Extends expiration of provisions authorizing certain procurements by the metropolitan transportation authority and the New York city transit authority

This bill extends for four years statutory provisions that allow the Metropolitan Transportation Authority (MTA) and the New York City Transit Authority (NYCT) to procure goods and services in ways that save time and money and allow NYCT to consider, in certain cases, New York State content when procuring subway cars.

Summary of provisions:

This bill amends Public Authorities Law (PAL) §§ 126541 and 1209(6) to extend the sunset of various procurement rules from June 30, 2015 to June 30, 2019.

Section three of the bill would provide for an immediate effective date.

Existing law:

PAL § 1209 (applicable to NYCT) currently has a sunset date of June 30, 205 for subdivisions 7 through 13, and PAL § 1265-a (applicable to MTA) currently contains a sunset date of June 30, 2011 that applies to the entire section

Prior legislative history:

The applicable provisions of law have been extended, for various periods of time, by prior legislation See Chapter 98 of the Laws of 2011, Chapter 135 of the Laws of 2008, Chapter 136 of the Laws of 2005; Chapter 745 of the Laws of 2004; Chapter 334 of the Laws of 2001; Chapter 256 of the Laws of 1998 Chapter 637 of the Laws of 1996

Statement in support:

Extending the sunset dates for PAL §§ 1265-a and 1209 will permit MTA and NYCT to continue to use procurement methods, such as competitive Request for Proposals (RFP), that are critical to procuring complex systems and major construction contracts. MTA and NYCT use competitive RFPs on projects that require extensive dialog with proposers prior to the completion of contract terms and pricing. REPs are useful for projects that incorporate new technology such as rolling stock, communications, signaling systems and communication based train control. Continuing innovations in these fields require the flexibility provided by the competitive negotiation that is not available when employing sealed bidding. Many of the new products will be used to improve MTA's and NYCT's ability to monitor passenger facilities and react to emergencies. RFPs allow the MIA and NYCT to evaluate the products that best meet project requirements by accepting proposals from suppliers and then determining the merits if the

existing provisions of the statutes are not extended, MTA and NYCT would be forced to procure these projects via sealed bidding - a method that provides no room for evaluating the innovative and complex products that would best meet the needs of the public. If the agencies were limited to the sealed bidding method they would effectively be precluded from procuring these new technologies.

This extension will also allow NYCT to continue to procure sub-way cats by competitive REP rather than sealed bids. When such procurements are not federally funded. New York State content may be one of the criteria for selection of the awardee.

This extension would also allow MTA to consider a party's status as a Minority and Woman owned Business Enterprises (MWBE) as one of the criteria for selection of the awardee

This extension will also allow MIA and NYCT to continue using Qualified Products Lists (QPLs), which permits various materials, supplies, and equipment to be standardized to achieve efficiency, economy, compatibility, and/or maintenance reliability. Placing an item on a QPL allows MTA and NYCT to quickly obtain critical material aid equipment that meet exact specifications. When an item is placed on the QPL, only pre-qualified products of specified manufacturers may be offered in response to bids for that item. Items on a QPL, generally require extensive testing to determine that they will be compatible with existing equipment and/or be able to withstand the rigors of the subway environment. For example, NYCT has determined that it requires as much as a year-and-a-half to identify hidden defects in subway car wheels. Without pre-qualification, it would be almost impossible to assure a consistent supply of wheels if the agency must take the time required to both test and procure a required product Pre-qualification also permits MTA and NYCT to carefully review suppliers' manufacturing and quality control procedures to ensure the safety of our passengers The use of pre-qualified product lists also provides savings in the operating budget because it enables MIA and NYCT to standardize maintenance materials and equipment to ensure compatibility thereby reducing the amount of material that must be purchased and held in inventory and reducing the amount of maintenance work that must be performed.

Finally, this extension will maintain the existing threshold above which MIA and NYCT must solicit purchases via sealed bids at $15,000 If this law were not extended the threshold would revert to $10,000 Permitting the threshold to be reduced would delay certain MTA and NYCT procurements due to the additional administrative requirements of procuring by sealed bid.

This legislation will affect a critical extension that will ensure that, among other things, NYCT can continue to properly negotiate procurements and to use QPLs. Extending the current statutes to June 2019 will allow the MTA to use consistent procurement methods throughout its 205-2019 capital program

Budget implications:

This bill has no budgetary implications, but will offer cost savings to the MIA and NYCT

Local Impact:

None