Section 1734. Contracts of the authority

1.  a. All contracts for the
  construction, reconstruction, improvement, rehabilitation,  maintenance,
  repair,  furnishing, equipping of or otherwise providing for educational
  facilities for the city board may be  awarded  in  accordance  with  the
  provisions  of  this  section, notwithstanding the provisions of section
  eight of the public buildings law, section  one  hundred  three  of  the
  general  municipal  law,  section  one  hundred thirty-five of the state
  finance law, section seven of the New York state financial emergency act
  for the city of New York or of any other provision of  general,  special
  or local law, charter or administrative code.
    b.  The  authority  shall  be subject to the provisions of section one
  hundred one of the general municipal law.
    2. a. Except as otherwise  provided  in  this  section,  all  purchase
  contracts  for  supplies,  materials or equipment involving an estimated
  expenditure in excess of ten thousand  dollars  and  all  contracts  for
  public  work  involving  an  estimated  expenditure  in  excess of fifty
  thousand dollars shall  be  awarded  by  the  authority  to  the  lowest
  responsible bidder after obtaining sealed bids in the manner hereinafter
  set  forth. For purposes hereof, contracts for public work shall exclude
  contracts for personal, engineering and architectural,  or  professional
  services.
    b. The authority may reject all bids and obtain new bids in the manner
  provided  by  this section when it deems it in the public interest to do
  so or, in cases where two or more responsible bidders  submit  identical
  bids  which  are  the  lowest  bids,  award  the contract to any of such
  bidders or obtain new bids  from  such  bidders.  Nothing  herein  shall
  obligate  the  authority to seek new bids after the rejection of bids or
  after cancellation of an invitation to  bid.  Nothing  in  this  section
  shall  prohibit  the evaluation of bids on the basis of costs or savings
  including life cycle costs of the item to be purchased,  discounts,  and
  inspection  services  so  long  as the invitation to bid reasonably sets
  forth the criteria to be used in evaluating such costs or savings.  Life
  cycle  costs  may  include  but shall not be limited to costs or savings
  associated with installation, energy  use,  maintenance,  operation  and
  salvage or disposal.
    3. a. Notwithstanding the provisions of paragraph a of subdivision two
  of  this section, the authority shall establish guidelines governing the
  qualifications of bidders entering into contracts for the  construction,
  reconstruction,   improvement,   rehabilitation,   maintenance,  repair,
  furnishing,  equipping  of  or  otherwise  providing   for   educational
  facilities  for  the  city board. The bidding may be restricted to those
  who have qualified prior to the receipt of bids according  to  standards
  fixed  by  the authority; provided, however, that the award of contracts
  shall, to the  extent  not  inconsistent  with  this  paragraph,  be  in
  accordance with paragraph b of subdivision two of this section.
    b. In determining whether a prospective bidder qualifies for inclusion
  on a list of pre-qualified bidders, the authority shall consider (1) the
  experience  and  past  performance  of  the  prospective bidder; (2) the
  prospective bidder's ability to undertake work; and  (3)  the  financial
  capability,  responsibility  and reliability of prospective bidders. The
  authority may also consider such other factors as it deems appropriate.
    c. The authority shall, not less than twice each year, publish,  in  a
  newspaper   of   general  circulation  in  the  city  of  New  York,  an
  advertisement requesting prospective  bidders  to  submit  qualification
  statements. Lists of pre-qualified bidders shall be reviewed and updated
  not less than annually by the authority. The authority shall delete from
  the  list  of pre-qualified bidders any bidder who has failed to perform

  adequately or satisfactorily for the authority, the city  board  or  any
  other city or state agency or authority.
    d.   Lists   of   pre-qualified   bidders  may  be  established  on  a
  project-specific basis; provided, however, that any such list shall have
  no less than five bidders.
    4. a. Advertisement for bids, when required by this section, shall  be
  published  at  least  once  in a newspaper of general circulation in the
  city of New York. Publication in such a newspaper shall not be  required
  (i)  if bids for contracts for supplies, materials or equipment are of a
  type regularly purchased by the authority and are to be solicited from a
  list of potential suppliers, if such  list  is  or  has  been  developed
  consistent  with  the  provisions  of subdivision six of this section or
  (ii) if bids are to be solicited from a list  of  pre-qualified  bidders
  pursuant  to  the provisions of paragraph d of subdivision three of this
  section. Any such advertisement shall contain a statement  of  the  time
  and  place  where  all  bids  received  pursuant  to such notice will be
  publicly opened and read. At least fourteen days  shall  elapse  between
  the first publication of such advertisement or the solicitation of bids,
  as the case may be, and the date of opening and reading of bids.
    b.  The  authority  may  designate any officer or employee to open the
  bids at the time and place bids are to be opened and  may  designate  an
  officer  to  award  the  contract to the lowest responsible bidder. Such
  designee shall make a record of all bids in such form and detail as  the
  authority  shall  prescribe.  All bids received shall be publicly opened
  and read at the time and place specified in the advertisement or at  the
  time  of  solicitation,  or  to  which the opening and reading have been
  adjourned by the authority. All bidders shall be notified  of  the  time
  and place of any such adjournment.
    5.  Notwithstanding  the  foregoing,  the  authority may by resolution
  approved by a vote of its members declare (i) that  competitive  bidding
  for  non-construction  contracts is impractical or inappropriate because
  of the existence of any of the circumstances hereinafter  set  forth  or
  (ii)  that competitive bidding for construction contracts is impractical
  or inappropriate because of the existence of the circumstances set forth
  in paragraph a of this subdivision. Thereafter the authority may proceed
  to  award  contracts  without  complying  with   the   requirements   of
  subdivision  two  or  three  of  this  section.  In  each case where the
  authority declares competitive bidding impractical or inappropriate,  it
  shall   state   the   reason  therefor  in  writing  and  summarize  any
  negotiations that have been conducted and shall be made  available  upon
  request.  Except for contracts awarded pursuant to paragraphs a, b and c
  of this subdivision, the authority shall not award any contract pursuant
  to this subdivision earlier than thirty days from the date on which  the
  authority   declares   that   competitive   bidding  is  impractical  or
  inappropriate. Competitive bidding may only be declared  impractical  or
  inappropriate where:
    a.  the  existence of an emergency involving danger to life, safety or
  property requires immediate action and cannot await competitive  bidding
  or  the  item to be purchased is essential to efficient operation or the
  adequate provision of service by the city board or the authority and  as
  a  consequence  of  unforeseen  circumstance  such purchase cannot await
  competitive bidding;
    b. the  authority  receives  no  responsive  bids  or  only  a  single
  responsive bid in response to an invitation for competitive bids;
    c. the item is available through an existing contract between a vendor
  and  (i)  another  public  authority  provided that such other authority
  utilized a process of competitive bidding or a  process  of  competitive
  requests  for proposals to award such contracts, or (ii) the city board,

  or (iii) the state of New York, or (iv) the city of New  York,  provided
  that in any case when under this paragraph the authority determines that
  obtaining  such  item  thereby  would be in the public interest and sets
  forth the reason for such determination. The authority shall accept sole
  responsibility  for  any  payment  due  the  vendor  as  a result of the
  authority's order; or
    d. the authority determines that it is in the public interest to award
  contracts pursuant to a process for competitive requests  for  proposals
  as  hereinafter  set  forth. For purposes of this section, a process for
  competitive requests for proposals shall mean  a  method  of  soliciting
  proposals and awarding a contract on the basis of a formal evaluation of
  the  characteristics,  such  as  quality,  cost,  delivery  schedule and
  financing of such proposals against stated  selection  criteria.  Public
  notice  of  the requests for proposals shall be given in the same manner
  as provided in subdivision three of this section and shall  include  the
  selection  criteria.  In the event the authority makes a material change
  in the selection criteria from those previously stated in the notice, it
  will inform all proposers of such change and permit proposers to  modify
  their proposals.
    (i) The authority may award a contract pursuant to this paragraph only
  after a resolution approved by a vote of its members at a public meeting
  of the authority with such resolution (A) disclosing the other proposers
  and  the  substance  of their proposals, (B) summarizing the negotiation
  process including the opportunities, if any, available to  proposers  to
  present  and  modify their proposals, and (C) setting forth the criteria
  upon which the selection was made.
    (ii)  Nothing  in  this  paragraph  shall  require  or  preclude   (A)
  negotiations  with  any  proposers following the receipt of responses to
  the request for proposals or (B) the rejection of any or  all  proposals
  at  any  time.  Upon  the  rejection of all proposals, the authority may
  solicit new proposals or bids in any manner prescribed in this section.
    6. Upon the adoption of a resolution by  the  authority  stating,  for
  reasons   of   efficiency,   economy,   compatibility   or   maintenance
  reliability, that there is a need for standardization, the authority may
  establish procedures whereby particular supplies, materials or equipment
  are identified on a  qualified  products  list.  Such  procedures  shall
  provide for products or vendors to be added to or deleted from such list
  and  shall  include provisions for public advertisement of the manner in
  which such lists are compiled. The authority shall review such  list  no
  less  than  twice  a  year for the purpose of making such modifications.
  Contracts for particular supplies, materials or equipment identified  on
  a  qualified products list may be awarded by the authority to the lowest
  responsible bidder after obtaining sealed bids in accordance  with  this
  section or without competitive sealed bids in instances when the item is
  available  from  only  a  single  source,  except that the authority may
  dispense  with  advertising  provided  that  it  mails  copies  of   the
  invitation to bid to all vendors of the particular item on the qualified
  products list.
    7.  The  authority  shall  compile  a  list  of  potential  sources of
  supplies, materials or  equipment  regularly  purchased.  The  authority
  shall,  by  resolution,  set  forth the procedures it has established to
  identify new sources and to notify such new sources of  the  opportunity
  to  bid  for  contracts  for  the  purchase  of  supplies,  materials or
  equipment.  Such  procedures  shall  include,  but  not  be  limited  to
  advertising in trade journals.
    8.  The  authority  shall  be  subject  to  the  provisions of section
  twenty-eight hundred seventy-nine of this chapter in awarding  contracts
  for personal services.

    9.  The  board shall, by resolution, establish procedures for the fair
  and  equitable  resolution  of   contract   disputes.   Prior   to   the
  establishment  of  such  policy,  the board shall publish in appropriate
  publications a notice of such policy and invite comment from  interested
  parties,  including,  but not limited to representatives of construction
  organizations. Such notice shall also state that the authority will hold
  a public hearing to consider the policy at a specified time and place on
  a date not less than ten days after such publication, and the  authority
  shall conduct the public hearing pursuant to such notice.
    10.  The  provisions  of  article  eight  of  the  labor  law shall be
  applicable to all contracts entered into directly or indirectly  by  the
  authority.
    11.  The provisions of subdivision one of section one hundred six-b of
  the general municipal  law  shall  apply  to  the  authority,  provided,
  however, that the authority may retain up to four times the value of any
  remaining items to be completed.