Important Changes to NYS Procurement Requirements

[Administration and Finance]

SENT ON BEHALF OF TODD MORAVEC, INTERIM VP FOR ADMINISTRATION AND FINANCE

Colleagues:

I am writing to share an important update regarding recent changes to NYS
procurement requirements impacting SUNY and our campus.

On February 27, 2023, the Legislature passed A00624 / S02219, which was
signed into law by Governor Hochul on March 3, 2023. This bill rescinds the
pre-existing procurement flexibility SUNY has enjoyed since 2011 and
establishes new oversight authority for the Office State Comptroller (OSC)
and Office of the Attorney General (OAG) on certain procurements.

*Major Changes*
Under NYS Finance Law, procurements must be reviewed by OAG and OSC prior
to final approval when the value of a procurement reaches a specific
dollar-threshold.  The new law significantly reduces the threshold amount
and will result in an increase in the number of procurements that require
OAG and OSC approval.

   - Under the new rules, purchases in excess of $75,000 will be reviewed
   by OAG and OSC instead of the previous threshold of $250,000.  In addition,
   pre-approval is required for certain purchases from NYS Centralized
   Contracts.
   - Under the new law, OSC has 75 days to complete their review instead of
   the previous review period of 30 days.

*Impact and Guidance*

   - In the future, more purchases will require OAG and OSC approval and
   the review period for these purchases may be longer than in the past.
   - Departments with procurements that exceed the new thresholds are
   advised to plan accordingly to provide sufficient time for the additional
   75-Day OSC review process.
   - Regional Procurement Services is currently identifying existing
   procurements that are impacted by the new law and will be in touch with
   departments with upcoming contract renewals.

*Additional Resources*
Further information regarding this matter can be found in the documents
below, which are also posted on our How to Buy
<https://www.plattsburgh.edu/about/offices-divisions/administration-finance/financial-services/making-purchases-payments/purchasing/index.html>
 Website.

   - Memorandum to Campus
   <https://drive.google.com/file/d/1lKQbuX1H5khmJ22rkQxjWl7EtrbQlpN7/view?usp=share_link>
   - Procurement Threshold Matrix
   <https://drive.google.com/file/d/15Mh26QFhEcFXji6K1aSlR8j_qcM5txdO/view>
   - Comparison of Procurement Law Changes
   <https://drive.google.com/file/d/1m1yiXphXawbEXvgCzh96Y8GHlkzTxOtn/view>

Questions regarding this matter or departments with upcoming new
procurements are encouraged to contact Sean Dermody, Assistant VP for
Regional Procurement Services, or Jenna Beauregard, Director of Contracts
and Purchasing Services.
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