

The bill requires the Commissioner or agency to include in its solicitation document a detailed description of the proposed method of award. In advance of the initial receipt of offers, the Commissioner or state agency shall determine and document in the procurement record the evaluation criteria and process to be used in the determination of the specific contract award and the process by which the evaluation and selection shall be conducted. This bill provides that before any contract awarded under an alternative procurement which exceeds fifty thousand dollars in amount becomes effective it must be approved by the State Comptroller and filed in his or her office.

This bill requires that for each alternative procurement awarded, the Commissioner or state agency shall submit to the Governor, the State Comptroller and the heads of the fiscal committees of each house of the State Legislature no later than the mid- point of the initial term of the resultant contract a report assessing the validity of the alternative procurement method and comparing its results to standard procurement methods for goods, services or technology.

This bill requires the Commissioner to prepare a report on the savings achieved from all contracts established as a centralized contract through the Office of General Services pursuant to section 163 of the State Finance Law, the impact of such contracts on small, minority and women-owned business enterprises, and the effectiveness of such contracts in fulfilling the purchasing needs of all authorized users of such contracts. Such report shall be submitted by such Commissioner to the Governor, the State Comptroller, and the heads of the fiscal committees of each house of the state legislature no later than January 15, 2015, and thereafter annually on or before such date.

Section 2 of this bill provides for an immediate effective date.

Prior legislative history

New Bill.

Justification

When a State agency develops a procurement method that does not fit within the requirements of the Procurement Stewardship Act (the Act), the agency should be able to use such an alternative method for a specific contract award. The bill authorizes the State Comptroller to approve a contract awarded on the basis of an alternative procurement method as long as (i) the contracting agency makes a determination, documented in the procurement record, that such alternative procurement method better serves the interest of the State than other procurement methods available under the Act and can be applied on a fair and equitable basis; and (ii) the State Comptroller approves the alternative procurement method prior to the procurement. In order to effectively monitor the success or failure of the alternative procurement method the procuring State agency must file a report with the State Comptroller by the mid-term of the resulting contract. The State Comptroller will then review the report and make recommendations to the Governor and the Legislature concerning the possible continued use of the alternative procurement method.

The State Comptroller recommends enactment of this bill to improve contracting practices in the State.

Budget implications

This bill has no significant fiscal impact.

Effective date

This bill would take effect immediately.