Contract Procurement Committee Update
August 20, 2012
Governor Cuomo issued a veto message for S.7782 (Robach)/A.10781 (Bronson), this bill would require state agencies to conduct a cost comparison analysis before issuing contracts for consultant services worth over $500,000. In his veto message the Governor cited that state agencies are already required to “establish and document the need for services and ensure that cost is reasonable.” Also, the State Finance Law requires services to be procured by best value which takes quality, efficiency and cost into consideration instead of just cost alone as this bill would have required. Please click here to see The Business Council’s letter of opposition to the Governor.
Governor Cuomo also vetoed S.6285-A (Lanza)/A.9034-B (Englebright) which would have placed restrictions on advertisements state agencies could procure for dissemination with agency mailers. The intent of this legislation was concern that some may inadvertently think the state was promoting the product or service advertised. The Governor vetoed this bill as written because it could unintentionally increase the cost to the state for engaging in public outreach by eliminating public-private partnership opportunities. In his veto message he said to address the issue he would direct state agencies to include a disclaimer on any mailers to the public that include ads relating to the mission of the agency, that the state is not endorsing the product or service advertised.
On August 17 Governor Cuomo signed S.7014 (Flanagan)/A.10147 (Nolan) into law, Chapter 422 of the laws of 2012. This bill allows public libraries to contract for services with Boards of Educational Cooperative Educational Services (BOCES). The Business Council opposed this bill because the state funded BOCES program has a definite comparative advantage over private business. According to a recent report by NYS Comptroller DiNapoli, many school districts contract with BOCES because of additional state funding and not because of superior services or competitive prices BOCES offers. To view the Comptroller’s report please click here. To view The Business Council’s letter of opposition please click here.