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May 2 & 3, 2017 #2018NYGovBuy @NYSPro @nysprocurement co-sponsored by Municipal Purchasing Do’s and Don’ts Mary Anne Sadowski, Esq.

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Page 1: Municipal Purchasing Do’s and Don’ts...May 2 & 3, 2017 #2018NYGovBuy @NYSPro @nysprocurement co-sponsored by Municipal Purchasing Do’s and Don’ts Mary Anne Sadowski, Esq

May 2 & 3, 2017

#2018NYGovBuy @NYSPro @nysprocurement

co-sponsored by

Municipal Purchasing Do’s

and Don’tsMary Anne Sadowski, Esq.

Page 2: Municipal Purchasing Do’s and Don’ts...May 2 & 3, 2017 #2018NYGovBuy @NYSPro @nysprocurement co-sponsored by Municipal Purchasing Do’s and Don’ts Mary Anne Sadowski, Esq

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#2018NYGovBuy @NYSPro @nysprocurement

Overview – General

Municipal Law

Section 103

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General Municipal Law Section 103

General Municipal Law requires that bids be advertised and awarded pursuant to a competitive bidding process for:

Purchase contracts in excess of $20,000

Public Works contracts in excess of $35,000

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Requirements of Law

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Requirements of Law

General Municipal Law Section 103 requires that award be

made to the lowest responsible bidder submitting a bid in

response to an advertised bid

Requires a “sealed bid”

Responsiveness of the bidder must be determined first

Once responsiveness determined, review of bidder to

determine its responsibility

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Piggybacking under

GML §103(16)

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Piggybacking under GML §103(16)

Prior to enactment of GML §103(16), piggybacking doctrine applicable

when purchasing from

• NYSOGS (“State contract”)

• County contract where county has authorized purchase by other

municipalities pursuant to County Law §408-a

Applies only to purchases of apparatus, materials, equipment or supplies,

or contracts for services related to the installation, maintenance or repair

of apparatus, materials, equipment and supplies contract

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Piggybacking under GML §103(16)

Contract must have been let by the United States or any agency thereof, any state or any

other political subdivision or district therein: Contracts by private parties do not fall within the

exception!

AND

The contract must have been made available for use by other governmental entities:

• the other governmental entity must have expressly indicated in the terms and conditions

of the contract that it is available for use by other governmental entities

• vendors cannot offer pricing in existing contracts to other municipalities

AND

The contract must have been let in a manner that constitutes competitive bidding

“consistent with state law”

• “state law” refers to New York State’s bidding laws

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Cooperative Bidding

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Cooperative Bidding

Intermunicipal Agreements under GML §119-o:

Provides that two or more municipalities can join together to perform functions

that each has the right to engage in on their own

Provides the basis for preparing a bid that can be used by all participants in the

cooperative

Requires and agreement between and among the participants in the cooperative

which dictates rights and responsibilities of the participating municipalities

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Use of Best Value

Awards GML 103(16)

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Use of Best Value Awards

Prior to the change in legislation, purchase contracts in excess of $20,000 were required to be

awarded to the lowest responsible bidder after the solicitation of sealed bids.

The Legislature amended General Municipal Law §103 to permit award of a purchase contract

based upon the “best value” standard, rather than to the lowest bidder. The language of the

statute is as follows:

“Purchase contracts (including contracts for service work, but excluding any purchase

contracts necessary for the completion of a public works contract pursuant to article

eight of the labor law) may be awarded on the basis of best value, as defined in section

one hundred sixty-three of the State Finance Law, to a responsive and responsible

bidder … in the manner provided by this section … ”

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Use of Best Value Awards

State Finance Law defines “best value” as follows:

“ … the basis for awarding contracts for services to the offerer which optimizes quality,

cost and efficiency, among responsive and responsible offerers. Such basis shall

consider every possible, objective and quantifiable analysis. Such basis may also

identify a quantitative factor for offerers that are small businesses or certified minority–

or woman-owned enterprises … ”

To implement the use of “best value” standard for contract awards, the purchasing/

procurement policy should be amended to reflect that the municipality may in various

circumstances utilize a “best value” manner of award.

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Use of Best Value Awards

Where the basis for the award is “best value,” documentation in the procurement record should

include:

a quantification of the criteria to be utilized in evaluating proposals,

the rating assigned to each criterion, and

the evaluation results of the bids received.

Specifically, the specifications should include the evaluation criteria the municipality intends to use in

making an award, as well as the relative importance and/or weight each criteria will have and upon

which a determination of “best value” will be made.

In addition, the governing body should adopt a resolution each time it seeks to make an award based

upon “best value” and delineate the evaluation criteria to be used in connection with an award.

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Conclusion

Page 16: Municipal Purchasing Do’s and Don’ts...May 2 & 3, 2017 #2018NYGovBuy @NYSPro @nysprocurement co-sponsored by Municipal Purchasing Do’s and Don’ts Mary Anne Sadowski, Esq

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QUESTIONS?

Mary Anne Sadowski, Esq.150 Motor Parkway, Suite 400

Hauppauge, New York 11788


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