August 31, 2011
| Albany, NY
To All State Agencies and Others Authorized to Use State Contracts:
State agencies, political subdivisions and public benefit corporations (which include most public authorities), are reminded of their obligations under State Finance Law, Article 11, Section 162 when acquiring commodities and services. When a commodity or service desired by a state agency, political subdivision or public benefit corporation (including most public authorities) is available from a preferred source in the form, function and utility required, and the price, as determined by OGS, is no more than 15 percent above the prevailing market rate (or, in the case of Correctional Industries, the price of the commodity does not exceed a reasonable, fair market rate as determined by the Department of Correctional Services), the state agency, political subdivision or public benefit corporation must purchase that commodity or service from a preferred source. When doing so, these entities must adhere to the priority that has been accorded to the various preferred sources in State Finance Law §162.
Preferred Source guidelines approved and issued by the New York State Procurement Council as well as a list of Preferred Source offerings are available on the OGS website to assist in making such purchases. Below is a link to the guidelines.
http://www.ogs.state.ny.us/procurecounc/pdfdoc/psguide.pdf
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