PPB

Statement of Basis and Purpose of Proposed Rule

• Rule changes related to definitions (§ 1 below). This amendment to the Procurement Policy Board Rules (“PPB Rules”) adds a new definition for the term “State-certified M/WBE” to effectuate the rule changes described below. This amendment also clarifies the definition of the term “M/WBE.”

• Rule changes related to a Minority or Women-Owned Business Enterprise (“M/WBE”) scoring preference applicable to competitive sealed bids (§ 2 below). This amendment to the PPB Rules expands application of the best value competitive sealed bid price preference mechanism to both City and State-certified M/WBEs. This amendment also allows agencies to adjust or suspend this price preference with the approval of the Citywide Chief Procurement Officer (“CCPO”). This amendment exercises authority granted to the City by Chapter 504 of the Laws of 2017 and Chapter 19 of the Laws of 2018 and codified under New York City Charter Section 311(i)(2).

• Rule changes related to an M/WBE scoring preference applicable to competitive sealed proposals (§§ 3-5 below). This amendment to the PPB Rules expands application of the best value competitive sealed proposal point or price preference provisions to both City and State-certified M/WBEs and mandates its usage for both professional and construction-related consulting services. Additionally, this amendment also allows agencies to adjust or suspend this point or price preference with the CCPO’s approval. This amendment exercises authority granted to the City by Chapter 504 of the Laws of 2017 and Chapter 19 of the Laws of 2018 and codified under New York City Charter Section 311(i)(2).

• Rule changes related to expansion of the M/WBE Noncompetitive Small Purchase Mechanism (§§ 6-7 below). This amendment to the PPB Rules allows agencies to use the M/WBE Noncompetitive Small Purchase mechanism to make purchases not in excess of $500,000. This amendment also expands the scope of applicability of the M/WBE Small Purchase mechanism, allowing agencies to use this mechanism to procure construction services as well. This amendment exercises authority granted to the City by Chapter 98 of the Laws of 2019 and codified under New York City Charter Section 311(i)(1).

Statement of Basis and Purpose of Proposed 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 proposed 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.

Statement of Basis and Purpose

Procurement Policy Board (“PPB”) Rule 3-05 currently sets forth the procedures that must be followed for all sole source procurements above $2,500. Sole source procurement is a method of procurement that is to be used where there is only one source for the required goods, service or construction. PPB Rule 3-05 is being amended to make the sole source procurement rule consistent with recent changes to another PPB Rule, Rule 3-08. PPB Rule 3-08 generally governs small purchases, i.e. purchases under $100,000. Recent amendments to PPB Rule 3-08 changed the amount below which no competition is required for small purchases, from $5,000 to $20,000. In order to be consistent with these changes, PPB Rule 3-05 is being amended to increase the threshold above which agencies must follow sole source procurement procedures to $20,000; above this threshold, agencies must follow the sole source procurement process set forth in Rule 3-05.

Rule 3-05 is also being amended to provide that, for all procurements subject to Rule 3-05, the Agency Chief Contracting Officer (“ACCO”) must provide a description of the process used to determine that only one source was available; a description of the efforts made to ensure that offers were solicited from other sources; where applicable, a statement of intended actions to develop competition in future; and must perform a presoliciation review. Previously, some of these requirements only applied to procurements above specified monetary thresholds ($10,000 or less for goods and services and $15,000 or less for construction and construction-related services).

Statement of Basis and Purpose

This rule is proposed pursuant to the authority of the Procurement Policy Board under sections 311 and 1043 of the New York City Charter.

The proposed amendments to the Procurement Policy Board Rules (“Rules”) seek to establish an alternative method of procuring investment management services for the assets of the New York City Retirement Systems and related funds (collectively the “Systems”). The proposed process was tested and arises from a pilot program, established under Section 3-12 of the Rules for Innovative Procurement Methods.

The goals of the proposed amendments to the Rules are to:

1)    leverage existing financial databases and the analytical resources of the Systems investment consultants to increase competition and expand the universe of managers that may be considered for retention by the Systems;

2)    increase the pool of top tier investment management firms to invest the System’s assets by establishing a process whereby all qualified investment managers are considered for possible contract award;

3)    reduce the time it takes to complete the procurement process by eliminating the need to review and evaluate large numbers of proposals regardless of performance ranking and instead allow the investment staff working on behalf of the Systems to concentrate its evaluation on the highest performers, as determined through industry wide assessments and sophisticated analytics performed by the Systems’ consultants; and

4)    allow the Systems to react more quickly to market opportunities, which should improve performance and reduce market impact on the Systems’ portfolios.

Statement of Basis and Purpose

The City of New York invests billions of dollars annually in client and community-based services through competitive contracts. These contracts are awarded to providers to deliver a wide range of services such as mental health counseling, workforce training, foster care, after school programs, senior centers, and shelter and housing programs. The city agencies contracting for these services include the Administration for Children’s Services, Department for the Aging, Department of Correction, Office of the Criminal Justice Coordinator, Department of Health and Mental Hygiene, Department of Homeless Services, Department of Probation, Department of Housing Preservation and Development, Human Resources Administration, Department of Small Business Services, and Department of Youth and Community Development.

To streamline the procurement process for these client services contracts, on April 9, 2012, the Mayor issued Executive Order No. 160 (EO 160), establishing HHS Accelerator within the Office of the Mayor. HHS Accelerator was created to simplify and speed the contract process for client and community-based Services providers. Through a deliberate and collaborative multi-year planning process with providers, redundant paper-based requirements were removed, processes reengineered, and contract documents standardized. HHS Accelerator allows vendors to pre-qualify online, and upload and store documents electronically that were previously submitted by hard copy for each contract solicitation. HHS Accelerator also provides City oversight and contracting agencies a means for standardizing the procurement process, in particular service categories, and for monitoring solicitations centrally. EO 160 also established the position of HHS Accelerator Director.

The proposed amendments to the rules:

•       Define functions of HHS Accelerator and authority of the HHS Accelerator Director;

•       Establish the HHS Accelerator Rule as the default procurement method for client service contracts except as otherwise provided in the rule;

•       Set forth the policy and criteria governing the prequalification of vendors through HHS Accelerator, including a method for a vendor to appeal denial of prequalification through HHS Accelerator;

•       Establish a process for soliciting proposals from prequalified vendors through HHS Accelerator.

Statement of Basis and Purpose

Prior to recent amendments to New York State General Municipal Law § 103, contracts for public work and contracts for purchase contracts (i.e., contracts for the purchase of goods and standard services) had to be procured, as a general matter, by publicly advertised, low sealed bid. The recent changes to GML § 103 (the “Best Value Law”) give the City the option to procure purchase contracts based on best value to the City, as that phrase is defined in State Finance Law § 163. Under that section, best value is defined in terms of the optimization of quality, cost and efficiency.

PPB Rule 2-09 sets forth the requirements for the Recommendation for Award prepared by the agency’s contracting officer. In light of recent amendments to PPB Rules, 9 RCNY §§ 3-02 and 3-03, which give agencies the option to award goods and standard services based on best value to the City instead of lowest bidder, the proposed amendment to Rule 2-09 adds the requirement that the Recommendation for Award set forth the criteria used in determining best value if an award is made to a bidder whose bid represents the best value to the City.