Int. No. 523
By Council Members Leffler, Freed and Fisher; also Council Members Lasher, Marshall, Sabini and White.
A Local Law to amend the administrative code of the city of New York, in relation to requiring quality based selection for architectural and engineering services with city agencies.
Be it enacted by the Council as follows:
Section 1. Declaration of Legislative Findings and Intent. Currently, all public contracts for architectural and engineering services with New York City agencies are awarded on the basis of competitive bidding where cost, is the primary, if not sole, factor. Competitive bidding negotiations where price is the prime factor for judgment services is not in the best interest of the public or the agencies that procure such professional services. The principal reason supporting quality based selection legislation is the lack of definitive scope involved in the procurement for such services at the time the selection is made and the importance of selecting the best qualified firm. It would be far more beneficial to make the qualification selection of the architect-engineer firm first and then discuss the price at a later date because both parties need to review in detail what specifics are involved in the work. Once the necessary parameters have been fully discussed and the architect-engineer has proposed a price for the work, the quality based selection procedure would require an agency to make its own evaluation and judgment as to the reasonableness of the price. If the price is fair and reasonable, the award is made without consideration of proposals and prices of other competing firms. If, however, the price cannot be negotiated to the satisfaction of the agency, negotiations would then commence with other qualified firms. Accordingly, price is an important factor in the award of the architect-engineer selection; the key difference is at what point the price of the project is taken into consideration.
§2. Title 6 of the Administrative Code of the City of New York is hereby amended by adding a new section 6-124, to read as follows:
Section 6-124. Definitions. a. For purposes of this section only, the following terms shall have the following meanings:
(1) "Firm" means any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice the professions of architecture or engineering.
(2) "Contracting agency" means a city, county, borough, or other office, position, administration, department, division, bureau, board or commission, or a corporation, institution or agency of government, the expenses of which are paid in whole or in part from the city treasury.
(3) “Architectural and engineering services” means:
(i) professional services of an architectural or engineering nature which are required to be performed or approved by a person licensed, registered, or certified to provide such services as described in this paragraph; and
(ii) professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property; and
(iii) such other professional services of an architectural or engineering nature, or incidental services, which members of the architectural and engineering professions and their employees may logically or justifiably perform, including studies, investigations, surveying and mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual design, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related services.
b. In the procurement of architectural and engineering services, the contracting agency shall encourage firms engaged in the lawful practice of their profession to submit annually a statement of qualifications and performance data. A written report explaining the selection process and the criteria to be used shall be made available by the contracting agency to any interested architectural and engineering firms. The contracting agency, for each proposed project, shall evaluate current statements of qualifications and performance data on file with the agency, together with those that may be submitted by other firms regarding the proposed project, and shall conduct discussions with no less than three firms regarding anticipated design concepts and proposed methods of approach to the assignment. The contracting agency shall then select, in order of preference, based upon criteria established by the contracting agency, no less than three professional firms deemed to be the most highly qualified to provide the services required.
c. The contracting agency shall negotiate a contract with the highest qualified firm for architectural and engineering firms at compensation which the contracting agency determines is fair and reasonable to the city of New York. In making such determination, the agency head shall take into account the estimated value of services to be rendered, including the costs, the scope, complexity, and professional nature thereof.
d. Should the contracting agency be unable to negotiate a satisfactory contract with the firm considered to be the most qualified, at a price determined to be fair and reasonable to the city of New York, negotiations with that firm shall be formally terminated. The contracting agency shall then undertake negotiations with the second most qualified firm. Failing accord with the second most qualified firm, the contracting agency should formally terminate negotiations. The contracting agency shall then undertake negotiations with the third most qualified firm.
e. Should the contracting agency be unable to negotiate a satisfactory contract with any of the selected firms, it shall select additional firms in order of their competence and qualification and continue negotiations in accordance with this section until an agreement is reached.
f. This legislation shall apply to architectural and engineering services in excess of the amounts established pursuant to section three hundred fourteen of the charter.
§3. This local law shall take effect forty-five days after its adoption.
LS#: 1323