What's happening
This bill defines "prevailing market price" and allows preferred source contractors to subcontract incidental work under certain conditions.
Why it matters
Clarifies how the "prevailing market price" is determined. , which could impact how state agencies compare prices and justify purchases from preferred sources—potentially affecting competition and contract awards.
Allows preferred source contractors to subcontract a small, incidental part of their contracts. , even to vendors that are not preferred sources, as long as it does not reduce job opportunities for people with disabilities or others served by the preferred source program. This could make contract fulfillment more flexible and efficient.
Requires that any subcontracting by preferred sources be essential to providing the main service. , ensuring that the core mission of employing individuals from the preferred source population is maintained and not undermined by excessive outsourcing.
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Who cares
Preferred Source Providers
Organizations with preferred source status (often employing people with disabilities or other disadvantaged groups) are directly impacted, as the bill clarifies when and how they can subcontract work while protecting employment opportunities for their target populations.
Vendors (Preferred and Non-Preferred)
Both types of vendors care because the new definition of "prevailing market price" and the subcontracting rules affect their eligibility, pricing, and ability to participate in state contracts.
State Procurement Officials
These officials are responsible for implementing the new guidelines, ensuring compliance with the amended definitions and subcontracting rules, and maintaining fair and competitive procurement practices.
Advocacy Groups for Disabled and Disadvantaged Workers
These groups have a stake in ensuring that preferred source contracts continue to provide job opportunities for their constituents and that subcontracting does not undermine these employment goals.
Headline styles
Clarify Market Price Rules
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to finance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
921
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, BOYLE, GRIFFO, HELMING, ORTT, SEPULVEDA, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to the definition of prevailing market price and in relation to preferred source subcontracts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 6 of section 162 of the state finance law is amended by adding a new paragraph g to read as follows:
g. For the purposes of this subdivision only, "prevailing market price" shall mean the average price at which vendors of the same or similar product or service regularly engaged in the business of selling such product or service offers to sell such product or service under similar terms in the same market.
§ 2. Section 162 of the state finance law is amended by adding a new subdivision 6-a to read as follows:
6-a. Preferred source subcontracts. Pursuant to guidelines established by the state procurement council, a preferred source may subcontract an incidental portion of a contract to a vendor that is or is not a preferred source, provided that such subcontract does not diminish bona fide employment opportunities for persons who could otherwise be new clients of an entity previously accorded preferred source status. Such subcontract shall be integral to the service being delivered by the providing preferred source agency.
§ 3. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01459-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to the definition of prevailing market price and in relation to preferred source subcontracts
Purpose
Clarifies provisions providing for the contracting for commodities and services by the state, political services by the state, political subdi- visions and public benefit corporations from certain preferred sources.
Summary of specific provisions
Section 1 amends subdivision 6 of section 162 of the state finance law to define "prevailing market price" for purposes of the preferred source provisions.
Section 2 adds a new section 6-a to the state finance law to provide that a preferred source provider may subcontract an incidental portion of a contract to a vendor that may or not be a preferred source provided that the subcontract does not otherwise diminish bona fide employment opportunities for persons who could otherwise be new clients of an enti- ty previously designated preferred source status which is integral to the services being delivered to the preferred source entity.
Justification
Members of the Legislature have heard from numerous constituents and not-for-profit agencies that offer employment opportunities to individ- uals with disabilities about a process that has become protracted and cumbersome. The current process has put jobs, job opportunities and not-for-profits fiscal well being at risk. This program was put into effect over 40 years ago to combat a problem with employment for a segment of the population that has the highest unemployment rate among any categorized group, and these changes will clear up confusion that is currently hindering the opportunities for continued employment growth for individuals with disabilities.
Legislative history
2018: S.5096-A Passed Senate 2017: S.5096/A.6832 Passed Senate
Fiscal implications
There would be no known fiscal impact.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.