2023 New York Laws › STF - State Finance › Article 9 - Contracts › 136-A - Contracts for Architectural, Engineering, Geological, Landscape Architecture and Surveying Services.

§   136-a.   Contracts  for  architectural,  engineering,  geological,
  landscape architecture 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, geology, landscape architecture 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  geological  and/or
  landscape  architecture  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,  geological,
  landscape  architecture  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 geological service and/or landscape architecture 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 geological and/or  landscape  architecture
  and/or surveying services in excess of twenty-five thousand dollars.