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Home » US Law » 2022 New York Laws » Consolidated Laws » PBG - Public Housing » Article 8 - Provisions Relating to Approval, Construction, Management and Operation of Projects » 151 – Authority Construction Contracts, Cancellation of Contracts, Disqualification to Contract With Authority, Statement of Non-Collusion in Bids or Propos
§  151.  Authority  construction contracts, cancellation of contracts,
disqualification to contract with authority, statement of  non-collusion
in  bids  or  proposals.    1. Contracts of an authority for demolition,
excavation, construction, alteration,  renovation  or  for  purchase  of
materials or supplies shall be in such form and contain such combination
of  work  or  trades  and  such  terms  and  provisions as may be deemed
advisable by the authority. All such contracts, except contracts for the
purchase of materials or supplies, in excess of fifty  thousand  dollars
shall  be  made  on  sealed  bids,  in  compliance  with a public notice
advertised at least once, not less than twenty days before the date  set
for   the   receipt   of  bids,  in  the  official  publication  of  the
municipality, or if none exists,  in  a  newspaper  circulating  in  the
municipality. With respect to contracts for the purchase of materials or
supplies  in  excess  of  twenty-five  thousand  dollars,  the period of
advertisement shall be not less than ten days before the  date  set  for
the receipt of bids. If the authority shall deem it to its best interest
or  necessary or desirable to effectuate the purposes of this chapter or
the economy and efficiency in construction and operation of  a  project,
the authority by majority vote of its members may either reject all bids
or readvertise for bids or by unanimous vote of its members may accept a
bid  other  than  the  lowest  bid.  In  any  such contract there may be
inserted in the discretion of the authority, a provision that additional
work may be done or materials and supplies furnished  or  that  work  or
materials  may be omitted for the purpose of completing such contract in
accordance  with  any   changes,   omissions   or   additions   in   the
specifications of any such contract. Each contract shall provide that in
the  case of default by the contractor the authority may adopt on behalf
of the authority all subcontracts made by such contractor and  all  such
subcontractors  shall  be  bound  by  such  adoption  if  made,  and the
authority may relet, with or  without  public  advertisement,  the  work
specified  in  the  original  contract,  exclusive of so much thereof as
shall be provided in any subcontracts so adopted. An authority may  make
rules  and  regulations  governing  the  qualifications  of bidders, the
submission of combined bids by two or more contractors,  the  award  and
execution   of  the  contract,  security,  if  any,  for  execution  and
performance of the contract, and  any  other  matters  relating  to  the
contract.  The  bidding  may  be  restricted  to  those  who  shall have
qualified prior to the receipt of bids according to standards  fixed  by
the  authority,  provided  that  notice or notices for the submission of
qualifications shall be published in the  official  publication  of  the
municipality,  or  if  none  exists,  in  a newspaper circulating in the
municipality, at least once, not less than ten days prior  to  the  date
fixed  for  the filing of qualifications.  Nothing in this section shall
be construed to limit the power of the authority to carry out a  project
or  any part thereof directly by the officers, agencies and employees of
the authority, or by any government, or to purchase or acquire materials
or supplies through the purchasing officer, department or  agency  of  a
government.
  2.  A  clause  shall  be  inserted  in all specifications or contracts
hereafter made or awarded by any municipal housing authority or  by  any
official  of  any  municipal  housing  authority,  for  work or services
performed or to be performed or goods sold or to  be  sold,  to  provide
that  upon  the refusal by a person who directly or indirectly derives a
monetary benefit which is traceable to such a specification or contract,
when called before a grand jury to testify concerning any transaction or
contract had with the state or of any political subdivision  thereof,  a
public  authority,  a  municipal  housing  authority  or with any public
department, agency  or  official  of  the  state  or  of  any  political

subdivision thereof or of any public authority or of a municipal housing
authority  or  subcontract  thereunder,  to  sign  a  waiver of immunity
against subsequent  criminal  prosecution  or  to  answer  any  relevant
question concerning such transaction, contract or subcontract.

(a) Such person and any firm, partnership or corporation of which he is a member, partner, director or officer, shall be disqualified from thereafter selling to or submitting bids to or receiving awards from or entering into any contracts with any municipal housing authority or official thereof or any subcontract thereunder, or sub-contracting with any person, firm, partnership or corporation who or which has entered into any such contract or contracts, in relation to such contract or contracts, for goods, work or services, for a period of five years after such refusal. No person, firm, partnership or corporation who or which has entered into any contract or contracts with the state, or any political subdivision thereof, a public authority, a municipal housing authority, or with any public department, agency or official of the state or any political subdivision thereof or of any public authority, or of a municipal housing authority, for goods, work or services, shall enter into a sub-contract thereon with any person, firm or corporation which is disqualified to contract as provided herein. Such clause shall also provide that

(b) Any and all contracts made with any municipal housing authority or official thereof or any subcontract thereunder, since the effective date of this law, by such person and by any firm, partnership or corporation of which he is a member, partner, director or officer may be cancelled or terminated by the municipal housing authority without incurring any penalty or damages on account of such cancellation or termination, but any monies owing by the municipal housing authority or by a contractor or subcontractor thereunder for goods delivered or work done prior to the cancellation or termination shall be paid. 3. (a) Any person who, when called before a grand jury to testify concerning any transaction or contract had with the state, any political subdivision thereof, a public authority, a municipal housing authority or with a public department, agency or official of the state or of any political subdivision thereof or of a public authority or of a municipal housing authority, refuses to sign a waiver of immunity against subsequent criminal prosecution or to answer any relevant question concerning such transaction or contract, and any firm, partnership or corporation of which he is a member, partner, director or officer shall be disqualified from thereafter selling to or submitting bids to or receiving awards from or entering into any contracts with any municipal housing authority or any official of any municipal housing authority created by the state or any political subdivision, or sub-contracting with any person, firm, partnership or corporation who or which has entered into any such contract or contracts, in relation to such contract or contracts, for goods, work or services, for a period of five years after such refusal or until a disqualification shall be removed pursuant to the applicable provisions of law. No person, firm, partnership or corporation who or which has entered into any contract or contracts with the state, or any political subdivision thereof, a public authority, a municipal housing authority, or with any public department, agency or official of the state or any political subdivision thereof or of any public authority, or of a municipal housing authority, for goods, work or services, shall enter into a sub-contract thereon with any person, firm or corporation which is disqualified to contract as provided herein.

(b) It shall be the duty of the officer conducting the investigation before the grand jury before which the refusal occurs to send notice of such refusal, together with the names of any firm, partnership or corporation of which the person so refusing is known to be a member, partner, officer or director, to the superintendent of public works of the state of New York and the appropriate departments, agencies and officials of the state, political subdivisions thereof or public authorities with whom the person so refusing and any firm, partnership or corporation of which he is a member, partner, director or officer, is known to have a contract. 4. (a) Any firm, partnership or corporation which has become subject to the cancellation or termination of a contract or subcontract or disqualification to contract or subcontract on account of the refusal of a member, partner, director or officer thereof to waive immunity when called to testify, as provided in subdivisions two and three of this section, may, upon ten days' notice to the attorney general and to the officer who conducted the investigation before the grand jury in which the refusal occurred, make an application at a special term of the supreme court held within the judicial district in which the refusal occurred for an order discontinuing the disqualification. Such application shall be in the form of a petition setting forth grounds, including that the cooperation by petitioner with the grand jury at the time of the refusal was such, and the amount and degree of control and financial interest, if any, in the petitioning firm, partnership or corporation by the member, partner, officer or director who refused to waive immunity is such that it will not be in the public interest to cancel or terminate petitioner's contracts or subcontracts or to continue the disqualification, as provided in subdivisions two and three of this section. A copy of the petition and accompanying papers shall be served with the notices to be given pursuant to this subdivision.

(b) Upon the filing of such petition the court may stay as to petitioner, pending a decision upon the petition, the cancellation or termination of any contracts or subcontracts resulting from such refusal upon such terms as to notice or otherwise as may be just.

(c) At least two days prior to the return day, the officer who conducted the investigation before the grand jury and the attorney general may file answers to the petition or apply for an order dismissing the petition as a matter of law. On or before the return day the petitioner may file a reply to the answer.

(d) Upon the return day the court may, upon the petition and answer and other papers filed, forthwith render such final order as the case requires, or if a triable issue of fact is duly raised, it shall forthwith be tried before a court sitting without a jury or before a referee. The provisions of statute or rule governing references in an action shall apply to a reference under this subdivision.

(e) The court shall render a final order dismissing the petition on the merits or discontinuing the disqualification upon the ground that the public interest would be served by its discontinuance, and granting such other relief as to the cancellation or termination of contracts or subcontracts as may be appropriate, but without costs to petitioner. 5. (a) Every bid or proposal hereafter made to a municipal housing authority where competitive bidding is required by statute, rule or regulation, for work or services performed or to be performed or goods sold or to be sold shall contain the following statement subscribed by the bidder and affirmed by such bidder as true under the penalties of perjury: Non-collusive bidding certification.

(1) By submission of this bid, each bidder and each person signing on behalf of any bidder certifies, and in the case of a joint bid each party thereto certifies as to its own organization, under penalty of perjury, that to the best of his knowledge and belief:

(i) The prices in this bid have been arrived at independently without collusion, consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other bidder or with any competitor;

(ii) Unless otherwise required by law, the prices which have been quoted in this bid have not been knowingly disclosed by the bidder and will not knowingly be disclosed by the bidder prior to opening, directly or indirectly, to any other bidder or to any competitor; and

(iii) No attempt has been made or will be made by the bidder to induce any other person, partnership or corporation to submit or not to submit a bid for the purpose of restricting competition.

(2) A bid shall not be considered for award nor shall any award be made where (1) (i) (ii) and (iii) above have not been complied with; provided however, that if in any case the bidder cannot make the foregoing certification, the bidder shall so state and shall furnish with the bid a signed statement which sets forth in detail the reasons therefor. Where (1) (i) (ii) and (iii) above have not been complied with, the bid shall not be considered for award nor shall any award be made unless the municipal housing authority to which the bid is made determines that such disclosure was not made for the purpose of restricting competition. The fact that a bidder (a) has published price lists, rates, or tariffs covering items being procured, (b) has informed prospective customers of proposed or pending publication of new or revised price lists for such items, or (c) has sold the same items to other customers at the same prices being bid, does not constitute, without more, a disclosure within the meaning of paragraph (a) of this subdivision.

(b) Any bid hereafter made to any municipal housing authority by a corporate bidder for work or services performed or to be performed or goods sold or to be sold, where competitive bidding is required by statute, rule, regulation, or local law, and where such bid contains the certification referred to in paragraph (a) of this subdivision, shall be deemed to have been authorized by the board of directors of the bidder, and such authorization shall be deemed to include the signing and submission of the bid and the inclusion therein of the certificate as to non-collusion as the act and deed of the corporation. 6. Notwithstanding the provisions of any other law to the contrary, all contracts for public work awarded pursuant to this section by a municipal housing authority created under article thirteen of the public housing law shall be in accordance with sections one hundred six, one hundred six-a and one hundred six-b of the general municipal law.