New York Assembly Bill A05520 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 5520 2025-2026 Regular Sessions  IN ASSEMBLY February 14, 2025 ___________ Introduced by M. of A. HYNDMAN -- read once and referred to the Commit- tee 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, engineering, geological, landscape architectural or surveying 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 Assem- bly, do enact as follows: 1 Section 1. Subparagraph (iv) of paragraph (b) of subdivision 3 of 2 section 2879 of the public authorities law, as amended by chapter 383 of 3 the laws of 1994, is amended to read as follows: 4 (iv) as used in this subparagraph, the term "professional firm" shall 5 be defined as any individual or sole proprietorship, partnership, corpo- 6 ration, association, or other legal entity permitted by law to practice 7 the professions of architecture, engineering or surveying. 8 It is the policy of New York state to negotiate contracts for archi- 9 tectural services and/or engineering services and/or geological services 10 and/or landscape architectural services and/or surveying services on the 11 basis of demonstrated competence and qualification for the type of 12 professional services required and at fair and reasonable fees. 13 In the procurement of architectural, engineering, geological, land- 14 scape architectural and surveying services, the corporation is required 15 to encourage professional firms engaged in the lawful practice of the 16 profession to submit an annual statement of qualifications and perform- 17 ance data. The corporation for each proposed project is required to 18 evaluate current statements of qualifications and performance data on 19 file with the corporation. If desired, the corporation may conduct 20 discussions with three or more professional firms regarding anticipated 21 design concepts and proposed methods of approach to the assignment. The EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06047-01-5 
 A. 5520 2 1 corporation is required to select, in order of preference, based upon 2 criteria established by the corporation, no less than three professional 3 firms deemed to be the most highly qualified to provide the services 4 required. 5 Every corporation is required to negotiate a contract with the highest 6 qualified professional firm for architectural services and/or engineer- 7 ing services and/or geological services and/or landscape architectural 8 services and/or surveying services at compensation which the corporation 9 determines in writing to be fair and reasonable to such corporation. In 10 making this decision, the corporation is required to take into account 11 the estimated value of the services to be rendered, including the costs, 12 the scope, complexity and professional nature thereof. 13 The corporation shall not refuse to negotiate with a professional firm 14 solely because the ratio of the "allowable indirect costs" to direct 15 labor costs of the professional firm or the hourly labor rate in any 16 labor category of the professional firm exceeds a limitation generally 17 set by the corporation in the determination of the reasonableness of the 18 estimated cost of services to be rendered by the professional firm, but 19 rather the corporation should also consider the reasonableness of cost 20 based on the total estimated cost of the service of the professional 21 firm which should include, among other things, all the direct labor 22 costs of the professional firm for such services plus all "allowable 23 indirect costs," other direct costs, and negotiated profit of the 24 professional firm. "Allowable indirect costs" of a professional firm are 25 defined as those costs generally associated with overhead which cannot 26 be specifically identified with a single project or contract and are 27 considered reasonable and allowable under specific state contract or 28 allowability limits. Should the corporation choose to engage in a qual- 29 ification based procurement and be unable to negotiate a satisfactory 30 contract with the professional firm considered to be the most qualified, 31 at a fee the corporation determines to be fair and reasonable to the 32 corporation, negotiations with that professional firm shall be formally 33 terminated. The corporation shall then undertake negotiations with the 34 second most qualified professional firm. Failing accord with the second 35 most qualified professional firm, the corporation shall formally termi- 36 nate negotiations. The corporation shall then undertake negotiations 37 with the third most qualified professional firm. Should the corporation 38 be unable to negotiate a satisfactory contract with any of the selected 39 professional firms, it shall select additional professional firms in 40 order of their competence and qualifications and it shall continue nego- 41 tiations in accordance with this section until an agreement is reached. 42 The provisions of this subparagraph shall only apply to engineering 43 services and/or architectural services and/or geological services and/or 44 landscape architectural services and/or surveying services in excess of 45 twenty-five thousand dollars and shall not apply to the metropolitan 46 transportation authority, the New York city transit authority or the 47 Triborough bridge and tunnel authority or to any of their subsidiaries. 48 § 2. This act shall take effect immediately.