Office of Purchasing and Contracts Procurement Outreach Training Level II - Module D State Finance Law; Ethics; OMB Guidelines

Laws, Rules, Regulations and Guidelines The procurement of goods and services entails the following of numerous laws, rules, regulations and guidelines. State purchases are enforced at the Federal, State, SUNY and Campus levels both prior and after the procurement. A summary of the these laws, rules, regulations and guidelines can be found at:

Laws, Rules, Regulations and Guidelines The Procurement Lobbying Act Consultant Disclosure Vendor Responsibility Apparel Workers Fair Labor Conditions Financial Privacy NYS Tax Law Section 5-a Split Ordering

State Finance Law Operating principles. The objective of state procurement is to facilitate each state agency's mission while protecting the interests of the state and its taxpayers and promoting fairness in contracting with the business community. For the full text of the state procurement law please go to:

State Finance Law Highlights To promote purchasing from responsive and responsible offerors, including small businesses. To be based on clearly articulated procedures which require a clear statement of product specifications, requirements or work to be performed; a documentable process for soliciting bids, proposals or other offers; a balanced and fair method, established in advance of the receipt of offers, for evaluating offers and awarding contracts; contract terms and conditions that protect the state's interests and promote fairness in contracting with the business community; and a regular monitoring of vendor performance.

State Finance Law Highlights To encourage the investment of the private and not-for-profit sectors in New York state by making reasonable efforts to ensure that offerers are apprised of procurement opportunities; by specifying the elements of a responsive bid and disclosing the process for awarding contracts including, if applicable, the relative importance and/or weight of cost and the overall technical criterion for evaluating offers; and by ensuring the procurement is conducted accordingly. To ensure that contracts are awarded consistent with the best interests of the state. To ensure that officers and employees of state entities do not benefit financially or otherwise from the award of state contracts. To ensure regular and critical review of the efficiency, integrity and effectiveness of the overall process.

Public Officers Law No officer or employee of a state agency, member of the legislature or legislative employee should have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature, which is in substantial conflict with the proper discharge of his duties in the public interest.

Ethics Laws Public Officers Law §73 Business or professional activities by state officers and employees and party officers; restrictions on the activities of current and former state officers and employees Public Officers Law §73 Public Officers Law §73-a Financial Disclosure Public Officers Law §73-a Public Officers Law §74 Code of Ethics Public Officers Law §74 Executive Law §94 Commission on Public Integrity; Functions, Powers and Duties Executive Law §94 Civil Service Law §107 Prohibition against certain political activities; improper influence Civil Service Law §107

New York State Tax Law Section 5-a Contractors awarded state contracts valued at more than $100,000 are required to certify that they are registered to collect NYS and local sales and compensating taxes. Two certification documents are required: Certifying with the NYS Tax Department via Form ST- 220-TD. Certifying with the University via Form ST-220-CA that Form ST-220-TD was filed with the NYS Tax Department.

Split Ordering In order to prevent breaching discretionary thresholds, the University is required to monitor open market purchases by commodity/service below $50,000 over a 12 month period beginning on the date of purchase. Even though a specific purchase may be below the discretionary amount of $50,000 if it takes the 12 month total for that commodity/service over $50,000 the University is required to follow all procurement guidelines, including placing an individual advertisement and obtaining 3 quotes. These necessary steps may result in a delay in the procurement.

Workers Compensation Insurance Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment. Prior to any permit being issued or any contract being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured workers compensation insurance. Please contact the Office of Purchasing and Contracts for additional information.

Disability Insurance Disability insurance replaces a workers income should a sickness or illness prevent the worker from earning an income. Prior to any permit being issued or any contract being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured disability insurance. Please contact the Office of Purchasing and Contracts for additional information.

In closing…. There are many levels of procurement, with unique requirements and regulations. Thank you for taking time to review this information. Additional training presentations can be found at our website at