STATE OF NEW YORK
        ________________________________________________________________________
                                         7819--A
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      May 16, 2017
                                       ___________
        Introduced by M. of A. BUCHWALD -- read once and referred to the Commit-
          tee  on  Governmental  Operations  --  recommitted to the Committee on
          Governmental Operations in accordance with Assembly Rule 3, sec. 2  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
        AN ACT to amend the state finance law, in relation  to  state  contracts
          for landscape architecture
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 136-a of the state finance law, as amended by chap-
     2  ter 388 of the laws of 2017, is amended to read as follows:
     3    § 136-a. Contracts for architectural, engineering,  geological,  land-
     4  scape  architecture  and surveying services. 1. As used in this section:
     5  the term "professional firm" shall be defined as any individual or  sole
     6  proprietorship,  partnership,  corporation,  association  or other legal
     7  entity permitted by law to practice  the  professions  of  architecture,
     8  engineering, geology, landscape architecture or surveying.
     9    The term "state department" shall be defined as those state government
    10  departments,  divisions  or  commissions empowered by the state to enter
    11  into contractual agreements on behalf of the state of New York.
    12    2. It is the policy of New  York  state  to  negotiate  contracts  for
    13  architectural and/or engineering services and/or geological and/or land-
    14  scape  architecture  and/or  surveying  services  on the basis of demon-
    15  strated competence  and  qualification  for  the  type  of  professional
    16  services required and at fair and reasonable fees.
    17    3. In the procurement of architectural, engineering, geological, land-
    18  scape  architecture  and surveying services, the requiring state depart-
    19  ment shall encourage professional firms engaged in the  lawful  practice
    20  of  the  profession  to submit an annual statement of qualifications and
    21  performance data. The  requiring  state  department  for  each  proposed
    22  project shall evaluate current statements of qualifications and perform-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01569-03-8

        A. 7819--A                          2
     1  ance  data  on file with the department. If desired, the requiring state
     2  department may conduct discussions with three or more professional firms
     3  regarding anticipated design concepts and proposed methods  of  approach
     4  to  the assignment. The state department shall select, in order of pref-
     5  erence, based upon criteria established by the requiring  state  depart-
     6  ment, no less than three professional firms deemed to be the most highly
     7  qualified to provide the services required.
     8    4.  The requiring state department shall negotiate a contract with the
     9  highest qualified professional firm for architectural and/or engineering
    10  services and/or geological service and/or landscape architecture  and/or
    11  surveying  services  at  compensation which the department determines in
    12  writing to be fair and reasonable to the state of New  York.  In  making
    13  this  decision,  the  department  shall  take into account the estimated
    14  value of the services to be rendered, including the  costs,  the  scope,
    15  complexity,  and  professional  nature thereof. The department shall not
    16  refuse to negotiate with a professional firm solely because the ratio of
    17  the "allowable indirect costs" to direct labor costs of the professional
    18  firm or the hourly labor rate in any labor category of the  professional
    19  firm  exceeds a limitation generally set by the department in the deter-
    20  mination of the reasonableness of the estimated cost of services  to  be
    21  rendered by the professional firm, but rather the department should also
    22  consider the reasonableness of cost based on the total estimated cost of
    23  the  service  of the professional firm which should include, among other
    24  things, all the direct labor costs of the  professional  firm  for  such
    25  services  plus  all  "allowable indirect costs," other direct costs, and
    26  negotiated profit of the professional firm. "Allowable  indirect  costs"
    27  of  a  professional firm are defined as those costs generally associated
    28  with overhead which cannot be  specifically  identified  with  a  single
    29  project  or  contract  and are considered reasonable and allowable under
    30  specific state contract or allowability  limits.  Should  the  requiring
    31  state department be unable to negotiate a satisfactory contract with the
    32  professional  firm  considered  to  be  the most qualified, at a fee the
    33  department determines to be fair and reasonable  to  the  state  of  New
    34  York,  negotiations with that professional firm shall be formally termi-
    35  nated. The requiring state department shall then undertake  negotiations
    36  with  the  second  most qualified professional firm. Failing accord with
    37  the second  most  qualified  professional  firm,  the  department  shall
    38  formally  terminate  negotiations.  The requiring state department shall
    39  then undertake negotiations with the third most  qualified  professional
    40  firm.  Should  the  requiring  state department be unable to negotiate a
    41  satisfactory contract with any of the selected  professional  firms,  it
    42  shall  select additional professional firms in order of their competence
    43  and qualification and it shall continue negotiations in accordance  with
    44  this section until an agreement is reached.
    45    5.  This  legislation shall only apply to engineering and/or architec-
    46  tural services and/or geological and/or  landscape  architecture  and/or
    47  surveying services in excess of twenty-five thousand dollars.
    48    §  2.  This  act  shall take effect on the sixtieth day after it shall
    49  have become a law.