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Legislative Memo

Frank Kerbein
Director, Center for Human Resources
T 518.465.7517 x210
www.bcnys.org

BILL:

S.3564 (Bonacic) / A.4810 (Abate)

Support

SUBJECT:

Imposes Restrictions on Job Order Contracting

 

DATE:

February 21, 2013

 

This bill would place significant new conditions and restrictions on the use of Job Order Contracting (JOC) in pubic work contracts. Unfortunately, it would neutralize the economic, time saving and efficiency benefits of this system. The Business Council opposes enactment of this bill by the New York State Legislature.

Job Order Contracting (JOC)  is a procurement system that enables public agencies to engage in small and medium sized maintenance, repair projects and minor new construction projects with a single competitively bid contract. It saves taxpayer money and agency time by reducing the time and expense of completing the traditional contracting method for each small project. Public agencies applaud the significant demonstrated savings in time and taxpayer money through the use of JOC. JOC has a successful 15 year history. This bill will cripple their ability to get small projects completed quickly and increase the costs to bid, award and manage small construction projects.

Work under JOC is bid under the Wicks Law, the contractors are local New York contractors purchasing local material and employing local talent at prevailing wages.

The Business Council thinks that this bill would have a disproportionally negative impact on Minority/Women Business Enterprise (MWBEs) contractors due to the project labor agreement provisions of the bill.

To say that there would be no fiscal implications if this bill were enacted is contrary to the demonstrated results documented by  state agencies and municipalities that have used this method for over a decade.

No case has been made for depriving public agencies and municipalities of this tool that has demonstrated cost and time advantages for small projects time and time again.

For these reasons, The Business Council urges that this bill be rejected by the New York State Legislature.