Section 136-A. Contracts for architectural, engineering and surveying services

1. As used in this section: the term "professional firm" shall
  be defined  as  any  individual  or  sole  proprietorship,  partnership,
  corporation,  association  or  other  legal  entity  permitted by law to
  practice the professions of architecture, engineering or surveying.
    The term "state department" shall be defined as those state government
  departments, divisions or commissions empowered by the  state  to  enter
  into contractual agreements on behalf of the state of New York.
    2.  It  is  the  policy  of  New York state to negotiate contracts for
  architectural and/or engineering services and/or surveying  services  on
  the  basis  of demonstrated competence and qualification for the type of
  professional services required and at fair and reasonable fees.
    3. In the procurement  of  architectural,  engineering  and  surveying
  services,  the  requiring  state department shall encourage professional
  firms engaged in the lawful practice of  the  profession  to  submit  an
  annual  statement of qualifications and performance data.  The requiring
  state department  for  each  proposed  project  shall  evaluate  current
  statements  of  qualifications  and  performance  data  on file with the
  department. If desired,  the  requiring  state  department  may  conduct
  discussions  with three or more professional firms regarding anticipated
  design concepts and proposed methods of approach to the assignment.  The
  state  department  shall  select,  in  order  of  preference, based upon
  criteria established by the requiring state  department,  no  less  than
  three  professional  firms  deemed  to  be  the most highly qualified to
  provide the services required.
    4. The requiring state department shall negotiate a contract with  the
  highest qualified professional firm for architectural and/or engineering
  services  and/or surveying services at compensation which the department
  determines in writing to be fair and reasonable  to  the  state  of  New
  York.  In  making  this decision, the department shall take into account
  the estimated value of the services to be rendered, including the costs,
  the scope, complexity, and professional nature thereof.  The  department
  shall  not  refuse  to negotiate with a professional firm solely because
  the ratio of the "allowable indirect costs" to direct labor costs of the
  professional firm or the hourly labor rate in any labor category of  the
  professional  firm  exceeds a limitation generally set by the department
  in the determination of the reasonableness  of  the  estimated  cost  of
  services  to  be  rendered  by  the  professional  firm,  but rather the
  department should also consider the reasonableness of cost based on  the
  total  estimated  cost  of  the  service  of the professional firm which
  should include, among other things, all the direct labor  costs  of  the
  professional firm for such services plus all "allowable indirect costs,"
  other  direct  costs,  and  negotiated  profit of the professional firm.
  "Allowable indirect costs" of a professional firm are defined  as  those
  costs  generally  associated  with overhead which cannot be specifically
  identified  with  a  single  project  or  contract  and  are  considered
  reasonable  and  allowable under specific state contract or allowability
  limits. Should the requiring state department be unable to  negotiate  a
  satisfactory  contract  with  the professional firm considered to be the
  most qualified, at a fee  the  department  determines  to  be  fair  and
  reasonable to the state of New York, negotiations with that professional
  firm  shall be formally terminated. The requiring state department shall
  then undertake negotiations with the second most qualified  professional
  firm.  Failing  accord with the second most qualified professional firm,
  the department shall  formally  terminate  negotiations.  The  requiring
  state  department  shall then undertake negotiations with the third most
  qualified professional firm. Should the requiring  state  department  be
  unable  to  negotiate  a  satisfactory contract with any of the selected

  professional firms, it shall select  additional  professional  firms  in
  order  of  their  competence  and  qualification  and  it shall continue
  negotiations in accordance with  this  section  until  an  agreement  is
  reached.
    5.   This   legislation   shall   only  apply  to  engineering  and/or
  architectural  services  and/or  surveying   services   in   excess   of
  twenty-five thousand dollars.