State Finance Law 139-j: Ensuring Fairness in Government Procurement

State Finance Law (SFL) 139-j in New York State is a crucial piece of legislation designed to promote fairness, transparency, and integrity in the government procurement process. It aims to prevent undue influence and favoritism during contract negotiations and awards. Primarily, SFL 139-j addresses improper lobbying and attempts to influence government decision-making regarding procurement contracts.

Key Provisions

The law establishes specific rules governing permissible communications between potential vendors (offerers) and government agencies (governmental entities) during the “restricted period.” This period begins when a request for proposals (RFP), invitation for bids (IFB), or similar solicitation is issued, and ends when a contract is awarded. During this time, communications are generally restricted to designated contacts within the agency. These designated contacts are usually listed within the solicitation document itself. This ensures that all communication is channeled through appropriate personnel, creating a level playing field for all potential bidders.

Permissible Contact: All communications must be directed only to designated agency contacts, as specified in the procurement document.

Impermissible Contact: Direct contact with agency staff outside the designated contacts, such as program staff, managers, or executive level personnel who may have influence over the selection process, is prohibited.

SFL 139-j mandates that government entities must include specific language in their solicitation documents regarding permissible and impermissible contacts, as well as the consequences of violations. Offerers are required to affirm their understanding of and compliance with SFL 139-j by submitting a certification with their bid or proposal. This certification serves as a formal acknowledgment of their commitment to adhere to the law.

Furthermore, agencies are obligated to maintain a record of all contacts made during the restricted period, documenting the date, time, parties involved, and subject matter of the communication. This record promotes transparency and accountability, allowing for review and investigation if necessary.

Consequences of Violations

The consequences for violating SFL 139-j can be significant. If an offerer is found to have engaged in impermissible contact or violated the certification requirements, the governmental entity may disqualify the offerer’s bid or proposal. This could result in the loss of a potentially lucrative contract. Furthermore, violations can lead to a determination of non-responsibility, which could impact the offerer’s ability to secure future government contracts.

In addition to disqualification, deliberate or egregious violations can be referred to the Attorney General for further investigation and potential legal action. This demonstrates the seriousness with which the state takes violations of SFL 139-j.

Purpose and Impact

SFL 139-j plays a vital role in safeguarding the integrity of government procurement. By limiting undue influence and promoting fair competition, it ensures that contracts are awarded based on merit, price, and the best value for the state. This helps to build public trust in government and ensures that taxpayer dollars are used responsibly.

The law’s impact extends beyond individual procurement decisions. It fosters a culture of ethical behavior and transparency within government agencies and among potential vendors. By establishing clear rules and consequences, SFL 139-j helps to prevent corruption and promotes a level playing field for all participants in the government procurement process.