Authorizes municipal housing authorities to engage in shared purchasing contracts with the state, political subdivisions and other municipal housing authorities

BILL NUMBER:S5384A Revised 06/12/15

Title of bill

An act to amend the general municipal law, in relation to providing municipal housing authorities greater flexibility and cost savings by permitting certain shared purchasing among political subdivisions and municipal housing authorities

Purpose

Authorizes municipalities and districts thereof to contract for goods and services jointly with federal and any state or other municipality.

Summary of provisions

Section 1 amends subdivision 16 of section 103 of the general municipal law, to authorize any officer, board or agency of a county, political subdivision or any district therein authorized to make purchases of apparatus, materials, equipment or supplies, or to contract for services, may make such purchase, or may contract for such services, as may be required by such contract let by the United States of America or any agency thereof, any state or other county or political subdivision if such contract was let in a manner that constitutes competitive bidding consistent with state law and made available for use by other. government entities. This section also defines the term "municipal housing authority or authorities" for the purpose of this subdivision.

Section 2 contains the effective date.

Justification

Cooperative purchasing, also commonly referred to as piggy-backing, is a procurement method whereby if a government agency has already gone through the procurement process and awarded a contract to one or more venders for a particular product or service, the contract can be utilized by other government agencies on the same terms and conditions. Piggy-backing has been proven to reduce administrative and product cost, increase efficiencies and stretch shrinking budgets during difficult times.

When Piggybacking became available in New York (2013), political subdivisions experienced a period of legal consultation to ensure they complied with the GML 103 single local law or single rule, regulation, or resolution requirement. This period of investigation and policy formation did not lend an immediate opportunity for many agencies to take advantage of piggybacking's soft and hard cost savings until late 2014, and yet there are over 2,100 participating agencies. During that timeframe the State of New York Office of General Services has piggybacked multiple cooperative contracts offered via National Purchasing Cooperatives because of savings identified.

With the original language and sunset period starting Nov. 2012, it is now causing a concern for local decision makers as they have reaped the savings provided through the GML 103 law and are incorporating piggybacking into their efficiency studies, budgeting and capital

planning. Those political subdivisions who have been able to take advantage of piggybacking have found there to be great savings, documented examples available, while still keeping the business within the State of New York.

Legislative history

New Bill

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.