BILL NUMBER: S4480
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to the purchase
of apparatus, materials, equipment or supplies
 
PURPOSE:
The purpose of the bill is to prohibit the use of piggyback contracting
for construction services.
 
SUMMARY OF PROVISIONS:
Amend section 103(16) of the general municipal law to scale hack the
scope of services which may be utilized through such procurement method.
 
JUSTIFICATION:
Localities must comply with New York State General Municipal Law (GML)
Section 103 that generally requires them to competitively bid purchase
contracts above 520.000 and public work contracts axive $35,000. Howev-
er, GML sets forth certain exceptions to the competitive bidding
requirements. One exception, often referred to as piggybacking, allows
for the procurement of certain goods and services through the use of
other governmental contracts. For the exception to apply, certain
prerequisites must be met, including the contract must have been let to
the lowest responsible bidder or on the basis of best value as defined
in Section 163 of the New York State Finance Law.
This exception allows the locality or school district to benefit from
the competitive process already undertaken by other local governments.
However, many school districts have abused this by procuring certain
materials and goods, then including certain construction services
involved with any installation and repair. In many cases. these
contracts can be worth multimillion dollars which was not the original
intent of including the piggybacking exception. By amending § 103
(16), New York will better ensure that competitive hid laws are
followed, which provides transparency and accountability to the public.
 
LEGISLATIVE HISTORY:
2023-24: S.71 19A - Referred to Procurement and Contracts
 
FISCAL IMPACT:
None.
 
EFFECTIVE DATE:
This shall take effect immediately.

Statutes affected:
S4480: 103 general municipal law, 103(16) general municipal law