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1 INTRODUCTION The underlying purposes of these rules are to simplify, clarify and modernize the law governing procurement by the City of New York; to permit the continued development of procurement policies and practices; to make as consistent as possible the uniform application of these policies throughout New York City agencies; to provide for increased public confidence in New York City's public procurement procedures; to ensure the fair and equitable treatment of all persons who deal with the procurement system of the City of New York; to provide for increased efficiency, economy, and flexibility in City procurement activities and to maximize to the fullest extent the purchasing power of the City; to foster effective broad-based competition from all segments of the vendor community; including small businesses, minority and women-owned and operated enterprises; to safeguard the integrity of the procurement system and protect against corruption, waste, fraud, and abuse; to ensure appropriate public access to contracting information, and to foster equal employment opportunities in the policies and practices of contractors and subcontractors wishing to do business with the City.

2 The official text to the procurement Policy Board rules can be found in The rules of the City of New York, Volume 4, New York Legal Publishing Corporation, 136 Railroad Ave. Ext., Albany, New York 12205, website: , telephone (518) 459-1100 or (800) 541-2681. This copy of the rules , while not official, is, to the best of our knowledge, complete and accurate at the time of its printing. For an electronic version of the rules , proposed and final rule amendments since the publication date, please see the procurement Policy Board's webpage on the New York City website at TABLE OF CONTENTS CHAPTER 1 GENERAL PROVISIONS Section 1-01 USE OF LANGUAGE IN THESE rules (a) Singular-Plural and Gender rules ..1 (b) Titles ..1 (c) Listing(s) Not Indicative of Order of Preference ..1 (d) Meanings ..1 (e) Section 1-02 APPLICABILITY OF PPB rules (a) General Applicability ..11 (b) procurement by Independently Elected Officials.

3 11 (c) procurement by Other Public (d) procurement Requirements Prescribed by Entities External to the City or other Applicable Law ..12 (e) Procurements Funded by Line Item Appropriations or Discretionary Funds ..12 (f) Transactions Not Subject to These rules ..12 (g) Severability ..13 (h) Ratification of Minor rules (i) General Delegability of Authority ..14 Section 1-03 POLICY STATEMENTS (a) (b) Economic and Financial Opportunity ..15 (c) Equal Employment Opportunity ..15 Section 1-04 CONTRACT INFORMATION (a) Agency Contract Files ..16 (b) Electronic Documents and Signatures ..16 (c) Retention of Contract Files ..16 (d) Requests by Elected Officials for Contract Documentation ..16 (e) Central Contract Registry ..17 iCHAPTER 2 procurement PROCESS Section 2-01 DECISION TO PROCURE TECHNICAL, CONSULTANT, OR PERSONAL SERVICES ..18 Section 2-02 PRESOLICITATION REVIEW (a) Definition ..18 (b) Policy ..18 (c) Categorical Review.

4 19 (d) Report ..19 Section 2-03 COST REIMBURSEMENT CONTRACTS ..19 Section 2-04 MULTI-TERM CONTRACTS (CLIENT SERVICES) (a) (b) Policy ..20 (c) Planning ..20 (d) Determination and Approvals ..21 (e) Permitted Length of Contract Terms ..22 Section 2-05 SPECIFICATIONS (a) Policy ..23 (b) Authority to Contract for Drafting of Specifications ..23 (c) Brand Name Specifications ..24 Section 2-06 PRICE/COST ANALYSIS ..24 Section 2-07 RESPONSIVENESS OF BIDS/PROPOSALS (a) Policy ..24 (b) Determination of (c) Standards ..25 (d) Rejection of Bids or Proposals ..26 (e) Appeal ..26 ii Section 2-08 VENDOR RESPONSIBILITY AND APPEAL OF DETERMINATION OF NON-RESPONSIBILITY (a) Policy ..26 (b) General Standards ..27 (c) Special Standards ..27 (d) Ability To Meet Standards ..28 (e) VENDEX Questionnaire ..28 (f) Department of Investigation ..34 (g) Making the Responsibility Determination ..34 (h) Determination of Non-Responsibility Required ..35 (i) Determination of Non-Responsibility.

5 35 (j) Notice ..36 (k) Appeal to Agency Head ..36 (l) Stay of Award of Contract Pending Agency Head Decision ..37 (m) Appeal to Mayor ..37 (n) Stay of Award of Contract Pending Decision By Mayor or His Designee ..38 (o) Documentation ..38 (p) Rehabilitation of Vendors and Section 2-09 RECOMMENDATION FOR AWARD (a) Policy ..41 (b) Content ..41 Section 2-10 VENDOR PROTEST (a) Protests ..42 Section 2-11 PUBLIC HEARING REQUIREMENTS (a) Application ..43 (b) Exemptions ..43 (c) Public Notice ..44 (d) Record ..45 iiiSection 2-12 CONTRACT REGISTRATION (a) Applicability ..45 (b) Registration Not Required ..45 (c) Documentation ..46 (d) Date of Filing ..47 (e) Exceptions ..47 (f) Refusal of Comptroller to Register the Contract ..48 CHAPTER 3 METHODS OF SOURCE SELECTION Section 3-01 POLICY (a) Methods of Source Selection ..49 (b) Preference for Competitive Sealed Bidding ..49 (c) Preference for Competitive Sealed Proposals in Certain Contracts.

6 49 (d) "Special Case" ..49 Section 3-02 COMPETITIVE SEALED BIDDING (a) Application ..51 (b) Invitation for Bids ..51 (c) Bidding Time ..54 (d) Bidder Submissions ..54 (e) Public Notice ..54 (f) Bidders Lists ..56 (g) Prequalified Vendor Lists ..57 (h) Pre-Bid or Pre-Solicitation Conferences ..57 (i) Amendments to IFBs ..57 (j) Pre-Opening Modification or Withdrawal of Bids ..58 (k) Late Bids, Late Withdrawals, and Late Modifications ..58 (l) Receipt, Opening, and Recording of Bids ..58 (m) Mistakes in Bids ..59 (n) Withdrawal of Bids ..61 (o) Bid Evaluation and Vendor Selection ..61 (p) Low Tie (q) Single (r) Alternate Bids ..62 (s) Multi-Step Sealed Bidding ..62 (t) Selection of Other Than Lowest Bidder ..63 (u) Rejection of (v) Resolicitation in Cases of Failed Bids Due to Defects in the Solicitation Documents ..63 (w) Disposition of Bids ..64 ivSection 3-03 COMPETITIVE SEALED PROPOSALS (a) The Request for Proposals (RFP) - Contents.

7 64 (b) Client Services (c) Proposal Preparation Time and Form ..69 (d) Public Notice ..69 (e) Competitive Sealed Proposals from Prequalified Vendors List ..71 (f) RFP Handling Procedures ..71 (g) Evaluation Process ..72 (h) Construction-Related Services ..75 (i) Mistakes in Proposals ..76 (j) Multiple Award Task Order Contracts ..77 (k) Vendor Selection and Documentation ..78 Section 3-04 NEGOTIATED ACQUISITION (a) Policy ..79 (b) Procedures ..79 (c) Investment Services ..81 (d) Public Notice ..82 Section 3-05 SOLE SOURCE procurement (a) Conditions for Use ..83 (b) Determination ..83 (c) Public Notice ..84 (d) Approvals ..85 Section 3-06 EMERGENCY PURCHASES (a) Definition of Emergency Conditions ..85 (b) Scope ..86 (c) Authority to Make Emergency Purchases ..86 (d) Source (e) Public Notice and Filing Requirements ..86 (f) Notice of Award ..87 vSection 3-07 ACCELERATED procurement (a) Definition ..87 (b) Eligible Markets ..88 (c) Designation of Specific Commodities within Eligible Markets.

8 88 (d) Methods of procurement ..88 (e) Exemptions from Certain Requirements ..88 (f) Authority to Make Accelerated Procurements ..89 (g) Filing Requirements ..89 (h) Public Notice ..89 Section 3-08 SMALL PURCHASES (a) Definition ..90 (b) Application ..90 (c) Scope ..90 (d) Award ..92 (e) Record ..92 Section 3-09 INTERGOVERNMENTAL AND COOPERATIVE PURCHASES (a) Intergovernmental Purchasing ..93 (b) Cooperative Purchasing ..93 (c) Responsibility Determination ..93 (d) Public Notice of Award ..93 (e) Record ..94 Section 3-10 PREQUALIFICATION (a) Policy ..95 (b) "Special Case" Determination ..95 (c) Circumstances of Use ..95 (d) Criteria ..95 (e) Public Notice ..96 (f) Questionnaire ..97 (g) Making the Prequalification Decision ..97 (h) Solicitation from a PQL ..97 (i) Selective Solicitation from a PQL ..98 (j) Prequalification Not a Finding of Responsibility ..99 (k) PQL of Auditors ..99 (l) Denial or Revocation of Prequalification ..99 (m) Appeal of Denial or Revocation of Prequalification.

9 100 viSection 3-11 DEMONSTRATION PROJECTS FOR INNOVATIVE PRODUCTS, APPROACHES, OR TECHNOLOGIES (a) Policy and Purpose ..101 (b) Preliminary (c) Determination ..101 (d) Contract Term ..102 (e) Notice ..102 (f) Evaluation ..103 (g) Negotiations ..103 (h) Notice of Award ..103 (i) Conclusion of Demonstration Project ..104 Section 3-12 INNOVATIVE procurement METHODS (a) Purpose ..104 (b) Prerequisites for Using Innovative procurement Methods ..104 (c) Determinations ..105 (d) Copies ..105 (e) Notice of Award ..105 (f) Evaluation ..106 Section 3-13 GOVERNMENT-TO-GOVERNMENT PURCHASES (a) Policy ..106 (b) Preliminary (c) Determination ..106 (d) Public Notice ..107 (e) Notice of Vendor Selection ..107 Section 3-14 CONTRACTS FOR SERVICES (a) Authority to Award ..108 (b) Public Notice ..108 viiCHAPTER 4 CONTRACT ADMINISTRATION Section 4-01 EVALUATION AND DOCUMENTATION OF VENDOR PEFORMANCE (a) Criteria ..109 (b) Frequency ..109 (c) Report and Vendor (d) Contract Termination.

10 109 (e) Client Services ..109 Section 4-02 CONTRACT CHANGES (a) Policy ..110 (b) Types of Changes Permitted ..110 (c) Adjustments of Price or Time for Performance ..111 (d) Documentation ..111 Section 4-03 EXTENSIONS OF TIME FOR PERFORMANCE (a) Application ..112 (b) Goods and Non-Construction Related Services ..112 (c) Construction ..112 Section 4-04 RENEWALS (a) Defined ..114 (b) Renewals Not Permitted ..114 (c) Recommendation for Renewal ..114 (d) Notice and Publication Requirements for Client Services Renewals ..116 (e) Public Hearing Requirements ..117 (f) Notice of Award ..117 Section 4-05 QUALITY ASSURANCE, INSPECTION, AND TESTING ..117 viiiSection 4-06 PROMPT PAYMENT (a) Policy ..118 (b) (c) Standards for Prompt Payment ..119 (d) Interest Eligibility and Computation ..121 (e) Additional Requirements for Construction and Construction-Related Services Contracts ..122 (f) Determination of Appropriations Against Which Interest Penalties Shall Be Charged.