Intro to the System
The need for a comprehensive, standardized system that governs the New York State procurement process has never been greater. The New York State Contracts System is a web-based application that streamlines, organizes, and standardizes the State procurement process. Everyone who does business with the State in some capacity is involved in the contracts system, which includes, but is not limited to, contract managers, staff of purchasing agencies, contractors and vendors. The NYS Contracts System also integrates with the Statewide Financial System (SFS), the Grants Gateway, and other systems. The SFS will manage the payment of all contracts and serve as the repository for electronic payments.
The NYS Contracts System stores all NYS state agency contract information; ensures NYS regulations are followed; maintains a history of all information; improves communication between State purchasing agencies , contractors, and service providers; provides better access to current and historical information for use by State agencies; creates a link to the SFS; and provides general reports and notifications. The NYS Contract System also reduces inconsistences through the development of a variety of processes, procedures, and forms, some of which replace or enhance manual processes and procedures. Although most of the information contained in the NYS Contract System is available publicly, you may need authorization, such as a business purpose, before gaining access to a certain page or record.
How It Operates
The centralized NYS Contracts System works as a system of checks and balances. Prior to the implementation of the NYS Contracts System, agencies were often left alone to negotiate and execute their own contracts. Now, the process is simplified for the State, while increasing the value received for the taxpayer’s dollar. The State which includes every State agency, office, board, commission, public authority, public benefit corporation and any State instrumentality with the payment of funds or the issuance of obligations. The State publishes a contracting calendar annually, outlining the solicitation schedule for each Standardized Contract. Contracts are posted for competitive solicitation via the NYS Contract System. Contract Proposals for every proposed project are submitted electronically to designated Procurement Officers for review. The Procurement Officers then consolidate all relevant Contract Proposals and prequalify selected bidders. All qualified bidders are registered in the NYS Contract System, at which time they are notified of their prequalification. Final review of Contract Proposals and award recommendation is completed by vertical teams with Division of Budget and Counsel involved in the review of high-value contracts. When contracts are awarded, legislative notifications are published in the NYS Contracts Reporter, and contracts are made available for viewing on the NYS Contracts System website.
Contract Types Managed
The NYS Contracts System is a comprehensive tool that has the ability to manage most, if not all, of the contracts an agency may have. This includes construction contracts, service agreements, supply contracts, and a multitude of other contract types. The system is currently able to manage contracts with a value of up to $25 million.
Service Contracts
All State agencies that either have their own contracting authority or can utilize contracts through the OGS’ centralized system of contracts must post all new Service Contracts through the NYS Contracts System. A Service Contract is typically defined as any contract where the primary purpose is for the performance of services.
Supply Contracts
Most State agencies are also required to post their Supply Contracts on the NYS Contracts System even if they do not have their own authority for contracting. Supply Contracts are typically defined as all contracts where the primary purpose is providing goods and materials.
Construction Contracts
Despite being identified as a separate listing type under the "contract types" drop-down menu, a Construction Contract is still considered a Service Contract under the NYS Contracts System. The only difference is the system applies standardized terms and conditions for construction contracts to expedite posting. Note: this means any contract with construction terms and conditions must be posted in the "Construction Contracts" category for the Attorney General’s review and comment.
Advantages of the NYS Controls System
With regard to the contracts, the system will enable the State and the Office of the State Comptroller (OSC) to delegate a greater role to the agencies for their contracting activities, while at the same time increasing controls and improving service levels to vendors. Some specific ways in which the NYS Contracts System will bring about efficiencies for the State and increase transparency are as follows:
To expedite the purchasing process the system will allow State entities to conduct consolidated, on-line searches for a "ready-to-print" list of vendors with approved contracts. Use of the NYS Contracts System will reduce paper shuffling, standardize the process for establishing contracts, and help ensure that the NYS Contract Reporter features "pre-approved contracts" that meet State requirements. Access to the NYS Contracts System for vendor registration will be available to the public at any time. Vendors can view all active and potentially available State contracts. Initially, this system supports three widely used procurement contracts: service, commodity, and technology. All approved contracts will be posted electronically to the State contracts database. There will be no paper copies of approved contracts for these three types of contracts. The NYS Contracts System will give the public much more access to contracts. All contracts emerging from the NYS Contracts System will be published electronically to a centralized repository. All contracts, including contracts with Federal funds, must be approved through the NYS Contracts System. SBO ensures that contracts above the thresholds comply with FAR requirements and that all necessary certifications have been made by the vendor. All contract documents must be electronically attached to the NYS Contracts System. Rather than a pile of related documents, the NYS Contracts System provides one repository for contract documents. Auditors will now have electronic access to contract documents that it would have otherwise taken weeks to gather from numerous individual agencies. The current two-step process will be consolidated into a one-step approval system that will be completely integrated into the State’s accounting system. This integration will permit a much more efficient use of office space and will provide a higher level of transparency because contracts can be audited electronically. In addition, taxation forms which require pre-approval will be available in the NYS Contracts System. This is a big change from the current approvals which essentially result in post-approval because the forms are required to be filed at the time of legal filing.
Difficulties and Remedies
Of course, not all encounters with the NYS Contracts System are problem free. In fact, we find that they are not. Typically, the problems fall into five categories.
Most of the problems we encounter with the NYS Contracts System occur during registration. Many entities struggle with the registration process because the system requires them to obtain a DUNS number. Issues such as wrong entries and transposed digits are common place causing delays in receiving the DUNS number from Dun & Bradstreet.
Some entities have encountered an issue where the name provided to Dun & Bradstreet does not match the name on file with the IRS. In these cases, the entity has to resolve the issue with Dun & Bradstreet by providing additional documentation such as IRS Form 5888 or the Federal Tax Assessment.
After overcoming challenges associated with registering with Dun & Bradstreet entities may be confused by terms like "non-profit", "foreign", and "federal ID". In the event you are working with a foreign not-for-profit, this confusion will seem less of an issue when the entity receives its DUNS number.
After obtaining their DUNS number, entities will log in to the NYS Contracts System for the first time to create an account. Initially, the account is inactive. The system requires that the entity obtain approval from the specific NYS agency they will be doing business with before the account is activated. Sometimes the agency’s approval may take several days.
Once an entity’s account is activated, it is time to contract. The NYS Contracts System contains a number of applications that have been designed and adopted by most NYS agencies. From experience, we know that these applications do not function correctly about 20% of the time. The most common error we see is "No Agencies found" or similar message. The business rules applied by each agency’s application are sometimes too strict or do not integrate well with the NYS Contracts System. As a result , the applications may not recognize prior contract history, or introduce new forms along the way.
Another issue that users encounter is the "Master Registration" page of the NYS Contracts System. This is the page we see most grievances about. Often, when an entity has a contract with multiple NYS agencies, experience has shown us that they are quickly greeted by an unfamiliar "Master Registration" page the next time they log in to the NYS Contracts System.
This page requests information that doesn’t seem to fit into the scope of contracts the entity is pursuing. New applicants for contracts tend to dislike the Master Registration page. For example, the majority of users are not performing a facility and/or equipment rental, therefore the cost and square footage fields are typically met with a blank stare.
Another issue that can arise is with respect to unpaid taxes. NYS requires reporting of unpaid taxes on quarterly filings. However, the quarterly payment program for sales tax has not been updated by Albany to include the 25% or $1000 "uncertain tax liability" that will now appear on every sales tax bill.
Another common problem is that the NYS Contracts System automatically logs users out after 15-30 minutes of inactivity. This isn’t (or media calls it "it") a bug, but sometimes users get lost in the various applications and do not return to the Master Registration page quickly enough.
NYS Contracts System is constantly being improved and updated. Like any new application, there are hiccups that need to be worked out. Experienced users of the NYS Contracts System know that the best practice is to log out and log back in. Sometimes, the account takes some time to sync. Plus, the system may just timeout and fall asleep during a long application. Remember to save your work regularly.
Latest Improvements and Future Plans
Recently, the Office of General Services has made a number of updates to the NYS Contracts System. As previously noted, the system has been down since February 1, 2019. The system went live on March 25, 2019. The current version of the system includes major improvements based on user feedback, particularly in the invoice and purchase order display, as well as increased performance from updates to the infrastructure and overall system stability improvements.
Future enhancements are being developed, with particular focus on further strengthening the NYS Contract System’s searching capabilities and the internal renewal process for contracts. As noted above, there is also a focus on improving the overall performance of the system. There are a number of legislative and policy related NYS developments that may allow the use of the system beyond its current use as a repository of contracts available through New York State’s centralized contracting system.
Making It Work
New users who need to use the NYS Contracts System for the first time can begin by registering for a Personal NYS Accounts (PNA) through NYSORPS. Once you have registered for a PNA and have successfully accessed your account please follow the steps below to register with the NYS Contracts System. Step 1: Navigate to the Contracts Registration Login page using the link above or by copy and pasting this URL into a web browser: contracts.ny.gov. This will take you to the login screen. Step 2: If you have previously registered with the Contracts System, enter your email address and password that create your account. If you do not remember your password, click on "Can’t access your account?" for instructions on resetting your password. After entering your credentials, click on the "Sign In" button. Step 3: If you are a new user, you must provide additional information in order to access the System. This includes providing the last four digits of your Social Security number, along with two security questions. You will also have to accept the terms and conditions for using the site. Click on the "Accept" button and you will be logged into the Contracts System. Step 4: Now that you are registered within the Contracts System, you can apply to become a registered user. All users must complete the form in order to access the System and view the necessary documents. They can also access the "Help" link on the top right corner of the screen to access Frequently Asked Questions (FAQs). This link also contains Contact Us screens for personalized assistance with the System. Because state agencies use the Contracts System to ensure user authorization, all users must be "Cleared Users". This means that no account has been on hold or suspended in CCSS/NYSRPS for over 30 calendar days with its expiration status. The only exception to this is when a user is deactivated due to the user’s termination of State employment and the system was not properly adjusted to reflect the new user status. Please see the FAQs for further details on account status and expiration. After user registration is complete, users are encouraged to become familiar with the Contracts System, including the Contract Registration page and the system as a whole. It is highly recommended that users familiarize themselves with the functionality and navigation of the system by clicking on the various menu tabs and links located on the header of the System pages. The system is set up in a more user-friendly manner than the previous application, and ‘tour’ links are also provided throughout the site with pop-up explanations of various features. The header and footer of every page also provide guidance and support by listing specific Program Areas and Agencies that can be contacted for additional assistance.
In Closing
While this guide to the NYS Contracts System has not been exhaustive, it has at least illuminated the key points any public agency should be cognizant of and informed upon when utilizing the NYS Contracts System during the life of a single contract. A prime consideration when using the NYS Contracts System is for the public agency itself to be as organized and as knowledgeable as possible. This can be an intensive process, but tools are available to allow the public agency to self-educate and to plan for future contracting . The prime takeaway from this article is that the NYS Contracts System is an invaluable tool for the efficient management of contracts with New York State. It allows public agencies to interface with New York State in a comprehensive fashion, and to keep track of multiple active contracts, the status of bids and proposals, pricing, and renewals. More significantly, in the bailout era of the 21st century, it allows the public agency to know what costs are already associated with an existing contract before the award of new contracts, and to allow the public to appreciate that its government does attempt to be good stewards in managing taxpayer funds.