New York Assembly Bill A00995

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Provides for the establishment of a method for determining the lowest responsible bidder when negotiating state contracts that would incorporate quantifiable fiscal benefits.

Summary

This bill would amend the state finance law to change how New York determines the “lowest responsible bidder” for certain state contracts. It directs the state comptroller, in consultation with state agencies, to create a method that accounts for quantifiable fiscal benefits in addition to the bid price itself. Those benefits could include where subcontractors are located, how many in-state jobs a contract would create, and the estimated tax revenue and related economic activity generated in New York. The bill states that these fiscal benefits should be subtracted from the actual bid amount when evaluating bids. The bill also creates an explicit in-state contractor preference for state contracts requiring bids. Under that provision, a bid submitted by an in-state contractor would be reduced by five percent for purposes of determining the low bid. To qualify, the contractor must be located in New York, hire a majority of New York resident employees, use in-state subcontractors whose employees are New York residents, and generate tax revenue and economic activity for the state. The act would take effect immediately if enacted.

Impact

If enacted, the bill would alter state procurement rules by adding economic-development factors to the bid evaluation process and by creating a statutory five-percent preference for qualifying in-state contractors. It would affect the state finance law, the comptroller’s procurement oversight role, and the way state agencies evaluate bids for public works and public purchases. Contractors outside New York could be disadvantaged relative to in-state firms, while New York-based businesses and their subcontractors could receive a competitive advantage in state contracting.

Sentiment

The available record shows no committee transcript or recorded votes, so there is no documented public debate or formal vote history to gauge sentiment. Based on the bill text alone, the measure appears designed to promote local economic benefits and support New York businesses, suggesting a pro-in-state, pro-jobs policy rationale. At the same time, the absence of discussion materials means there is no direct evidence of support or opposition from legislators, agencies, or stakeholders in the provided record.

Contention

The main point of contention is likely to be whether the state should prioritize local economic benefits over a strict lowest-price procurement standard. Supporters would likely argue that jobs, tax revenue, and local subcontracting should count as real fiscal benefits and that New York should favor in-state contractors. Opponents would likely raise concerns about reduced competition, higher contract costs, and possible conflicts with procurement fairness or legal requirements governing bidder preferences. The five-percent in-state preference is especially likely to be controversial because it gives a direct advantage to qualifying local firms.