What's happening
This bill requires public authorities and benefit corporations to select and negotiate with the most qualified architectural, engineering, or surveying firms based on competence, not price.
Why it matters
Emphasizes expertise over cost. By requiring public authorities to select architectural, engineering, and surveying firms primarily on demonstrated competence and qualifications, the bill seeks to ensure that critical public projects are handled by the most capable professionals, potentially improving project quality and safety.
Standardizes the selection process. The bill introduces a structured approach for authorities to evaluate and negotiate with firms—mandating annual statements of qualifications, multi-stage evaluations, and formal negotiations in order of merit—bringing more transparency and consistency to procurement practices.
Limits price-driven selection. The legislation prevents authorities from immediately disqualifying firms based on certain cost ratios or hourly rates, encouraging a more holistic assessment of overall value and reinforcing that price should only be negotiated after qualifications are established.
Potentially impacts project costs and competition. By excluding low-bid selection and requiring negotiations with top-ranked firms, the bill may lead to higher initial costs but aims to reduce long-term risks and overruns. Notably, it exempts major NYC transit authorities, so its effects are focused on other public authorities throughout the state.
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Who cares
Headline styles
Pick Best Architects First
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Substituted by S5600
- Rules report cal.436
- Reported
- Reported referred to rules
- Reported referred to ways and means
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Pick Most Qualified Engineers First
Vetoed · Sponsor John A. DeFrancisco
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5750
2017-2018 Regular Sessions
IN ASSEMBLY
February 15, 2017
Introduced by M. of A. BENEDETTO -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to requiring public authorities and public benefit corporations to negotiate with professional firms providing architectural or engineering services in order from the most qualified to the least qualified with regard to the provision of services to the authority or corporation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (iv) of paragraph (b) of subdivision 3 of section 2879 of the public authorities law, as amended by chapter 383 of the laws of 1994, is amended to read as follows:
(iv) as used in this subparagraph, the term "professional firm" shall be defined as any individual or sole proprietorship, partnership, corporation, association, or other legal entity permitted by law to practice the professions of architecture, engineering or surveying.
It is the policy of New York state to negotiate contracts for architectural and/or engineering services and/or surveying services on the basis of demonstrated competence and qualification for the type of professional services required and at fair and reasonable fees.
In the procurement of architectural, engineering and surveying services, the corporation is required to encourage professional firms engaged in the lawful practice of the profession to submit an annual statement of qualifications and performance data. The corporation for each proposed project is required to evaluate current statements of qualifications and performance data on file with the corporation. If desired, the corporation may conduct discussions with three or more professional firms regarding anticipated design concepts and proposed methods of approach to the assignment. The corporation is required to select, in order of preference, based upon criteria established by the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07014-01-7
A. 5750 2
corporation, no less than three professional firms deemed to be the most highly qualified to provide the services required.
Every corporation is required to negotiate a contract with the highest qualified professional firm for architectural and/or engineering services and/or surveying services at compensation which the corporation determines in writing to be fair and reasonable to such corporation. In making this decision, the corporation is required to take into account the estimated value of the services to be rendered, including the costs, the scope, complexity and professional nature thereof.
The corporation shall not refuse to negotiate with a professional firm solely because the ratio of the "allowable indirect costs" to direct labor costs of the professional firm or the hourly labor rate in any labor category of the professional firm exceeds a limitation generally set by the corporation in the determination of the reasonableness of the estimated cost of services to be rendered by the professional firm, but rather the corporation should also consider the reasonableness of cost based on the total estimated cost of the service of the professional firm which should include, among other things, all the direct labor costs of the professional firm for such services plus all "allowable indirect costs," other direct costs, and negotiated profit of the professional firm. "Allowable indirect costs" of a professional firm are defined as those costs generally associated with overhead which cannot be specifically identified with a single project or contract and are considered reasonable and allowable under specific state contract or allowability limits. Should the corporation choose to engage in a qualification based procurement and be unable to negotiate a satisfactory contract with the professional firm considered to be the most qualified, at a fee the corporation determines to be fair and reasonable to the corporation, negotiations with that professional firm shall be formally terminated. The corporation shall then undertake negotiations with the second most qualified professional firm. Failing accord with the second most qualified professional firm, the corporation shall formally terminate negotiations. The corporation shall then undertake negotiations with the third most qualified professional firm. Should the corporation be unable to negotiate a satisfactory contract with any of the selected professional firms, it shall select additional professional firms in order of their competence and qualifications and it shall continue negotiations in accordance with this section until an agreement is reached. The provisions of this subparagraph shall only apply to engineering and/or architectural services and/or surveying services in excess of twenty-five thousand dollars and shall not apply to the metropolitan transportation authority, the New York city transit authority or the Triborough bridge and tunnel authority or to any of their subsidiaries.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.