Contract Procurement: Overcoming barriers to New York businesses

ALBANY, N.Y. (12/19/2013)(readMedia)-- The Public Policy Institute of New York State, Inc. (PPI), the research and education arm of The Business Council of New York State, Inc. released an in-depth study on contract procurement. The report, Re-examining Issues in Procurement, addresses the challenges companies face when doing business with state and local governments.

"Antiquated state procurement laws and regulations inhibit many companies from competing to do work for the state and municipalities," said Heather C. Briccetti, Esq., president and CEO of The Business Council of New York State, Inc. "Modern technology is not fully utilized in the procurement process, leaving many companies with no clear path for doing business. Additionally, the lines of communication between vendors and government are sometimes unclear."

The PPI report concludes New York state needs to modernize its procurement process with innovative best practices for the benefit of taxpayers, current vendors and the very companies the state is trying to attract through regional councils and programs like and Start-UP NY. The current process is cumbersome and can cause delays and increase costs for all parties.

The recommendations in the report show what can be done to increase competition, streamline the procurement process, and open avenues of communication between the vendor community and the state. For example, performance guarantees, especially letters of credit, while necessary in some instances to protect the interests of the state and taxpayers, can be onerous for businesses of all sizes.

PPI reached out to procurement experts representing small businesses, Fortune 500 companies, local government purchasing officers and others, to identify procurement issues facing businesses.

PPI is a non-partisan, tax-exempt 501 (c) 3 organization. It does not accept public funds and depends on the support of corporations, foundations and individuals.

To view the report, visit the PPI website at ppinys.org.