What's happening
This bill requires public authorities and benefit corporations to select and negotiate contracts with the most qualified architectural, engineering, or surveying firms, based on competence and fair fees.
Why it matters
Prioritizes quality and expertise over lowest cost. By requiring public authorities to negotiate contracts with the most qualified architectural, engineering, or surveying firms (not just the cheapest), the law aims to ensure that public projects are handled by firms with proven competence, potentially improving outcomes and reducing costly errors or redesigns.
Standardizes transparent selection processes. The law mandates annual statements of qualifications and performance data from firms, as well as formal evaluation and documented negotiations. This can help limit favoritism or arbitrary selections, making the process more fair and accountable to the public.
Encourages competition and ongoing negotiation. If a contract cannot be agreed upon with the top-ranked firm, authorities must move to the next most qualified, continuing until a deal is reached. This ensures multiple firms have opportunities, and authorities are not locked into a single choice.
Excludes major NYC transit authorities and sets a monetary threshold. The law only applies to contracts above $25,000 and specifically exempts the Metropolitan Transportation Authority, New York City Transit Authority, and Triborough Bridge and Tunnel Authority. This means the biggest transit projects are not affected, potentially limiting the law’s reach to other, smaller public projects.
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Who cares
Public authorities and public benefit corporations
For covered architectural, engineering and surveying services exceeding $25,000, the bill would require ranking at least three qualified firms and negotiating first with the highest-qualified firm at fees determined in writing to be fair and reasonable.
Architectural, engineering and surveying firms
The bill would require covered corporations to encourage annual qualifications submissions and, in qualifications-based procurement, formally end unsuccessful negotiations before moving to the next-ranked firm.
Metropolitan Transportation Authority, New York City Transit Authority and Triborough Bridge and Tunnel Authority
These authorities and their subsidiaries would be exempt from the subparagraph’s requirements.
Headline styles
Pick Most Qualified Engineers First
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Vetoed memo.228
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.436
- Substituted for A5750
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 63–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1297
Show 1 earlier action
- 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 Best Architects First
Assembly Floor Calendar · Sponsor Michael Benedetto
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5600
2017-2018 Regular Sessions
IN SENATE
April 19, 2017
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed 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
S. 5600 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.
Sponsor's memo
Title of bill
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
Purpose of the bill
This bill would allow public authorities a greater opportunity to negotiate with the most qualified architectural and engineering professional firms through annual statements of qualifications and performance data created by professional firms.
Summary of provisions
§ 1- Amends subparagraph (iv) of paragraph (b) of subdivision 3 of § 2879 of the public Authorities Law.
§ 2- Effective date.
Justification
The intent of this bill is to ensure that public authorities and public benefit corporations receive the services of the most qualified contractor through the establishment of a new mechanism for the procurement of engineering, architectural and surveying services. Qualifications Based Selections (QBS) is a procurement process that is used widely throughout the country and has recently been adopted by New York City. Instead of cost-based procurement which focuses primarily on price, QBS procurement focuses on qualifications and experience as the paramount basis for selection. However, after the highest technically ranked firm is selected and the project scope is fully defined, QBS generates a realistic fee based on a fee proposal by the consultant and negotiations with the agency. If an agency cannot negotiate a fair price with the first choice consultant, it has the option to negotiate with the next highly qualified consultant, and so on. QBS allows agencies to select the design firm with the best experience, capabilities, technical approach and quality of personnel, matched to the needs of the project and the agency; generates better plans and specifications, resulting in higher quality contract documents that make bidding on an d carrying out construction easier; fosters the development of innovative, cost-effective design solutions at a fair market value, resulting in lower overall project costs; and generates design solutions that best meet the needs of the project, emphasizing public health, safety and quality of life. QBS is mandated in at least 46 other states and has proven to be an effective procurement tool. QBS generates competition by bringing more firms into the bidding process. As a result, owners are ensured a better project and a savings to the taxpayer.
Legislative history
2015/16 A.5759A/S.4475A 2013/14 A.7268A/S.6639A 2011/12 A.6814A/S.1363A
Fiscal implications
Should result in cost savings for the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.