New York Laws
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.

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