Authorizes state agencies to use discretionary purchasing authority for procurements from service-disabled veteran-owned businesses

1 Co-sponsor

• Robert Ortt

BILL NUMBER:S4856

Title of bill

An act to amend the state finance law, in relation to authorizing state agencies to use discretionary purchasing authority for procurements from service-disabled veteran-owned business

Purpose of Bill:

To encourage State agencies to purchase commodities and services from service-disabled veteran-owned businesses, this bill would amend the State Finance Law (i) to allow State agencies to identify a quantitative factor for service-disabled veteran-owned businesses in best value procurement evaluations and (ii) to permit State agencies to make discretionary purchases of up to $200,000 from such businesses.

Summary of Provisions:

Section 1 of this bill would amend State Finance Law § 163(1)(j) to permit the use of a quantitative factor in best value procurement evaluations for participation by service-disabled veteran-owned businesses ("SDVOBs"). Section 2 of this bill would amend State Finance Law § 163(6) to broaden the $200,000 discretionary purchasing authority of State agencies to include purchases of commodities and services from SDVOBs.

Existing Law:

State Finance Law § 163(1)(j) permits the use of a quantitative factor in best value procurements relating to recognizing participation by minority- and women-owned businesses ("MWBEs") and small businesses State Finance Law § 163(6) currently provides State agencies with $200,000 of discretionary purchasing authority for procurements without a formal competitive process from MWBEs and small businesses.

Prior Legislative History:

None

Statement in Support:

Chapter 22 of the Laws of 2014 enacted a new Article 17-B of the Executive Law, which creates a new Division of Service-Disabled Veteran-Owned Business Development in the Office of General Services. The Division is empowered to certify qualified SDVOBs and to increase opportunities for such certified businesses to have more opportunities to participate in public procurements. Executive Law § 369-j(c) establishes a Statewide goal of six percent for participation of certified SDVOBs in State procurement contracts.

The definition of the term "best value" in State Finance Law 163(I)(j) currently permits State agencies to use a quantitative factor to encourage the participation of small businesses and MWBEs in best value procurements This bill would permit State agencies to use a quantitative factor for SDVOBs. Pursuant to State Finance Law

163(6), State agencies have discretion to purchase up to $200,000 of commodities, services and technology from MWBEs and small businesses. This bill would allow discretionary purchases of up to $200,000 from SDVOBs.

The use of quantitative factors in best value procurements and the use of discretionary purchasing have been valuable tools for State agencies in meeting their MWBE participation goals. Facilitating participation by SDVOBs through the use of a quantitative factor in best value procurements and broadening the discretionary purchasing authority to include SDVOBs would similarly help State agencies meet their SDVOB participation goals and would further the aims of this new program.

Budget Implications:

This bill would have no fiscal implications for the State.

Local Impact:

Not known.

Effective Date:

This bill would take effect immediately.