Bill Text: NY A07636 | 2019-2020 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Authorizes in the city of New York, for certain public work undertaken pursuant to project labor agreements, use of the alternative delivery method known as design-build contracts.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2019-12-31 - APPROVAL MEMO.94 [A07636 Detail]

Download: New_York-2019-A07636-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         7636--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 14, 2019
                                       ___________

        Introduced  by  M.  of  A.  BRAUNSTEIN,  RODRIGUEZ,  FALL, D. ROSENTHAL,
          WEPRIN, EICHENSTEIN -- read once and  referred  to  the  Committee  on
          Cities  -- reported and referred to the Committee on Ways and Means --
          reported and referred to the Committee on  Rules  --  Rules  Committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to the Committee on Rules

        AN  ACT  to  authorize,  for certain public works undertaken pursuant to
          project labor agreements, use of the alternative delivery method known
          as design-build contracts;  and  providing  for  the  repeal  of  such
          provisions upon expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Short title.  This act shall be known and may be  cited  as
     2  the "New York city public works investment act".
     3    § 2. For the purposes of this act:
     4    (a)  "Authorized  entity"  shall  mean the New York city department of
     5  design and construction, the New York city department  of  environmental
     6  protection, the New York city department of transportation, the New York
     7  city  department  of  parks and recreation, the New York city health and
     8  hospitals corporation, the New York city school  construction  authority
     9  and the New York city housing authority.
    10    (b)  "Best  value"  shall  mean  the  basis for awarding contracts for
    11  services to a proposer that  optimizes  quality,  cost  and  efficiency,
    12  price  and  performance  criteria, which may include, but is not limited
    13  to:
    14    (1) The quality of the proposer's performance on previous projects;
    15    (2) The timeliness of the proposer's performance on previous projects;
    16    (3) The level of customer satisfaction with the proposer's performance
    17  on previous projects;
    18    (4) The proposer's record of performing previous  projects  on  budget
    19  and ability to minimize cost overruns;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11524-03-9

        A. 7636--A                          2

     1    (5) The proposer's ability to limit change orders;
     2    (6) The proposer's ability to prepare appropriate project plans;
     3    (7) The proposer's technical capacities;
     4    (8) The individual qualifications of the proposer's key personnel;
     5    (9) The proposer's ability to assess and manage risk and minimize risk
     6  impact;
     7    (10) The proposer's financial capability;
     8    (11)  The  proposer's  ability to comply with applicable requirements,
     9  including the provisions of articles 145, 147 and 148 of  the  education
    10  law;
    11    (12)  The proposer's past record of compliance with federal, state and
    12  local laws, rules, licensing requirements, where applicable, and  execu-
    13  tive  orders, including but not limited to compliance with the labor law
    14  and other applicable labor and prevailing wage laws, article 15-A of the
    15  executive law, and any other applicable laws  concerning  minority-  and
    16  women-owned business enterprise participation;
    17    (13) The proposer's record of complying with existing labor standards,
    18  maintaining  harmonious  labor  relations, and protecting the health and
    19  safety of workers and payment of wages above any locally-defined  living
    20  wage; and
    21    (14)  A quantitative factor to be used in evaluation of bids or offers
    22  for awarding of contracts for bidders or offerers that are certified  as
    23  minority-  or  women-owned business enterprises pursuant to article 15-A
    24  of the executive law, and certified pursuant to local law  as  minority-
    25  or  women-owned business enterprises. Where an agency identifies a quan-
    26  titative factor pursuant to this paragraph, the agency must specify that
    27  businesses certified as minority- or  women-owned  business  enterprises
    28  pursuant to article 15-A of the executive law as well as those certified
    29  as  minority- or women-owned business enterprises or pursuant to section
    30  1304 of the New York city charter  are  eligible  to  qualify  for  such
    31  factor.  Nothing  in  this paragraph shall be construed as a requirement
    32  that such businesses be concurrently certified as  minority-  or  women-
    33  owned  business enterprises under both article 15-A of the executive law
    34  and section 1304 of the New York city charter to qualify for such  quan-
    35  titative   factors.   In  addition,  where  the  New  York  city  school
    36  construction authority acts as the authorized entity, businesses  certi-
    37  fied  as  minority-  or  women-owned  business  enterprises  pursuant to
    38  section 1743 of the public authorities law shall be eligible to  qualify
    39  for such factor.
    40    Such  basis  shall reflect, wherever possible, objective and quantifi-
    41  able analysis.
    42    (c) "Cost plus" shall mean compensating a contractor for the  cost  to
    43  complete a contract by reimbursing actual costs for labor, equipment and
    44  materials plus an additional amount for overhead and profit.
    45    (d)  "Design-build  contract" shall mean a contract for the design and
    46  construction of a public work with a single entity, which may be a  team
    47  comprised of separate entities.
    48    (e)  "Project  labor  agreement"  shall  have the meaning set forth in
    49  subdivision 1 of section 222 of the labor law. A project labor agreement
    50  shall require participation in apprentice training programs  in  accord-
    51  ance with paragraph (e) of subdivision 2 of such section.
    52    §  3.  Any contract for a public work undertaken pursuant to a project
    53  labor agreement in accordance with section 222 of the labor law may be a
    54  design-build contract in accordance with this act.
    55    § 4. Notwithstanding any general, special or local law, rule or  regu-
    56  lation to the contrary, including but not limited to section 7210 of the

        A. 7636--A                          3

     1  education  law,  article  5-A of the general municipal law, article 8 of
     2  the public  housing law, sections 1734 and 1735 of the  public  authori-
     3  ties  law and section 8 of the New York city health and hospitals corpo-
     4  ration act, and in conformity with the requirements of this act, for any
     5  public  work  that  has  an  estimated cost of not less than 1.2 million
     6  dollars and is undertaken pursuant  to  a  project  labor  agreement  in
     7  accordance  with  section  222  of  the  labor law, an authorized entity
     8  charged with awarding a contract for public work may use the alternative
     9  delivery method referred to as design-build contracts.
    10    (a) A contractor selected by such an authorized entity to enter into a
    11  design-build contract shall be selected through a  two-step  method,  as
    12  follows:
    13    (1)  Step  one.  Generation of a list of responding entities that have
    14  demonstrated  the  general  capability  to  perform   the   design-build
    15  contract.  Such  list  shall consist of a specified number of responding
    16  entities, as determined by an authorized entity, and shall be  generated
    17  based  upon  the  authorized  entity's review of responses to a publicly
    18  advertised request for qualifications. The authorized  entity's  request
    19  for  qualifications  shall  include  a general description of the public
    20  work, the maximum number of responding entities to be  included  on  the
    21  list,  the selection criteria to be used and the relative weight of each
    22  criteria in generating the list.  Such selection criteria shall  include
    23  the  qualifications  and experience of the design and construction team,
    24  organization, demonstrated responsibility, ability of the team or  of  a
    25  member  or  members  of the team to comply with applicable requirements,
    26  including the provisions of articles 145, 147 and 148 of  the  education
    27  law, past record of compliance with the labor law, and such other quali-
    28  fications the authorized entity deems appropriate, which may include but
    29  are  not  limited  to  project  understanding,  financial capability and
    30  record of past performance. The authorized  entity  shall  evaluate  and
    31  rate  all  responding entities to the request for qualifications.  Based
    32  upon such ratings, the authorized entity shall list the responding enti-
    33  ties that shall receive a request for proposals in accordance with para-
    34  graph two of this subdivision. To the extent consistent with  applicable
    35  federal  law,  the  authorized  entity shall consider, when awarding any
    36  contract pursuant to this section, the participation of  (i)  responding
    37  entities  that are certified as minority- or women-owned business enter-
    38  prises pursuant to article 15-A  of  the  executive  law,  or  certified
    39  pursuant  to local law as minority- or women-owned business enterprises,
    40  or, where the New York city school construction authority  acts  as  the
    41  authorized  entity,  certified  pursuant  to  section 1743 of the public
    42  authorities law; and (ii) small business concerns identified pursuant to
    43  subdivision (b) of section 139-g of the state finance law. In  addition,
    44  nothing  in this section shall be deemed to supersede any pre-qualifica-
    45  tion guidelines or requirements  otherwise  authorized  by  law  for  an
    46  authorized entity.
    47    (2) Step two. Selection of the proposal which is the best value to the
    48  authorized  entity.    The  authorized  entity shall issue a request for
    49  proposals to the responding entities listed pursuant to paragraph one of
    50  this subdivision. If such a responding entity  consists  of  a  team  of
    51  separate  entities,  the  entities that comprise such a team must remain
    52  unchanged from the responding entity as listed pursuant to paragraph one
    53  of this subdivision unless otherwise approved by the authorized  entity.
    54  The  request  for  proposals  shall set forth the public work's scope of
    55  work, and other requirements, as determined by  the  authorized  entity,
    56  which  may  include  separate  goals  for  work under the contract to be

        A. 7636--A                          4

     1  performed by businesses certified as minority- or  women-owned  business
     2  enterprises  pursuant  to  article  15-A of the executive law or section
     3  1743 of the public authorities law, or certified pursuant to  local  law
     4  as  minority-  or  women-owned  business  enterprises.  The  request for
     5  proposals shall also specify the criteria to be  used  to  evaluate  the
     6  responses  and the relative weight of each of such criteria. Such crite-
     7  ria shall include the proposal's cost, the  quality  of  the  proposal's
     8  solution,  the  qualifications and experience of the proposer, and other
     9  factors deemed pertinent by the authorized entity,  which  may  include,
    10  but  shall  not  be  limited  to,  the proposal's manner and schedule of
    11  project implementation, the proposer's ability to complete the work in a
    12  timely and satisfactory  manner,  maintenance  costs  of  the  completed
    13  public  work, maintenance of traffic approach, and community impact. Any
    14  contract awarded pursuant to this act shall be awarded to  a  responsive
    15  and  responsible  proposer,  which,  in consideration of these and other
    16  specified criteria deemed pertinent, offers the best  value,  as  deter-
    17  mined  by the authorized entity. The request for proposals shall include
    18  a statement that proposers shall designate in writing those portions  of
    19  the proposal that contain trade secrets or other proprietary information
    20  that  are to remain confidential; that the material designated as confi-
    21  dential shall be readily separable from the proposal.  Nothing  in  this
    22  subdivision  shall  be  construed to prohibit the authorized entity from
    23  negotiating final contract terms  and  conditions  including  cost.  All
    24  proposals  submitted shall be scored according to the criteria listed in
    25  the request for proposals and such final scores shall  be  published  on
    26  the authorized entity's website.
    27    (b)  An  authorized  entity  awarding  a  design-build  contract  to a
    28  contractor offering the best value may but shall not be required to  use
    29  the following types of contracts:
    30    (1)  A  cost-plus  not  to  exceed  guaranteed  maximum  price form of
    31  contract in which the authorized entity shall be entitled to monitor and
    32  audit all costs. In establishing the schedule and process for  determin-
    33  ing  a  guaranteed  maximum  price,  the contract between the authorized
    34  entity and the contractor shall:
    35    (i) Describe the scope of the work and the  cost  of  performing  such
    36  work,
    37    (ii) Include a detailed line item cost breakdown,
    38    (iii)  Include a list of all drawings, specifications and other infor-
    39  mation on which the guaranteed maximum price is based,
    40    (iv) Include the dates of substantial and final  completion  on  which
    41  the guaranteed maximum price is based, and
    42    (v) Include a schedule of unit prices; or
    43    (2) A lump sum contract in which the contractor agrees to accept a set
    44  dollar  amount  for  a  contract  which  comprises  a single bid without
    45  providing a cost breakdown for all costs such as for  equipment,  labor,
    46  materials,  as well as such contractor's profit for completing all items
    47  of work comprising the public work.
    48    § 5. Any contract entered into pursuant to this act  shall  include  a
    49  clause  requiring  that  any professional services regulated by articles
    50  145, 147 and 148 of the education law shall be performed and stamped and
    51  sealed, where appropriate, by a professional licensed in accordance with
    52  the appropriate article.
    53    § 6. Construction with respect to each contract  entered  into  by  an
    54  authorized  entity  pursuant to this act shall be deemed a "public work"
    55  to be performed in accordance with the provisions of article  8  of  the
    56  labor  law, as well as subject to sections 200, 240, 241 and 242 of such

        A. 7636--A                          5

     1  law and enforcement of prevailing wage requirements pursuant to applica-
     2  ble law or, for projects or public works receiving federal aid, applica-
     3  ble federal requirements for prevailing wage. Any contract entered  into
     4  pursuant  to  this  act  shall  include  a clause requiring the selected
     5  design builder to obligate every  tier  of  contractor  working  on  the
     6  public  work  to  comply  with the project labor agreement referenced in
     7  section three of this act, and shall  include  project  labor  agreement
     8  compliance  monitoring  and  enforcement  provisions consistent with the
     9  applicable project labor agreement.
    10    § 7. Each contract entered into by an authorized  entity  pursuant  to
    11  this  act  shall  comply  with  the  objectives and goals with regard to
    12  minority- and women-owned business enterprises pursuant to, as  applica-
    13  ble,  section  6-129 of the administrative code of the city of New York,
    14  subdivision 6 of section 8 of the New York  city  health  and  hospitals
    15  corporation  act,  section  1743  of the public authorities law, or, for
    16  projects or public  works  receiving  federal  aid,  applicable  federal
    17  requirements  for  disadvantaged  business  enterprises or minority- and
    18  women-owned business enterprises.
    19    § 8. Public works undertaken by an authorized entity pursuant to  this
    20  act  shall  be  subject to the requirements of article 8 of the environ-
    21  mental conservation law, and, where applicable, the requirements of  the
    22  National Environmental Policy Act.
    23    §  9.  (a)  Notwithstanding  any provision of law to the contrary, all
    24  rights or benefits, including terms and conditions  of  employment,  and
    25  protection  of  civil  service  and  collective bargaining status of all
    26  employees of authorized entities solely in connection with  public  work
    27  undertaken  by  an  authorized  entity  pursuant  to  this act, shall be
    28  preserved and protected.
    29    (b) Nothing in this act shall result in the: (1) displacement  of  any
    30  currently  employed  worker  or  loss  of  position  (including  partial
    31  displacement such as a reduction in  the  hours  of  non-overtime  work,
    32  wages  or  employment benefits), or result in the impairment of existing
    33  collective bargaining agreements; and (2) transfer  of  existing  duties
    34  and  functions related to maintenance and operations currently performed
    35  by existing employees of authorized entities to a contractor.
    36    (c) Employees of  authorized  entities  using  design-build  contracts
    37  serving  in  positions  in newly created titles shall be assigned to the
    38  appropriate bargaining unit. Nothing contained  in  this  act  shall  be
    39  construed  to  affect (1) the existing rights of employees of such enti-
    40  ties pursuant to an existing collective bargaining  agreement,  (2)  the
    41  existing  representational  relationships  among  employee organizations
    42  representing employees of such entities, or (3) the bargaining relation-
    43  ships between such entities and such employee organizations.
    44    § 10. The submission of a proposal or responses or the execution of  a
    45  design-build  contract pursuant to this act shall not be construed to be
    46  a violation of section 6512 of the education law.
    47    § 11. Nothing contained in this act shall limit  the  right  or  obli-
    48  gation  of  any  authorized  entity to comply with the provisions of any
    49  existing contract or to award contracts as otherwise provided by law.
    50    § 12.  The authority conferred by this act shall be in addition to the
    51  authority conferred  by  any  other  law  upon  any  authorized  entity,
    52  provided  that  any public work covered by the New York city BQE design-
    53  build act, the New York city housing authority modernization  investment
    54  act  or  the  New  York  city Rikers Island jail complex replacement act
    55  shall continue to be governed by the provisions of such act  while  such
    56  provisions are in effect.

        A. 7636--A                          6

     1    §  13.  This act shall take effect immediately and shall expire and be
     2  deemed repealed three years after such date, provided that, public works
     3  with requests for qualifications issued prior to such  repeal  shall  be
     4  permitted to continue under this act notwithstanding such repeal.
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