Public Bidding and Contracts

• Author: Raymond S. DiRaddo
• Pages: 399-460

Chapter 8

Public Bidding and Contracts

§8:10 New York Fire District Officers’ Guide 8-2

§8:10 PUBLIC POLICY

The board of fire commissioners has the responsibility of purchasing items which are required for the operation

of the fire district, including purchasing the apparatus and equipment necessary to protect district residents as well as

providing for the care and upkeep of its fire stations. It is the policy of the State of New York that contracts for the pur-

chase of equipment or apparatus and contracts for public works—defined as the erection, construction, reconstruction

or alteration of buildings of the district—be governed by certain requirements. The reason for the requirements is to

assure the taxpayers of the prudent and economical use of public money and to ensure that the products purchased or the

facility being built achieves maximum quality at the lowest possible cost. General Municipal Law §100-a. The type of

project and the cost of the purchase or project determine the procedures that are followed. General Municipal Law §103.

§8:20 MONETARY LIMITS

§8:20.1 PUBLIC WORK THRESHOLDS

Currently, all contracts for public works involving an expenditure of more than $35,000 must be awarded to the

lowest responsible bidder, after an advertisement for sealed bids. A contract for public works is defined as agreements

for the erection, construction, reconstruction or alteration of buildings.

§8:20.2 MATERIAL AND APPARATUS PURCHASES AND SERVICE WORK

Any purchase of materials involving an expenditure of more than twenty thousand dollars ($20,000) must be awarded

to the lowest responsible bidder after advertisement for sealed bids. Purchase contracts include contracts for service work,

but do not include any purchase contracts necessary for the completion of a public works contract under Labor Law Article

8. Such purchase contracts shall be awarded to a responsive and responsible bidder or offerer on the basis of best value.

The purchase by a fire district of a fire-fighting vehicle from its fire department at a cost in excess of $20,000 is

subject to the competitive bidding. General Municipal Law §103; Opinion of the State Comptroller 86-67.

Even though the fire district used money specifically bequeathed for the purchase of a fire-fighting vehicle, the

purchase is subject to competitive bidding requirements. Opinion of the State Comptroller 81-187.

When a fire district acquires new equipment from a fire company in exchange for old equipment, this transaction

is to be viewed as a purchase by the fire district, subject to competitive bidding requirements. 26 Opinion of the State

Comptroller 17, 1970.

§8:20.2.1 BEST VALUE

Best value is the basis for awarding contracts for services to the offerer which optimizes quality, cost, and efficien-

cy, among responsive and responsible offerers. Such basis shall reflect, wherever possible, objective and quantifiable

analysis. Such basis may also identify a quantitative factor for offerers that are small businesses or certified minority-

or women-owned business enterprises. In evaluation of offers of awarding contracts for services, the Board of Fire

Commissioners may make use of best value for awarding a purchase contract provided that best value must be autho-

rized, in the case of a fire district by rule, regulation, or resolution adopted at a public meeting.

In any case where a responsible bidder’s or responsible offerer’s gross price is reducible by an allowance for the

value of used machinery, equipment, apparatus or tools to be traded in by the fire district the gross price shall be

reduced by the amount of such allowance, for the purpose of determining the best value.

§8:20.2.1.1 CERTIFIED BUSINESS

“Certified business” shall mean a business verified as a minority- or women-owned business enterprise under the

Executive law §314.

8-3 Public Bidding and Contracts §8:20

§8:20.2.1.2 MINORITY-OWNED BUSINESS ENTERPRISE

A minority-owned business enterprise means a business enterprise, including a sole proprietorship, partnership or

corporation that is:

(a) At least fifty-one percent owned by one or more minority group members;

(b) An enterprise in which such minority ownership is real, substantial, and continuing;

(c) An enterprise in which such minority ownership has and exercises the authority to control independently the

day-to-day business decisions of the enterprise;

(d) An enterprise authorized to do business in this state and independently owned and operated;

(e) an enterprise owned by an individual or individuals, whose ownership, control, and operation are relied upon

for certification, with a personal net worth that does not exceed three million five hundred thousand dollars,

as adjusted annually on the first of January for inflation according to the consumer price index of the previous

year; and

(f) An enterprise that is a small business pursuant to subdivision twenty of this section. Executive Law §310(7).

§8:20.2.1.3 WOMEN-OWNED BUSINESS ENTERPRISE

A women-owned business enterprise means a business enterprise, including a sole proprietorship, partnership, or

corporation that is:

(a) At least fifty-one percent owned by one or more United States citizens or permanent resident aliens who are women;

(b) An enterprise in which the ownership interest of such women is real, substantial, and continuing;

(c) An enterprise in which such women ownership has and exercises the authority to control independently the

day-to-day business decisions of the enterprise;

(d) An enterprise authorized to do business in this state and independently owned and operated;

(e) an enterprise owned by an individual or individuals, whose ownership, control, and operation are relied upon

for certification, with a personal net worth that does not exceed three million five hundred thousand dollars,

as adjusted annually on the first of January for inflation according to the consumer price index of the previous

year; and

(f) An enterprise that is a small business pursuant to subdivision twenty of this section.

§8:20.2.1.4 CERTIFIED AS BOTH A MINORITY-OWNED BUSINESS ENTERPRISE AND A

WOMEN-OWNED BUSINESS ENTERPRISE

A firm owned by a minority group member who is also a woman may be certified as a minority-owned business

enterprise, a women-owned business enterprise, or both, and may be counted towards either a minority-owned business

enterprise goal or a women-owned business enterprise goal, in regard to any contract or any goal, set by an agency

or authority, but such participation may not be counted towards both such goals. Such an enterprise’s participation in

a contract may not be divided between the minority-owned business enterprise goal and the women-owned business

enterprise goal. Executive Law §310(15).

§8:20.2.1.5 SMALL BUSINESS

This is defined as business which has a significant business presence in the state, is independently owned and

operated, not dominant in its field, and employs, based on its industry, a certain number of persons as determined by

the director, but not to exceed three hundred, taking into consideration factors which include, but are not limited to,

federal small business administration standards. 13 CFR part 121. Executive Law §310(20).

§8:20.2.2 THE DISTRICT PROCUREMENT POLICY

All contracts for public works involving an expenditure of less than $35,000 and all public purchases involving an

expenditure of less than $20,000 must be awarded according to the fire district procurement policy.