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.
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: http://www.ogs.state.ny.us/purchase/snt/sflxi.asp
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 Officer’s 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-a Financial Disclosure
Public Officers Law §74 Code of Ethics
Executive Law §94 Commission on Public Integrity;
Functions, Powers and Duties
Civil Service Law §107 Prohibition against certain
political activities; improper influence
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 ST220-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
on a tax-free basis 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 www.albany.edu/purchasing