How to sell to New York counties

New York has 62 counties. Five are the boroughs of New York City, which has its own procurement rules. The other 57 buy under the General Municipal Law (GML), which covers all political subdivisions, and County Law 408-a. Some counties have charters with a county executive and legislature; others are run by a board of supervisors. Both are bound by GML 103. Below the bid thresholds, each county writes its own procurement policy.

At a glance

Who buys

Most counties are governed by an elected county legislature or board of supervisors, often with a county executive or administrator. Larger counties have a purchasing department. County officers, boards and agencies must award purchase and public work contracts to the lowest responsible bidder after advertising where GML 103 requires. The board or legislature may require bidding even below the GML 103 amounts, and may let other local governments buy off county contracts (County Law 408-a). Charter-specific purchasing rules were not reviewed; ask the county.

Goods and services

Splitting purchases to stay under a threshold is not allowed (GML 103).

Below the thresholds. Every county must adopt written procurement policies for purchases that do not require bids. The policies call for alternative proposals or quotes, such as written RFPs or written or verbal quotes. The statute sets no number of quotes. Each procurement must be documented, any award to someone other than the lowest responsible offeror must be justified in writing, and the board reviews the policy every year (GML 104-b).

Construction and public works

• Threshold: public work contracts over $35,000 require sealed bids (GML 103(1)). Smaller jobs follow the county's 104-b policy.
• Wicks Law: public building projects need separate specifications for plumbing, HVAC and electrical work above $500,000 in most counties, $1.5 million in Nassau, Suffolk and Westchester, and $3 million in the five New York City counties (GML 101).
• Bid security: no statewide statute found. Counties set it in their bid specifications; check the solicitation.
• Bonds: State Finance Law 137 requires a payment bond on public improvements by a "municipal corporation." Bonds may be waived for contracts under $100,000, with 20% withheld from progress payments instead. The statute's text refers to improvements "for the state," so its application to county projects is not confirmed. No general statute requires a performance bond from county contractors, though GML 106-b assumes many counties require full bonds. Check the solicitation.

Notice and award

• Notice: in the county's official newspaper or a designated newspaper. Counties may also use the state procurement opportunities newsletter. At least 5 days must pass between first publication and the opening, and the notice states the time and place of the public opening (GML 103(2)).
• Electronic bids: allowed if the county authorizes them by resolution (GML 103(1)). This version of the law is set to sunset June 1, 2028.
• Award: to the lowest responsible bidder. Purchase contracts, but not public works, may be awarded on best value as defined in State Finance Law 163, if the county authorizes it by local law. Ties may go to any tied bidder or be rebid (GML 103(1)).
• Iran: persons on the state's Iran divestment list are not responsible bidders (GML 103-g).

Prevailing wage

Labor Law 220 applies to public work contracts of municipal corporations, including counties, with no minimum contract value. For county work outside New York City, the Commissioner of Labor is the fiscal officer who sets rates (Labor Law 220(2), (5)(e)). See prevailing wage.

Getting paid

On public works contracts with counties outside New York City (GML 106-b):

• Prompt payment: the county pays within 30 days, excluding legal holidays, of an approvable requisition, or 45 days if an elected official must approve it. Late payments earn interest at the state Tax Commissioner's overpayment rate (none if under $10).
• Subcontractors: the contractor pays subs within 7 days of receiving payment.
• Retainage: no more than 5% of each progress payment. Up to 10% is allowed only if the county does not require both full performance and payment bonds.
• Release: after substantial completion, the county gives a punch list within 45 business days and pays the balance, less twice the value of unfinished items and claims.

No county prompt payment statute for goods and services was found; check the contract.

Cooperative purchasing and state contracts

• OGS contracts: counties may buy through state Office of General Services contracts for purchases over $500. A county that has already received bids may use OGS only if the OGS price is lower for the same terms (GML 104).
• Piggybacking: counties may buy apparatus, materials, equipment, supplies and related installation, maintenance and repair services off federal, state or other local contracts that were let to the lowest responsible bidder or on best value and made available to others. MWBE and preferred-source rules still apply (GML 103(16)). This authority sunsets June 30, 2027 unless extended.
• GSA Schedule 70: allowed under GML 103(1-b), which sunsets July 31, 2029.
• County contracts: a county board may open its contracts to other local governments (County Law 408-a(2)).

See cooperative purchasing.

Preferences and required certifications

• Non-collusion: every bid where competitive bidding is required must include a non-collusive bidding certificate (GML 103-d).
• Iran divestment: bids to political subdivisions must include an Iran Divestment Act certification (GML 103-g).
• Preferred sources and MWBE: state preferred-source (State Finance Law 162) and MWBE requirements are not waived by piggybacking (GML 103(16)).
• Federal labor violations: counties may consider Davis-Bacon, Copeland and Contract Work Hours Act violations in judging responsibility (GML 103(1-c), sunset March 18, 2027).
• Local, veteran or in-state preferences, E-Verify and Israel boycott: none found for counties; check the solicitation.

Architects and engineers

Architects, engineers and other professional services are excepted from GML 103 bidding. Counties buy them under their 104-b policies, usually by RFP, and price need not be the only factor (OSC, Seeking Competition in Procurement). We did not find a state qualifications-based selection mandate for counties.

Practical tips for New York

• Ask for the county's 104-b procurement policy to learn its quote rules below $20,000 and $35,000.
• Watch the official newspaper and the state procurement newsletter. Notices can run just 5 days before opening.
• Price prevailing wages into every public works bid, however small (Labor Law 220).
• Include the non-collusion and Iran certifications with every formal bid (GML 103-d; 103-g).
• Check New York counties for each county's bid platform, contacts and agendas.