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ASSEMBLY STANDING COMMITTEE ON GOVERNMENTAL OPERATIONS
ASSEMBLY STANDING COMMITTEE ON CITIES
ASSEMBLY STANDING COMMITTEE ON EDUCATION
ASSEMBLY STANDING COMMITTEE ON HIGHER EDUCATION
ASSEMBLY STANDING COMMITTEE ON LOCAL GOVERNMENTS
ASSEMBLY STANDING COMMITTEE ON SMALL BUSINESS

NOTICE OF PUBLIC HEARING


SUBJECT:

Examination of State and local procurement practices regarding centralized contracts and the impact they have on state agencies, political subdivisions, and small businesses.

PURPOSE:

To review the use of centralized contracts by state agencies, local governments, and school districts and to examine the impact of such use on small businesses.

Albany, NY
Tuesday, February 26, 2008
Hamilton Hearing Room B
Legislative Office Building, 2nd Floor
9:00 a.m.


Public procurement relies on competitive processes, set forth by Article 11 of the State Finance Law and Article 5-A of the General Municipal Law, to obtain commodities, services and technology. The Office of General Services (OGS) administers a large centralized contracts program for acquisitions of commodities, services and technology by state agencies, local governments, the educational community and certain not-for-profit organizations. The concept of which these contracts are based is the State looks at the combined and common needs of state agencies and authorized users and then leverages its buying power to achieve cost savings and efficiencies.

This hearing will review the benefits and disadvantages the use of centralized contracts have for the State, its local subdivisions, the educational community, and small businesses.

Please see the reverse side for a list of questions to which witnesses may direct their testimony, and for a description of the bills that will be discussed at the hearing.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.


RoAnn M. Destito, Chair
Committee on Governmental Operations

James Brennan, Chair
Committee on Cities

Catherine Nolan, Chair
Committee on Education

Deborah J. Glick, Chair
Committee on Higher Education

Sam Hoyt, Chair
Committee on Local Governments

Mark Weprin, Chair
Committee on Small Business



SELECTED ISSUES TO WHICH WITNESSES MAY DIRECT THEIR TESTIMONY:

  1. Do the provisions of the State Finance Law, specifically sections 163(3) and (4), limit state agencies' ability to use the bid process to obtain a commodity, service, or technology?

  2. How much annual business does the State procure through centralized contracts? Does the State save money through the use of centralized contracts? What percentage of purchases from centralized contracts are obtained from small businesses and MWBEs?

  3. How does the State leverage its buying power in order to minimize cost of commodities, services, and technology? How effective is the State in tracking and monitoring purchases made by all entities (State agencies, local governments, and not-for-profits) from centralized state contracts? Is this purchasing experience considered when the State negotiates a new contract for the same purpose?

  4. What impact have recent reforms in response to procurement wrongdoing and subsequent auditing had on the use of centralized contracts by school districts and local governments?

  5. Does the use of centralized contracts impede participation in state and municipal procurements by small businesses? What is the impact of centralized contracts on small businesses? What constraints, if any, limit small business participation in centralized contracts?

  6. What changes, if any, should be made to ensure that New York State is doing business with our small businesses?

  7. Should centralized contracts be expanded to include more types of services or commodities? Should participation in centralized contracts be changed?

  8. What impact would regional centralized contracts have on the State, local governments, and small businesses?

  9. What training, if any, should be required of state and local government procurement officers? Who should be responsible for providing the training?



PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing are requested to complete this reply form as soon as possible and mail it to:

Destiny DeJesus
Committee Assistant
Assembly Committee on Governmental Operations
AESOB - 22nd Floor
Albany, New York 12248
Email: dejesusd@assembly.state.ny.us
Phone: (518) 455-4355
Fax: (518) 455-7250


box I plan to attend the following public hearing on Procurement to be conducted by the Assembly Committees on Governmental Operations, Local Governments, Cities, Small Business, Higher Education, and Education and the Commission on Government Administration on February 26, 2008.

box I plan to make a public statement at the hearing. My statement will be limited to ten minutes, and I will answer any questions which may arise. I will provide 15 copies of my prepared statement.

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