SEABURY CONSTRUCTION CORP. V. DEPARTMENT OF ENVIRONMENTAL PROTECTION

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SEABURY CONSTRUCTION CORP. V. DEPARTMENT OF ENVIRONMENTAL PROTECTION

COMMENT

The price preference program for minority-owned and woman-owned business enterprises and qualified joint ventures in public works procurement projects with the City of New York was declared invalid by the New York State Supreme Court of New York County.1 The City had implemented a price preference procurement program under the authority of the New York City Charter (“NYC Charter”), which generally requires that all competitive procurements using sealed bids be awarded to the lowest responsible bidder. Section 313(b)(2) of the NYC Charter has an exception to the general rule:
The agency letting the contract … shall … award the contract to the lowest responsible bidder, unless the mayor shall determine … that it is in the best interest of the city that a bid other than that of the lowest responsible bidder shall be accepted.
In 1991, a new NYC Charter section was added which required the Department of Business Services to promulgate rules to ensure meaningful participation of minority-owned and woman-owned businesses in the City’s procurement procedures. The rules which were promulgated established a 10 percent “target percentage” for minority-owned and woman-owned businesses, and qualified joint ventures. If a bid from a minority-owned or woman-owned business, or a qualified joint venture was not the lowest bid, but was within the target percentage of the lowest bid, then the purchasing agency ...

Submitted by: digitalessays
Date Submitted: 05-21-03 1:09am
Category: Politics
Words: 1641
Pages: 6.56