M/WBE Noncompetitive Small Purchase Provisions

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Monday, November 5, 2018

 

NOTICE OF ADOPTION OF RULE

 Pursuant to the authority vested in the Procurement Policy Board by Section 311 of the New York City Charter (“Charter”) and in accordance with the requirements of Section 1043 of said Charter, the Procurement Policy Board has adopted amendments to Chapter 1, Chapter 2, and Chapter 3 of Title 9 of the Rules of the City of New York. The amendments were published in the City Record on June 18, 2018, and a supplemental notice was published on July 6, 2018. A public hearing was held on July 19, 2018. The amendments were adopted by the Procurement Policy Board on September 27, 2018. This rule will go into effect on November 5, 2018.

 

STATEMENT OF BASIS AND PURPOSE OF RULE

 

  • Rule changes relating to PASSPort threshold escalation and terminological change (§§ 1-5). This amendment to the Procurement Policy Board Rules (“PPB Rules”) increases the dollar threshold for mandatory PASSPort enrollment for vendors doing business with the City of New York. This PPB Rules amendment also seeks to clarify the nomenclature used to describe the electronic vendor record system established pursuant to Section 6-116.2(b) of the New York City Administrative Code.

 

  • Rule changes relating to copies of registered contracts (§ 6). This amendment to the PPB Rules permits the Comptroller to accept reproductions of signature in lieu of original ink signatures. The New York City Charter requires only that “a copy” of a contract or agreement be filed with the Comptroller for the purposes of contract registration.  See NYC Charter § 328. The PPB Rules, which apply to the vast majority of City contracts, however, require that an “original executed contract” “…be submitted for each item required to be registered.”  See PPB Rules § 2-12. This change to the PPB Rules is consistent with applicable New York laws governing electronic contracts and signatures, the admissibility of reproductions in a court of law, and current trends favoring increased acceptance of electronic records.

 

  • Creation of an “M/WBE Noncompetitive Small Purchase” mechanism (§ 7). This amendment to the PPB Rules creates a new subtype of small purchase, known as an “M/WBE Noncompetitive Small Purchase.” The M/WBE Noncompetitive Small Purchase mechanism allows agencies to make purchases of goods and services from Minority and Women Owned Business Enterprises (“M/WBEs”) in amounts not exceeding $150,000 without competition. Pursuant to the authority set forth in New York City Charter Section 311(i)(1), added by Chapter 504 of the Laws of 2017, this amendment also creates a separate small purchase threshold for M/WBE Noncompetitive Small Purchases.

 The PPB’s authority for these rules is found in section 311of the New York City Charter.