S T A T E O F N E W Y O R K ________________________________________________________________________ 7513 2015-2016 Regular Sessions I N A S S E M B L Y May 14, 2015 ___________ Introduced by M. of A. PEOPLES-STOKES -- (at request of the State Comp- troller) -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law, in relation to allowing the state comptroller to excuse non-material deviations in a procurement; in relation to participation by state agencies in a system used by the comptroller to compile vendor responsibility information; in relation to defining information technology for procurement purposes; in relation to authorizing the commissioner of the office of general services and state agencies to develop alternative procurement methods not otherwise authorized by law under certain circumstances; in relation to authorizing competitive negotiation concluding with a best and final offer; in relation to clarifying the use of best and final offers for invitations for bids and requests for proposals for goods, services and technology; in relation to requiring competition and increased oversight for private vendor preferred source opportunities; in relation to increasing the threshold for construction bonds and requiring performance bonds for certain installation projects; in relation to clarifying the use of contracts let by another govern- mental agency; in relation to reports on centralized contracts; in relation to increasing the threshold for the state comptroller's approval of certain contracts and clarifying the valuation of non-cash contracts by the state comptroller; and to amend the education law, in relation to defining construction related services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subdivision 12 of section 163 of the state finance law, as 2 added by chapter 83 of the laws of 1995, is amended to read as follows: 3 12. Review by the office of the state comptroller. Review by the 4 office of the state comptroller shall be in accordance with section one 5 hundred twelve of this chapter. WHERE THE CONTRACTING AGENCY HAS NOT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09149-02-5 A. 7513 2 1 COMPLIED WITH ONE OR MORE PROVISIONS OF THIS ARTICLE, THE STATE COMP- 2 TROLLER MAY APPROVE THE AWARDED CONTRACT IF: 3 A. THE CONTRACTING AGENCY DETERMINES AND CERTIFIES, BASED UPON A 4 PREPONDERANCE OF THE EVIDENCE DOCUMENTED IN THE PROCUREMENT RECORD, THAT 5 THE NONCOMPLIANCE WAS A NON-MATERIAL DEVIATION FROM ONE OR MORE 6 PROVISIONS OF THIS ARTICLE. FOR THE PURPOSES OF THIS SUBDIVISION 7 "NON-MATERIAL DEVIATION" SHALL MEAN THAT SUCH NONCOMPLIANCE DID NOT 8 PREJUDICE OR FAVOR ANY VENDOR OR POTENTIAL VENDOR, SUCH NONCOMPLIANCE 9 DID NOT SUBSTANTIALLY AFFECT THE FAIRNESS OF THE COMPETITIVE PROCESS, 10 AND THAT A NEW PROCUREMENT WOULD NOT BE IN THE BEST INTEREST OF THE 11 STATE. SUCH DETERMINATION BY THE CONTRACTING AGENCY AND THE STATE COMP- 12 TROLLER SHALL BE DOCUMENTED IN THE PROCUREMENT RECORD; AND 13 B. THE STATE COMPTROLLER CONCURS IN SUCH DETERMINATION. 14 S 2. The state finance law is amended by adding a new section 163-c to 15 read as follows: 16 S 163-C. VENDOR RESPONSIBILITY; ONLINE SYSTEM PARTICIPATION. 1. DEFI- 17 NITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE 18 FOLLOWING MEANINGS: 19 A. "ENROLLMENT" SHALL MEAN THE ESTABLISHMENT OF AN ONLINE SERVICES 20 ACCOUNT WITH THE STATE COMPTROLLER, INCLUDING, BUT NOT LIMITED TO, THE 21 CREATION OF A UNIQUE USER IDENTIFICATION AND PASSWORD. ENROLLMENT 22 PROVIDES A USER ACCESS TO THE SYSTEM. 23 B. "ONLINE SERVICES" SHALL MEAN THE SERVICES PROVIDED ELECTRONICALLY 24 AND SECURELY BY THE STATE COMPTROLLER FOR THE BENEFIT OF NEW YORK'S 25 CUSTOMERS, CLIENTS AND BUSINESS PARTNERS. SUCH ONLINE SERVICES MAY BE 26 EXPANDED AND ENHANCED AS TECHNOLOGY ALLOWS. 27 C. "STATE AGENCY" OR "STATE AGENCIES" SHALL MEAN ALL STATE DEPART- 28 MENTS, BOARDS, COMMISSIONS, OFFICES OR INSTITUTIONS. SUCH TERM SHALL NOT 29 INCLUDE THE LEGISLATURE OR THE JUDICIARY. 30 D. "STATE CONTRACT" OR "CONTRACT" SHALL MEAN AND INCLUDE ANY WRITTEN 31 AGREEMENT FOR THE ACQUISITION OF GOODS, SERVICES OR CONSTRUCTION OF ANY 32 KIND BETWEEN A VENDOR AND A STATE AGENCY, OR A WRITTEN AGREEMENT OR 33 OTHER INSTRUMENT WHEREIN A STATE AGENCY AGREES TO GIVE CONSIDERATION 34 OTHER THAN THE PAYMENT OF MONEY AS CONTEMPLATED IN SUBDIVISION THREE OF 35 SECTION ONE HUNDRED TWELVE OF THIS CHAPTER. 36 E. "SUBCONTRACTOR" SHALL MEAN AN INDIVIDUAL, SOLE PROPRIETORSHIP, 37 PARTNERSHIP, JOINT VENTURE OR CORPORATION, WHICH IS ENGAGED IN A SUBCON- 38 TRACT BY A VENDOR PURSUANT TO A STATE CONTRACT AND SUCH SUBCONTRACT IS 39 VALUED AT ONE HUNDRED THOUSAND DOLLARS OR MORE AND IS KNOWN AT THE TIME 40 OF THE AWARD OF THE STATE CONTRACT TO THE VENDOR. 41 F. "SYSTEM" SHALL MEAN THE ON-LINE SOFTWARE, DATA AND RELATED 42 RESOURCES MAINTAINED BY THE COMPTROLLER TO COMPILE VENDOR RESPONSIBILITY 43 INFORMATION. 44 G. "TERMS OF SERVICE" SHALL MEAN THE TERMS AND CONDITIONS DEVELOPED BY 45 THE STATE COMPTROLLER AND AGREED TO BY EACH AUTHORIZED USER PRIOR TO 46 GAINING ACCESS TO ONLINE SERVICES. TERMS OF SERVICE SHALL INCLUDE A 47 DESCRIPTION OF THE SERVICES, OBLIGATIONS OF THE STATE COMPTROLLER AND 48 THE AUTHORIZED USER, A DESCRIPTION OF THE STATE COMPTROLLER'S PRIVACY 49 POLICY, AUTHORIZED USER CODE OF CONDUCT, AND INDEMNITY FOR THE STATE 50 COMPTROLLER AND THE STATE OF NEW YORK. TERMS OF SERVICE ARE SUBJECT TO 51 CHANGE AS PRESCRIBED BY THE STATE COMPTROLLER. AUTHORIZED USERS MAY 52 VIEW CHANGES VIA THE STATE COMPTROLLER'S INTERNET SITE. 53 H. "VENDOR" SHALL INCLUDE ANY PERSON, PARTNERSHIP, CORPORATION OR 54 LIMITED LIABILITY COMPANY OR ANY BUSINESS ENTITY BIDDING ON A STATE 55 PROCUREMENT OR OTHERWISE AWARDED A STATE CONTRACT. A. 7513 3 1 I. "VENDOR RESPONSIBILITY" SHALL MEAN THAT A VENDOR HAS THE CAPACITY 2 TO FULLY PERFORM THE TERMS OF A CONTRACT AND THE INTEGRITY AND BUSINESS 3 ETHICS TO JUSTIFY AN AWARD OF PUBLIC DOLLARS. A DETERMINATION OF VENDOR 4 RESPONSIBILITY SHALL INCLUDE CONSIDERATION OF FACTORS INCLUDING, BUT NOT 5 LIMITED TO, FINANCIAL AND ORGANIZATIONAL CAPACITY, LEGAL AUTHORITY, 6 INTEGRITY AND PAST PERFORMANCE ON GOVERNMENTAL CONTRACTS. 7 2. A. STATE AGENCIES SHALL ENROLL WITH THE STATE COMPTROLLER TO ACCESS 8 THE SYSTEM MAINTAINED BY THE COMPTROLLER TO COMPILE VENDOR RESPONSIBIL- 9 ITY INFORMATION. STATE AGENCIES SHALL AGREE TO AND ABIDE BY THE TERMS OF 10 SERVICE FOR SUCH SYSTEM AS THE STATE COMPTROLLER DEEMS NECESSARY. 11 B. FOR EACH CONTRACT OR SUBCONTRACT BETWEEN A VENDOR AND A SUBCONTRAC- 12 TOR WHERE, PURSUANT TO LAW OR BY DIRECTION OF THE STATE AGENCY, DISCLO- 13 SURE FOR VENDOR RESPONSIBILITY IS REQUIRED, THE STATE AGENCY SHALL: 14 (I) PROVIDE NOTICE TO VENDORS BIDDING FOR PROCUREMENTS ADMINISTERED BY 15 THE STATE AGENCY THAT ANY VENDOR AND SUBCONTRACTOR, SUBMITTING A VENDOR 16 RESPONSIBILITY QUESTIONNAIRE SHALL DO SO VIA THE SYSTEM MAINTAINED TO 17 COMPILE VENDOR RESPONSIBILITY INFORMATION; 18 (II) PROVIDE VENDORS WITH INSTRUCTIONS ON HOW TO ELECTRONICALLY ACCESS 19 THE SYSTEM AND PROVIDE CONTACT INFORMATION FOR ASSISTANCE WITH ENROLL- 20 MENT. THIS INFORMATION SHALL BE MADE AVAILABLE PRIOR TO THE TIME WHEN 21 VENDORS ARE REQUIRED TO SUBMIT DISCLOSURE FOR VENDOR RESPONSIBILITY; AND 22 (III) ACCESS THE SYSTEM TO OBTAIN AND EVALUATE ANY DATA SUBMITTED BY A 23 VENDOR PROPOSED FOR CONTRACT AWARD. STATE AGENCIES SHALL ENSURE THE 24 SUBMISSION FILED BY THE VENDOR MEETS SUCH SYSTEM'S TIMELINESS STANDARDS. 25 SUCH PROVISIONS APPLY REGARDLESS OF WHETHER THE CONTRACT IS SUBJECT TO 26 PRE-REVIEW AND APPROVAL BY THE STATE COMPTROLLER. 27 C. FOR CONTRACTS WHERE VENDOR DISCLOSURE IS NOT OTHERWISE REQUIRED, 28 THE STATE AGENCY AT ITS DISCRETION, MAY REQUIRE VENDORS BIDDING ON 29 PROCUREMENTS, AND/OR SUBCONTRACTORS, TO SUBMIT A VENDOR RESPONSIBILITY 30 QUESTIONNAIRE VIA THE SYSTEM. NOTHING CONTAINED IN THIS PARAGRAPH SHALL 31 BE CONSTRUED TO ALTER THE EXISTING AUTHORITY OF THE STATE COMPTROLLER TO 32 REQUIRE THE SUBMISSION OF A VENDOR RESPONSIBILITY QUESTIONNAIRE IN 33 CONJUNCTION WITH HIS OR HER DUTY TO REVIEW AND APPROVE STATE CONTRACTS 34 PRIOR TO SUCH CONTRACTS BECOMING EFFECTIVE. 35 D. STATE AGENCIES SHALL PROVIDE ACCESS TO THE SYSTEM TO USERS WITHIN 36 THEIR ORGANIZATION, AS DEEMED APPROPRIATE BY THE HEAD OF THE STATE AGEN- 37 CY OR HIS OR HER DESIGNEE. STATE AGENCY USERS PROVIDED WITH SUCH ACCESS 38 SHALL BE THOSE INDIVIDUALS, WHO, AS PART OF THEIR OFFICIAL JOB DUTIES, 39 ARE REQUIRED TO ASSESS AND/OR REVIEW VENDOR RESPONSIBILITY FOR THE AGEN- 40 CY'S CONTRACTS. 41 S 3. Subdivisions 7 and 10 of section 160 of the state finance law, 42 subdivision 7 as amended by section 30 of part L of chapter 55 of the 43 laws of 2012 and subdivision 10 as added by chapter 83 of the laws of 44 1995, are amended to read as follows: 45 7. "Service" or "services" means the performance of a task or tasks 46 and may include a material good or a quantity of material goods, and 47 which is the subject of any purchase or other exchange. For the purposes 48 of this article, INFORMATION technology shall be deemed a service. 49 Services, as defined in this article, shall not apply to those contracts 50 for architectural, engineering or surveying services, or those contracts 51 approved in accordance with article eleven-B of this chapter. 52 10. "[Technology] INFORMATION TECHNOLOGY" means either a good or a 53 service or a combination thereof, [that results in a technical method of 54 achieving a practical purpose or in improvements in productivity] USED 55 IN THE APPLICATION OF ANY COMPUTER OR ELECTRONIC INFORMATION EQUIPMENT 56 OR INTERCONNECTED SYSTEM THAT IS USED IN THE ACQUISITION, STORAGE, A. 7513 4 1 MANIPULATION, MANAGEMENT, MOVEMENT, CONTROL, DISPLAY, SWITCHING, INTER- 2 CHANGE, TRANSMISSION, OR RECEPTION OF DATA INCLUDING, BUT NOT LIMITED 3 TO, HARDWARE, SOFTWARE, FIRMWARE, PROGRAMS, SYSTEMS, NETWORKS, INFRAS- 4 TRUCTURE, MEDIA, AND RELATED MATERIAL USED TO AUTOMATICALLY AND ELEC- 5 TRONICALLY COLLECT, RECEIVE, ACCESS, TRANSMIT, DISPLAY, STORE, RECORD, 6 RETRIEVE, ANALYZE, EVALUATE, PROCESS, CLASSIFY, MANIPULATE, MANAGE, 7 ASSIMILATE, CONTROL, COMMUNICATE, EXCHANGE, CONVERT, CONVERGE, INTER- 8 FACE, SWITCH, OR DISSEMINATE DATA OF ANY KIND OR FORM. Goods may be 9 either new or used. 10 S 4. Paragraphs g and i of subdivision 2 of section 161 of the state 11 finance law, as added by chapter 83 of the laws of 1995, are amended to 12 read as follows: 13 g. Consult with and advise the commissioner on strategic INFORMATION 14 technology investments that will facilitate electronic access to the 15 terms and conditions of existing procurement contracts, promote elec- 16 tronic commerce including, but not limited to, payment to vendors, 17 promote and enhance the efficiency of the procurement of products and 18 services by or for state agencies and produce useful information that 19 supports state procurement operations, management, analysis and decision 20 making including, but not limited to, data concerning the status and use 21 of procurement contracts and the number and type of contracts and award 22 recipients; 23 i. Establish and, from time to time, amend guidelines for the procure- 24 ment of services and INFORMATION technology in accordance with the 25 provisions of this article. Such guidelines shall ensure the wise and 26 prudent use of public money in the best interest of the taxpayers of the 27 state; guard against favoritism, improvidence, extravagance, fraud and 28 corruption; and ensure that service contracts are awarded on the basis 29 of best value, including, but not limited to, the following criteria: 30 quality, cost, and efficiency; 31 S 5. Paragraph k of subdivision 1 and subdivisions 6 and 7 of section 32 163 of the state finance law, paragraph k of subdivision 1 as added by 33 section 36 of part L of chapter 55 of the laws of 2012, subdivision 6 as 34 amended by section 1 of part P of chapter 55 of the laws of 2013 and 35 subdivision 7 as amended by section 10 of part L of chapter 55 of the 36 laws of 2012, are amended to read as follows: 37 k. "Authorized user" or "non-state agency purchaser" means (i) any 38 officer, body or agency of the state or of a political subdivision or a 39 district therein, or fire company or volunteer ambulance service as such 40 are defined in section one hundred of the general municipal law, to make 41 purchases of commodities, services and INFORMATION technology through 42 the office of general services' centralized contracts, pursuant to the 43 provisions of section one hundred four of the general municipal law; 44 (ii) any county extension service association as authorized under subdi- 45 vision eight of section two hundred twenty-four of the county law; (iii) 46 any association or other entity as specified in and in accordance with 47 section one hundred nine-a of the general municipal law; (iv) any asso- 48 ciation, consortium or group of privately owned or municipal, federal or 49 state owned or operated hospitals, medical schools, other health related 50 facilities or voluntary ambulance services, which have entered into a 51 contract and made mutual arrangements for the joint purchase of commod- 52 ities, services and INFORMATION technology pursuant to section twenty- 53 eight hundred three-a of the public health law; (v) any institution for 54 the instruction of the deaf or of the blind listed in section forty-two 55 hundred one of the education law; (vi) any qualified non-profit-making 56 agency for the blind approved by the commissioner of the office of chil- A. 7513 5 1 dren and family services or the office of temporary and disability 2 assistance; (vii) any qualified charitable non-profit-making agency for 3 the severely disabled approved by the commissioner of education; (viii) 4 any hospital or residential health care facility as defined in section 5 twenty-eight hundred one of the public health law; (ix) any private 6 not-for-profit mental hygiene facility as defined in section 1.03 of the 7 mental hygiene law; (x) any public authority or public benefit corpo- 8 ration of the state, including the port authority of New York and New 9 Jersey and the interstate environmental commission; (xi) any public 10 library, association library, library system, cooperative library 11 system, the New York Library Association, and the New York State Associ- 12 ation of Library Boards or any other library except those which are 13 operated by for profit entities; (xii) any other association or entity 14 as specified in state law, to make purchases of commodities, services 15 and INFORMATION technology through the office of general services' 16 centralized contracts. Such qualified non-profit-making agencies for the 17 blind and severely disabled may make purchases from the correctional 18 industries program of the department of corrections and community super- 19 vision subject to rules pursuant to the correction law. 20 6. Discretionary buying thresholds. Pursuant to guidelines established 21 by the state procurement council: the commissioner may purchase services 22 and commodities in an amount not exceeding eighty-five thousand dollars 23 without a formal competitive process; state agencies may purchase 24 services and commodities in an amount not exceeding fifty thousand 25 dollars without a formal competitive process; and state agencies may 26 purchase commodities or services from small business concerns or those 27 certified pursuant to article fifteen-A of the executive law, or commod- 28 ities or INFORMATION technology that are recycled or remanufactured, or 29 commodities that are food, including milk and milk products, grown, 30 produced or harvested in New York state in an amount not exceeding two 31 hundred thousand dollars without a formal competitive process. 32 7. Method of procurement. Consistent with the requirements of subdivi- 33 sions three and four of this section, state agencies shall select among 34 permissible methods of procurement including, but not limited to, an 35 invitation for bid, request for proposals or other means of solicitation 36 pursuant to guidelines issued by the state procurement council. State 37 agencies may accept bids electronically including submission of the 38 statement of non-collusion required by section one hundred thirty-nine-d 39 of this chapter and, starting April first, two thousand twelve, and 40 ending March thirty-first, two thousand fifteen, may, for commodity, 41 service and INFORMATION technology contracts require electronic 42 submission as the sole method for the submission of bids for the solic- 43 itation. State agencies shall undertake no more than eighty-five such 44 electronic bid solicitations, none of which shall be reverse auctions, 45 prior to April first, two thousand fifteen. In addition, state agencies 46 may conduct up to twenty reverse auctions through electronic means, 47 prior to April first, two thousand fifteen. Prior to requiring the elec- 48 tronic submission of bids, the agency shall make a determination, which 49 shall be documented in the procurement record, that electronic 50 submission affords a fair and equal opportunity for offerers to submit 51 responsive offers. Within thirty days of the completion of the eighty- 52 fifth electronic bid solicitation, or by April first, two thousand 53 fifteen, whichever is earlier, the commissioner shall prepare a report 54 assessing the use of electronic submissions and make recommendations 55 regarding future use of this procurement method. In addition, within 56 thirty days of the completion of the twentieth reverse auction through A. 7513 6 1 electronic means, or by April first, two thousand fifteen, whichever is 2 earlier, the commissioner shall prepare a report assessing the use of 3 reverse auctions through electronic means and make recommendations 4 regarding future use of this procurement method. Such reports shall be 5 published on the website of the office of general services. Except where 6 otherwise provided by law, procurements shall be competitive, and state 7 agencies shall conduct formal competitive procurements to the maximum 8 extent practicable. State agencies shall document the determination of 9 the method of procurement and the basis of award in the procurement 10 record. Where the basis for award is the best value offer, the state 11 agency shall document, in the procurement record and in advance of the 12 initial receipt of offers, the determination of the evaluation criteria, 13 which whenever possible, shall be quantifiable, and the process to be 14 used in the determination of best value and the manner in which the 15 evaluation process and selection shall be conducted. 16 S 6. Paragraph (a) of subdivision 2 of section 112 of the state 17 finance law, as amended by section 18 of part L of chapter 55 of the 18 laws of 2012, is amended to read as follows: 19 (a) Before any contract made for or by any state agency, department, 20 board, officer, commission, or institution, except the office of general 21 services, shall be executed or become effective, whenever such contract 22 exceeds fifty thousand dollars in amount and before any contract made 23 for or by the office of general services shall be executed or become 24 effective, whenever such contract exceeds eighty-five thousand dollars 25 in amount, it shall first be approved by the comptroller and filed in 26 his or her office, with the exception of contracts established as a 27 centralized contract through the office of general services [and 28 purchase orders or other procurement transactions issued under such 29 centralized contracts] THAT WERE NOT AWARDED PURSUANT TO SUBDIVISION 30 SIXTEEN OF SECTION ONE HUNDRED SIXTY-THREE OF THIS CHAPTER. The comp- 31 troller shall make a final written determination with respect to 32 approval of such contract within ninety days of the submission of such 33 contract to his or her office unless the comptroller shall notify, in 34 writing, the state agency, department, board, officer, commission, or 35 institution, prior to the expiration of the ninety day period, and for 36 good cause, of the need for an extension of not more than fifteen days, 37 or a reasonable period of time agreed to by such state agency, depart- 38 ment, board, officer, commission, or institution and provided, further, 39 that such written determination or extension shall be made part of the 40 procurement record pursuant to paragraph f of subdivision one of section 41 one hundred sixty-three of this chapter. 42 S 7. Section 163 of the state finance law is amended by adding a new 43 subdivision 16 to read as follows: 44 16. ALTERNATIVE PROCUREMENT METHODS FOR THE ACQUISITION OF NON-CON- 45 STRUCTION RELATED COMMODITIES AND SERVICES, OR INFORMATION TECHNOLOGY. 46 A. WHEN THE COMMISSIONER OR A STATE AGENCY DETERMINES THAT IT IS IN THE 47 BEST INTEREST OF THE STATE TO DEVELOP A PROCUREMENT METHOD NOT AUTHOR- 48 IZED BY THIS SECTION FOR NON-CONSTRUCTION RELATED COMMODITIES AND 49 SERVICES, OR INFORMATION TECHNOLOGY, THE COMMISSIONER OR STATE AGENCY IS 50 HEREBY AUTHORIZED TO DEVELOP AND USE SUCH METHOD FOR A SPECIFIC CONTRACT 51 AWARD. SUCH DETERMINATION SHALL BE MADE IN WRITING AND SHALL INCLUDE 52 DOCUMENTATION FOR THE PROCUREMENT RECORD THAT SUCH ALTERNATIVE PROCURE- 53 MENT METHOD: (I) WOULD SERVE THE INTEREST OF THE STATE BETTER THAN OTHER 54 METHODS CURRENTLY AVAILABLE UNDER THIS SECTION; (II) CAN BE APPLIED ON A 55 COMPETITIVE, FAIR AND EQUITABLE BASIS; AND (III) CONTAINS AN APPROPRIATE 56 EVALUATION METHODOLOGY THAT CONSIDERS BOTH COST AND QUALITATIVE EVALU- A. 7513 7 1 ATION FACTORS. SUCH ALTERNATIVE PROCUREMENT METHOD SHALL BE SUBJECT TO 2 ALL OTHER APPLICABLE PROVISIONS OF THIS SECTION. THE COMMISSIONER OR A 3 STATE AGENCY MAY NOT UNDERTAKE AN ALTERNATIVE PROCUREMENT METHOD UNTIL 4 THE COMPTROLLER HAS DETERMINED THAT THE PROPOSED ALTERNATIVE PROCUREMENT 5 METHOD IS IN THE BEST INTEREST OF THE STATE; CAN BE APPLIED ON A COMPET- 6 ITIVE, FAIR AND EQUITABLE BASIS; AND UTILIZES AN APPROPRIATE EVALUATION 7 METHODOLOGY THAT CONSIDERS BOTH COST AND QUALITATIVE EVALUATION FACTORS. 8 B. WHEN USING AN ALTERNATIVE PROCUREMENT METHOD AUTHORIZED BY THIS 9 SUBDIVISION, THE COMMISSIONER OR AGENCY SHALL INCLUDE IN ITS SOLICITA- 10 TION A DETAILED DESCRIPTION OF THE PROPOSED METHOD OF AWARD. IN ADVANCE 11 OF THE INITIAL RECEIPT OF OFFERS OR BIDS, THE COMMISSIONER OR STATE 12 AGENCY SHALL DETERMINE AND DOCUMENT IN THE PROCUREMENT RECORD THE EVALU- 13 ATION CRITERIA AND PROCESS TO BE USED IN THE DETERMINATION OF THE 14 SPECIFIC CONTRACT AWARD AND THE PROCESS BY WHICH THE EVALUATION AND 15 SELECTION SHALL BE CONDUCTED. IN ADDITION TO THE REQUIREMENTS SET FORTH 16 IN PARAGRAPH G OF SUBDIVISION NINE OF THIS SECTION, THE PROCUREMENT 17 RECORD SHALL DOCUMENT THE BASIS UPON WHICH THE AGENCY HAS DETERMINED 18 THAT POTENTIAL VENDORS WILL BE ABLE TO RESPOND WITH VIABLE BIDS TO SUCH 19 ALTERNATIVE PROCUREMENT. 20 C. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION FIVE OF SECTION THREE 21 HUNDRED FIFTY-FIVE OF THE EDUCATION LAW TO THE CONTRARY OR SECTION 22 SIXTY-TWO HUNDRED EIGHTEEN OF THE EDUCATION LAW, BEFORE ANY CONTRACT 23 AWARDED UNDER THIS SECTION WHICH EXCEEDS FIFTY THOUSAND DOLLARS IN 24 AMOUNT BECOMES EFFECTIVE IT MUST BE APPROVED BY THE COMPTROLLER AND 25 FILED IN HIS OR HER OFFICE. 26 D. FOR EACH PROCUREMENT AWARDED PURSUANT TO THIS SECTION, THE COMMIS- 27 SIONER OR STATE AGENCY SHALL SUBMIT TO THE GOVERNOR, THE COMPTROLLER AND 28 THE HEADS OF THE FISCAL COMMITTEES OF EACH HOUSE OF THE STATE LEGISLA- 29 TURE NO LATER THAN THE MID-POINT OF THE INITIAL TERM OF THE RESULTANT 30 CONTRACT A REPORT ASSESSING THE VALIDITY OF THE PROCUREMENT METHOD AND 31 COMPARING ITS RESULTS TO PROCUREMENT METHODS FOR COMMODITIES AND 32 SERVICES OR INFORMATION TECHNOLOGY. 33 S 8. Section 163 of the state finance law is amended by adding a new 34 subdivision 17 to read as follows: 35 17. COMPETITIVE NEGOTIATION. A. WHERE THE BASIS OF AWARD IS BEST VALUE 36 AND AFTER COMPLETING AN INITIAL EVALUATION AND SCORING, A STATE AGENCY 37 MAY CHOOSE TO EITHER MAKE AN AWARD TO THE BEST VALUE OFFERER PURSUANT TO 38 SUBDIVISION FOUR OF THIS SECTION OR UNDERTAKE COMPETITIVE NEGOTIATIONS 39 WITH ALL OFFERERS OF PROPOSALS SUSCEPTIBLE OF BEING SELECTED FOR 40 CONTRACT AWARD, SO LONG AS THE AGENCY RESERVES THE RIGHT TO CONDUCT SUCH 41 COMPETITIVE NEGOTIATIONS IN THE SOLICITATION. THE NEGOTIATIONS SHALL BE 42 CONDUCTED AS PROVIDED IN PARAGRAPH D OF THIS SUBDIVISION. 43 B. COMPETITIVE NEGOTIATION MAY ONLY BE USED WHERE: 44 (I) AT LEAST TWO OFFERERS ARE DEEMED SUSCEPTIBLE OF BEING SELECTED FOR 45 CONTRACT AWARD; 46 (II) IN THE EVENT THAT THE SOLICITATION INCLUDES OPTIONAL COMPONENTS, 47 THE SOLICITATION SHALL REQUIRE ALL OFFERERS TO PROVIDE A PROPOSAL FOR 48 ALL OPTIONS OR OTHERWISE BE DEEMED NONRESPONSIVE; AND 49 (III) THE AGENCY HAS DETERMINED THAT USE OF COMPETITIVE NEGOTIATION 50 WILL MAXIMIZE THE AGENCY'S ABILITY TO OBTAIN BEST VALUE, BASED ON THE 51 AGENCY'S NEED AND THE SPECIFICATIONS SET FORTH IN THE SOLICITATION. 52 C. THE AGENCY MUST DOCUMENT IN THE PROCUREMENT RECORD AND IN ADVANCE 53 OF THE INITIAL RECEIPT OF OFFERS: 54 (I) THE METHODOLOGY, WHICH SHALL BE QUANTIFIABLE AND BASED ON A 55 COMPARISON OF THE PROPOSALS' PRICE AND TECHNICAL MERIT, THAT WILL BE A. 7513 8 1 EMPLOYED TO ARRIVE AT A COMPETITIVE RANGE THAT WILL DETERMINE WHICH 2 PROPOSALS ARE TO BE CONSIDERED SUSCEPTIBLE TO AWARD; AND 3 (II) A FAIR AND IMPARTIAL NEGOTIATION PROCEDURE, FORMULATED WITH THE 4 GOAL OF ENSURING SUSTAINED COMPETITION UNTIL AN AWARD IS RENDERED AND 5 OBTAINING THE BEST VALUE FOR THE STATE. 6 D. THE AGENCY SHALL CONDUCT WRITTEN OR ORAL NEGOTIATIONS WITH ALL 7 RESPONSIBLE OFFERERS WHO SUBMIT PROPOSALS IN THE COMPETITIVE RANGE. IN 8 THE COURSE OF SUCH NEGOTIATIONS, THE AGENCY SHALL: 9 (I) ADVISE THE OFFERER OF WAYS IN WHICH ITS PROPOSAL MAY BE IMPROVED 10 SO THAT THE OFFERER IS GIVEN AN OPPORTUNITY TO BETTER MEET THE AGENCY'S 11 NEEDS; 12 (II) CLARIFY ANY UNCERTAINTIES, AMBIGUITIES OR NON-MATERIAL DEVIATIONS 13 IN THE PROPOSAL; 14 (III) ADVISE THE OFFERER OF ANY TECHNICAL COMPONENTS IN ITS PROPOSAL 15 THAT MAY NOT BE NECESSARY TO SATISFY THE AGENCY'S REQUIREMENTS AND 16 REQUEST MODIFICATIONS AS APPROPRIATE; 17 (IV) PROVIDE THE OFFERER A REASONABLE OPPORTUNITY TO SUBMIT ANY COST, 18 TECHNICAL OR OTHER REVISIONS TO ITS PROPOSAL IN RESPONSE TO ISSUES IDEN- 19 TIFIED DURING NEGOTIATIONS; AND 20 (V) DOCUMENT ANY ORAL NEGOTIATIONS FOR THE PROCUREMENT RECORD. 21 E. NEGOTIATIONS MAY BE TAILORED TO EACH OFFERER'S PROPOSAL PROVIDED, 22 HOWEVER, SUCH NEGOTIATIONS SHALL BE CONDUCTED WITH EACH OFFERER WITHIN 23 THE COMPETITIVE RANGE WITHOUT DISCLOSING INFORMATION CONCERNING ANY 24 OTHER OFFERERS' PROPOSALS OR THE EVALUATION PROCESS. NEGOTIATIONS SHALL 25 CULMINATE IN A TECHNICAL SOLUTION FROM EACH OFFERER REMAINING WITHIN THE 26 COMPETITIVE RANGE THAT IS DEEMED ACCEPTABLE TO MEET THE AGENCY'S NEED AS 27 SET FORTH IN THE SOLICITATION. AFTER DISCUSSION OF THESE TECHNICAL 28 SOLUTIONS IS COMPLETED, THE AGENCY SHALL SOLICIT A BEST AND FINAL PRICE 29 PROPOSAL FROM ALL OFFERERS WITHIN THE COMPETITIVE RANGE. THE BEST AND 30 FINAL PRICE SOLICITATION SHALL ENSURE THAT ALL OFFERERS ARE AFFORDED AN 31 EQUAL OPPORTUNITY TO RESPOND WITHIN A SPECIFIED PERIOD OF TIME. 32 F. WHERE AN AGENCY CHOOSES TO UNDERTAKE COMPETITIVE NEGOTIATIONS 33 INSTEAD OF MAKING A BEST VALUE AWARD AFTER AN INITIAL EVALUATION AND 34 SCORING, THE FINAL AWARD SHALL BE MADE TO THE LOWEST RESPONSIBLE OFFERER 35 AFTER RECEIVING A BEST AND FINAL PRICE ON A REVISED ACCEPTABLE PROPOSAL. 36 S 9. Subdivision 9 of section 163 of the state finance law is amended 37 by adding a new paragraph c-1 to read as follows: 38 C-1. WHERE A STATE AGENCY DETERMINES THAT NON-MATERIAL CHANGES TO THE 39 SPECIFICATIONS AS SET FORTH IN THE SOLICITATION WOULD BE IN THE BEST 40 INTEREST OF THE STATE AND, WHEN PROVIDED FOR IN THE SOLICITATION, STATE 41 AGENCIES MAY REQUEST BEST AND FINAL OFFERS, WHICH SHALL BE IN WRITING 42 AND SOLICITED IN THE SAME MANNER FROM ALL OFFERERS DETERMINED TO BE 43 SUSCEPTIBLE OF BEING SELECTED FOR CONTRACT AWARD, WITH THE INTENT OF 44 ALLOWING AN OFFERER TO REVISE ITS COST; PROVIDED, HOWEVER, THAT A STATE 45 AGENCY MAY NOT MAKE A MODIFICATION TO THE SOLICITATION IF SUCH MODIFICA- 46 TION WOULD PREJUDICE ANY BIDDER OR POTENTIAL BIDDER AND, PROVIDED 47 FURTHER, THAT NO BEST AND FINAL OFFER MAY BE ACCEPTED OR CONSIDERED BY A 48 STATE AGENCY UNLESS SUCH BEST AND FINAL OFFER IS SUBMITTED IN RESPONSE 49 TO A REQUEST BY THE STATE AGENCY. 50 S 10. Subdivision 7 of section 162 of the state finance law, as 51 amended by chapter 426 of the laws of 2002, is amended to read as 52 follows: 53 7. Partnering with preferred sources. The commissioner of the appro- 54 priate appointing agency as identified in paragraph e of subdivision six 55 of this section, shall conduct one or more pilot studies whereby a 56 private vendor may be accorded preferred source status for purposes of A. 7513 9 1 this section. The pilot studies shall seek to ascertain the benefits of 2 partnerships between private industry and those entities accorded 3 preferred source status as specified in this section. Preferred source 4 status under a partnering arrangement may only be accorded when a 5 proposal to a soliciting agency for commodities or services includes a 6 binding agreement with one or more of the entities accorded preferred 7 source status under this section AND WHERE AT LEAST FIFTY PERCENT OF ALL 8 LABOR INVOLVED IN DELIVERING SERVICES OR COMMODITIES TO THE STATE BY THE 9 PRIVATE VENDOR IS BEING PROVIDED DIRECTLY BY THE INDIVIDUALS OF THE 10 CLASS OF PREFERRED SOURCE INCLUDING, BUT NOT LIMITED TO, INMATES, THE 11 DISABLED, VETERANS AND THE BLIND. PRIVATE VENDOR OPPORTUNITIES FOR 12 PREFERRED SOURCES SHALL BE COMPETITIVELY AWARDED AND THE PROCUREMENT 13 SUMMARY, VENDOR RESPONSIBILITY SUMMARY AND CONTRACT AGREEMENT SHALL BE 14 BROUGHT BEFORE THE PROCUREMENT COUNCIL FOR REVIEW. THE STATE SHALL NOT 15 ACCESS THE SERVICES OF SUCH PRIVATE VENDOR UNLESS A MAJORITY OF THE 16 COUNCIL APPROVES. The binding agreement shall provide that: 17 (i) The preferred source shall perform the majority of the work neces- 18 sary to such offering, and 19 (ii) The partnering proposal includes bona fide long term employment 20 opportunities for persons who could otherwise be new clients of an enti- 21 ty previously accorded preferred source status herein, and 22 (iii) The partnering proposal offers the solicited services or commod- 23 ities at a price less than the price that otherwise would be charged by 24 a preferred source. 25 S 11. Paragraph b of subdivision 3 of section 162 of the state finance 26 law, as amended by section 164 of subpart B of part C of chapter 62 of 27 the laws of 2011, is amended to read as follows: 28 b. After January first, nineteen hundred ninety-six, upon the applica- 29 tion of the commissioner of corrections and community supervision, the 30 commissioner of the office of children and family services, the office 31 of temporary and disability assistance, the commissioner of mental 32 health or the commissioner of education, or a non-profit-making facili- 33 tating agency designated by one of the said commissioners pursuant to 34 paragraph e of subdivision six of this section, the state procurement 35 council may recommend that the commissioner: (i) add commodities or 36 services to, or (ii) in order to insure that such list reflects current 37 production and/or availability of commodities and services, delete at 38 the request of a preferred source, commodities or services from, the 39 list established by paragraph a of this subdivision. The council may 40 make a non-binding recommendation to the relevant preferred source to 41 delete a commodity or service from such list. Additions may be made only 42 for new services or commodities, or for services or commodities that are 43 substantially different from those reflected on said list for that 44 provider. The decision to recommend the addition of services or commod- 45 ities shall be based upon a review of relevant factors as determined by 46 the council including costs and benefits to be derived from such addi- 47 tion and shall include an analysis by the office of general services 48 conducted pursuant to subdivision six of this section; PROVIDED, HOWEV- 49 ER, THAT THE PROCUREMENT COUNCIL SHALL NOT RECOMMEND TO THE COMMISSIONER 50 ANY APPLICATION THAT DOES NOT INCLUDE AT LEAST FIFTY PERCENT OF ALL 51 LABOR INVOLVED IN DELIVERING SERVICES OR COMMODITIES TO THE STATE BEING 52 PROVIDED DIRECTLY BY THE INDIVIDUALS OF THE CLASS OF PREFERRED SOURCE 53 INCLUDING, BUT NOT LIMITED TO, INMATES, THE DISABLED, VETERANS AND THE 54 BLIND. Unless the state procurement council shall make a recommendation 55 to the commissioner on any such application within one hundred twenty 56 days of receipt thereof, such application shall be deemed recommended. A. 7513 10 1 In the event that the state procurement council shall deny any such 2 application, the commissioner or non-profit-making agency which submit- 3 ted such application may, within thirty days of such denial, appeal such 4 denial to the commissioner of general services who shall review all 5 materials submitted to the state procurement council with respect to 6 such application and who may request such further information or materi- 7 al as is deemed necessary. Within sixty days of receipt of all informa- 8 tion or materials deemed necessary, the commissioner shall render a 9 written final decision on the application which shall be binding upon 10 the applicant and upon the state procurement council. 11 S 12. Subdivisions 1 and 2 of section 137 of the state finance law, 12 subdivision 1 as separately amended by section 17 of part MM of chapter 13 57 and chapter 619 of the laws of 2008 and subdivision 2 as amended by 14 chapter 137 of the laws of 1985, are amended to read as follows: 15 1. (A) In addition to other bond or bonds, if any, required by law for 16 the completion of a work specified in a contract for the prosecution of 17 a public improvement for the state of New York a municipal corporation, 18 a public benefit corporation or a commission appointed pursuant to law, 19 or in the absence of any such requirement, the comptroller may or the 20 other appropriate official, respectively, shall nevertheless require 21 prior to the approval of any such contract a bond guaranteeing prompt 22 payment of moneys due to all persons furnishing labor or materials to 23 the contractor or any subcontractors in the prosecution of the work 24 provided for in such contract. Whenever a municipal corporation issues a 25 permit subject to compliance with section two hundred twenty of the 26 labor law, such permittee or its contractor or subcontractors furnishing 27 workers shall post a payment bond subject to this section. [Provided, 28 however, that] 29 (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH A OF THIS SUBDIVISION, 30 all performance bonds and payment bonds may, at the discretion of the 31 head of the state agency, public benefit corporation or commission, or 32 his or her designee, be dispensed with for the completion of a work 33 specified in a contract for the prosecution of a public improvement for 34 the state of New York for which bids are solicited where the aggregate 35 amount of the contract is under [one] FIVE hundred thousand dollars 36 [and]; provided [further], that in a case where the contract is not 37 subject to the multiple contract award requirements of section one 38 hundred thirty-five of this article, such requirements may be dispensed 39 with where the head of the state agency, public benefit corporation or 40 commission finds it to be in the public interest and where the aggregate 41 amount of the contract awarded or to be awarded is less than two hundred 42 thousand dollars. Provided further, that in a case where a performance 43 or payment bond is dispensed with, twenty per centum may be retained 44 from each progress payment or estimate until the entire contract work 45 has been completed and accepted, at which time the head of the state 46 agency, public benefit corporation or commission shall, pending the 47 payment of the final estimate, pay not to exceed seventy-five per centum 48 of the amount of the retained percentage. THE PROVISIONS OF THIS PARA- 49 GRAPH SHALL NOT APPLY TO ANY PERFORMANCE BONDS REQUIRED IN CONNECTION 50 WITH A MAJOR INSTALLATION PURSUANT TO PARAGRAPH D OF SUBDIVISION TEN OF 51 SECTION ONE HUNDRED SIXTY-THREE OF THIS CHAPTER. FOR THE PURPOSES OF 52 THIS PARAGRAPH "MAJOR INSTALLATION" SHALL HAVE THE SAME MEANING AS 53 PROVIDED IN SECTION ONE HUNDRED SIXTY-THREE OF THIS CHAPTER. 54 2. A copy of such payment bond shall be kept in the office of the head 55 of the department or bureau having charge of the public improvement in 56 connection with which the bond was given and a copy shall also be kept A. 7513 11 1 in the office of the comptroller [or other appropriate official]; such 2 copies shall be open to public inspection. 3 S 13. Subdivision 1 of section 163 of the state finance law is amended 4 by adding a new paragraph l to read as follows: 5 L. "MAJOR INSTALLATION" MEANS ANY PROJECT REQUIRING BUILDING 6 CONSTRUCTION OR SITE WORK OR AN INSTALLATION WHERE THE TOTAL CHARACTER 7 OF THE WORK IS NOT CONSTRUCTION BUT INSTEAD THE PURCHASE, PURSUANT TO 8 THIS SECTION, AND INSTALLATION OF A LARGE PIECE OF EQUIPMENT WHERE THE 9 VALUE OF SUCH PURCHASE IS ONE MILLION DOLLARS OR MORE. 10 S 14. Paragraph d of subdivision 10 of section 163 of the state 11 finance law, as added by chapter 83 of the laws of 1995, is amended to 12 read as follows: 13 d. It shall be in the discretion of the commissioner or state agency 14 to require a bond or other guarantee of performance, and to approve the 15 amount, form and sufficiency thereof; PROVIDED, HOWEVER, THAT IN THE 16 CASE OF A MAJOR INSTALLATION, SUCH BOND OR GUARANTEE OF PERFORMANCE 17 SHALL BE REQUIRED, AND THE COMMISSIONER OR STATE AGENCY MAY, IN ITS 18 DISCRETION, REQUIRE A BOND GUARANTEEING THE PROMPT PAYMENT OF MONEYS AS 19 SET FORTH IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION ONE HUNDRED THIR- 20 TY-SEVEN OF THIS CHAPTER. 21 S 15. Paragraph e of subdivision 10 of section 163 of the state 22 finance law, as amended by chapter 137 of the laws of 2008, is amended 23 to read as follows: 24 e. The commissioner may authorize purchases required by state agencies 25 or other authorized purchasers by letting a contract pursuant to a writ- 26 ten agreement, or by approving the use of a contract let by any depart- 27 ment, agency or instrumentality of the United States government and/or 28 any department, agency, office, political subdivision or instrumentality 29 of any state or states. A state agency purchaser shall document in the 30 procurement record its rationale for the use of a contract let by any 31 department, agency or instrumentality of the United States government or 32 any department, agency, office, political subdivision or instrumentality 33 of any other state or states. Such rationale shall include, but need not 34 be limited to, a determination of need, a consideration of the procure- 35 ment method by which the contract was awarded, an analysis of alterna- 36 tive procurement sources including an explanation why a competitive 37 procurement or the use of a centralized contract let by the commissioner 38 is not in the best interest of the state, and the reasonableness of 39 cost. THE AUTHORITY TO USE A CONTRACT LET BY ANOTHER GOVERNMENTAL ENTITY 40 PURSUANT TO THIS PARAGRAPH IS INTENDED TO BENEFIT THE STATE BY USING 41 CONTRACTS IN PLACE THAT PROVIDE FOR THE SAME SERVICE OR COMMODITY SOUGHT 42 BY A STATE AGENCY AT A PRICE DETERMINED TO BE REASONABLE BY THE STATE 43 AGENCY. SUCH CONTRACTS ARE NOT INTENDED TO BE USED PRIMARILY TO AVOID 44 COMPETITIVE BIDDING. USE OF MULTIPLE AWARD CONTRACTS PURSUANT TO THIS 45 PARAGRAPH SHALL FOLLOW THE SAME BASIS OF SELECTION AMONG THE MULTIPLE 46 AWARDEES AS WAS PRESCRIBED BY THE ORIGINAL CONTRACTING GOVERNMENTAL 47 ENTITY. 48 S 16. Subdivision 15 of section 163 of the state finance law is 49 amended by adding a new paragraph d to read as follows: 50 D. IN ADDITION TO OTHER REPORTS REQUIRED BY THIS SUBDIVISION, THE 51 COMMISSIONER OF GENERAL SERVICES SHALL PREPARE A REPORT ON THE SAVINGS 52 ACHIEVED FROM ALL CONTRACTS ESTABLISHED AS A CENTRALIZED CONTRACT 53 THROUGH THE OFFICE OF GENERAL SERVICES PURSUANT TO THIS SECTION, THE 54 IMPACT OF SUCH CONTRACTS ON SMALL, MINORITY AND WOMEN-OWNED AND 55 SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES, AND THE EFFECTIVE- 56 NESS OF SUCH CONTRACTS IN FULFILLING THE PURCHASING NEEDS OF ALL AUTHOR- A. 7513 12 1 IZED USERS OF SUCH CONTRACTS. SUCH REPORT SHALL BE SUBMITTED BY SUCH 2 COMMISSIONER TO THE GOVERNOR, THE STATE COMPTROLLER, AND THE HEADS OF 3 THE FISCAL COMMITTEES OF EACH HOUSE OF THE STATE LEGISLATURE NO LATER 4 THAN JANUARY FIFTEENTH, TWO THOUSAND SIXTEEN, AND THEREAFTER ANNUALLY ON 5 OR BEFORE SUCH DATE. 6 S 17. Subdivision 3 of section 112 of the state finance law, as 7 amended by chapter 319 of the laws of 1992, is amended to read as 8 follows: 9 3. A contract or other instrument wherein the state or any of its 10 officers, agencies, boards or commissions agrees to give a consideration 11 other than the payment of money, when the value or reasonably estimated 12 value of such consideration exceeds [ten] TWENTY-FIVE thousand dollars, 13 shall not become a valid enforceable contract unless such contract or 14 other instrument shall first be approved by the comptroller and filed in 15 his office. FOR PURPOSES OF THIS SUBDIVISION, WHERE CONSIDERATION CANNOT 16 BE DETERMINED IN TERMS OF MONETARY VALUE, IT SHALL BE VALUED IN TERMS OF 17 INTRINSIC VALUE. 18 S 18. Section 350 of the education law is amended by adding a new 19 subdivision 14 to read as follows: 20 14. "CONSTRUCTION RELATED SERVICES" MEANS STUDIES, SURVEYS, 21 CONSTRUCTION MANAGEMENT, CONSTRUCTION INSPECTION, EXCAVATION AND SIMILAR 22 EFFORTS ASSOCIATED WITH CONSTRUCTION OR THE ACQUISITION OF PUBLIC WORKS. 23 S 19. This act shall take effect immediately; provided, however, 24 section two of this act shall take effect on the one hundred eightieth 25 day after it shall have become a law; provided, further, however, that 26 the provisions of sections one, five, seven, eight, nine, thirteen, 27 fourteen, fifteen and sixteen of this act shall apply to any procurement 28 initiated on or after such date; provided, further however, that the 29 amendments to section 163 of the state finance law made by sections one, 30 five, seven, eight, nine, thirteen, fourteen, fifteen and sixteen of 31 this act shall not affect the repeal of such section as provided in 32 subdivision 5 of section 362 of chapter 83 of the laws of 1995, as 33 amended, and shall be deemed repealed therewith.