Testimony Before the NYS Assembly Standing Committee On Cities in Support of Joint Bidding

December 19, 2024

Testimony Before the New York State Assembly Standing Committee On Cities

Re: Support for Joint Bidding

The New York Building Congress represents over 500 constituent organizations and over 250,000 skilled tradespeople and professionals dedicated to the growth and prosperity of our city. We strongly express our support for the Joint Bidding process, authorized by state law and currently under extension. It has demonstrated significant benefits in streamlining city infrastructure projects by combining municipal and utility work into a single contract.

Joint Bidding not only facilitates better coordination between the city, contractors, and utilities but also ensures that public works and utility upgrades are executed more efficiently. Collaboration with contractors and utility companies has been a focal point of regular meetings led by the Department of Design and Construction (DDC).

Since last fall, the DDC has been working to refine and enhance the framework for this initiative and committed to developing a Joint Bidding model that works for all parties, to be solidified by early 2025 at a later date in a Memorandum of Understanding. This MOU will further clarify roles and solidify commitments across all parties, which further supports the legislature’s move to extend Joint Bidding.

We support a revised Joint Bidding process that transitions from a utility price list to an open competitive bidding system, which has proven effective from 2016 to 2020. This approach encourages transparency and cost-effectiveness, ensuring that the lowest bids include both city and utility project items. The benefits of Joint Bidding are clear. Projects under this model have consistently shown reduced delays and fewer cost overruns compared to those negotiated separately under Section U.

Additionally, Joint Bidding allows utilities to share in the overhead costs, saving the city significantly—over $100 million annually. There is no discernible difference in the quality of work or minority and women-owned business enterprise (M/WBE) utilization between the two models, underscoring that Joint Bidding does not compromise on quality or inclusivity. It saves taxpayer dollars, without resulting in a worse product.

Adopting the proposed updates to Joint Bidding will ensure that New York continues to lead in innovative, cost-effective urban development. Let’s seize this opportunity to enhance our city’s infrastructure development through improved collaboration and efficiency. Thank you for your consideration.