Contract Procurement Committee Update
December 18, 2012

New York State Procurement Council Meeting. The New York State Procurement Council approved changes to its Appendix A, “standard clauses for New York State Contracts,” to reflect changes in State Finance Law section 112 removing the State Comptroller’s authority to conduct pre-contract reviews for centralized contracts with the state Office of General Services. Please click here to see the approved revised version of Appendix A. The Procurement Council also approved Preferred Source Guidelines, which sets forth the purpose, scope and process of procuring from the Preferred Sources. Please click here to view these revised preferred source guidelines.

Letters of Credit. Governor Cuomo vetoed S.5671-A (DeFrancisco)/A.8461-A (Gantt) which would have capped the amount of a Letter of Credit an agency may require to be no more than 3% the total contract cost. The goal of the legislation was to make required guarantees more uniform across various contracting agencies and to make it easier for small and medium sized businesses to successfully bid on large contracts. In the Governor’s veto message he concludes that he does not believe this bill would fulfill the purpose and “will work with the sponsors on legislation that achieves that objective.” The Business Council supported this bill and will continue to work advocating for the goals set forth.