N.Y. Comp. Codes R. & Regs. tit. 2 § 5.2

Current through Register Vol. 46, No. 53, December 31, 2024

Section 5.2 - Purchase of railroad materials in the open market

The procedure to be followed by the railroad companies in purchasing materials in the open market for use on State sponsored projects involving changes to railroad facilities is as follows:

(a)

(1) Upon the acceptance of a project estimate by the State, the railroad shall determine the extent of required material available in its stores. A stores charge of 15 per cent may be added to the cost of this material after its incorporation in the work.

(2) Substantial quantities of materials ordered under an annual contract for a specific project will be paid for at the cost provided for in such contract, plus necessary costs of transportation and inspection. This material shall be shipped direct to project and the 15 per cent overhead will not be allowed.

(3) All other materials required shall be grouped in a manner which would permit the solicitation of bids for each class of materials. Open market orders will be required for each group of materials having an estimated cost of $2,000 or more.

(4) Open market orders shall be numbered consecutively by projects. Each tabulation shall be tied in with the appropriate estimate item.

(5) All tabulations should show the following certification of the railroad company's purchasing agent or other responsible official:

I hereby certify that the foregoing is a correct tabulation of all bids received on the material listed above. The quotations are based on delivery of the material ____________.

Recommend placing order with

(Low bidder)

Value $________

Terms ________

Purchasing Agent

Dated ________

(b)

(1) Invitations to submit bids must be issued to at least five manufacturers or distributors of products or materials meeting the railroad company's general specification. If less than five invitations are issued, the reason for the limited canvass should be shown on the proposal form. In recognition of the fact that the railroad companies have adopted the products of certain manufacturers as an inflexible standard for signal and related facilities, the State will in these instances, waive the requirement for competition, providing that the proposed purchase is a reproduction of a product of the same producer, and accept a copy of railroad company's purchase order for such products. If the proposal of other than the low bidder is recommended for acceptance, a detailed explanation of the preference must be submitted by the Superintendent of Public Works. All tabulations must be accompanied by a copy of the proposal form, invitation and photostatic copy of each bid and/or declination.

(2) Prices must be based on delivery at the nearest point of the railroad on which the project is located and tabulation should show the estimated cost of transportation (for each bidder) at the rate of not to exceed 10 miles per ton mile from such point to the site of project, or the published tariff rate for that commodity. Specifically, the total for each bid should be adjusted to show total net cost of materials F.O.B. job.

(3) Delivery dates should be so arranged that materials will not pass through railroad stores, as the 15 per cent overhead will not be allowed on direct purchases.

(4) Materials purchased for specific State projects shall be consigned to the State of New York, Department of Public Works--in care of the railroad for the reason that the State will not accept billing for transportation taxes on such purchases. In issuing invitations to bid on these materials the railroad companies should not be influenced by the fact that a manufacturer is located on their own or affiliated lines. Invitations must be issued to any reputable producer or distributor of products meeting the railroad company's general specifications.

(c) In order to secure prompt consideration of the open market orders, the following procedure should be carefully followed:

(1) The railroad company shall submit to the State seven photostatic copies of each bid or declination, proposal form, invitation and certified tabulation.

(2) Distribution should be as follows:

Two copies to Deputy Chief Engineer, State Department of Public Works, Albany, N. Y.

One copy to Public Service Commission, Albany, N. Y. (if project is under jurisdiction of that commission).

Remaining copies to Department of Audit and Control, Albany, N. Y.

(d) The Department of Public Works and/or the Public Service Commission shall review the material so transmitted and forward same to the Department of Audit and Control with appropriate recommendations or comments.

(e) Upon approval of the Department of Audit and Control, the copies shall be distributed as follows:

One copy to each railroad company.

One copy to Deputy Chief Engineer, Department of Public Works, Albany, N. Y.

One copy to Public Service Commission, Albany, N. Y. (if P.S.C. project).

One copy to Director, Bureau of Contracts, Department of Public Works, Albany, N. Y.

One copy retained for files of the Department of Audit and Control.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 5.2