Single Source Procurement: Environmental Quality Review and Health Systems Management

Pursuant to New York State Finance Law § 163.10(b), The New York State Department of Health is presenting the following summary of relevant circumstances, and material and substantial reasons why a competitive procurement was not feasible.

In November 2012, Jewish Home Lifecare (JHL), Manhattan submitted a Certificate of Need application for construction of a new residential care facility at 125 West 97th Street, New York. For purposes of State Environmental Quality Review (SEQR), DOH was the lead because the construction as designed and proposed was compliant with all local zoning regulations. The proposed action would consist of approval by the Commissioner of The New York State Department of Health of a construction application filed pursuant to Article 2802 of the Public Health Law. As such, the Department was the only government entity with discretion in this instance. The proposed project would result in the construction of a facility to replace JHL's 514-bed residential health care facility located at 120 West 106th Street, New York, New York.

Since neither the Bureau of Architectural and Engineering Review (within the Center for Health Facility Planning, Licensure and Finance) nor the Center for Environmental Health had the resources or experience necessary to conduct such a review, the Department sought to utilize the technical services of the Dormitory Authority of the State of New York (DASNY). The technical services included: (1) DASNY attendance at weekly progress meetings from May 13, 2013 to July 15, 2013; (2) review of the environmental assessment statement to be prepared by the applicant; (3) preparation of NYSDOH Lead Agency request letter and distribution list; (4) preparation of positive declaration or negative declaration; (5) notice of public scoping meeting; (6) review of the draft scoping document; (7) monitoring the scoping meeting to ensure all comments are properly considered; (8) review of the final scoping document; (9) if NYSDOH issues a positive declaration, review of a draft environmental impact statement; (10) draft environmental impact statement meetings with the applicant's consultant; (11) preparation of notice of completion of a draft environmental impact statement and notice of a public hearing; (12) monitoring the draft environmental impact statement public hearing; (13) review of a final environmental impact statement; and (14) preparation of a notice of completion of the final environmental impact statement as well as any subsequent Article 78 litigation.

Program initiated procurement of these services through a discretionary contract (T-028793) that proved too low in value and too short in duration (4/01/2013 to 12/31/2013) to cover the entirety of services required for what turned out to be a complex and drawn out process. DASNY was allowed to continue work on the project despite these constraints due to an oversight and lack of programmatic continuity. The amended contract is necessary to pay outstanding invoices.

Please keep in mind that the applicant contracted with AKRF to prepare the Environmental Impact Statement which requires engineer/architectural qualifications. We contracted with DASNY to perform a review of that document which is more of an administrative/regulatory process.

As the services described above have already been performed by DASNY, the Department sought and received a Contract Reporter Exemption request to enter into a single source contract with DASNY. At the time of the initial discretionary procurement, the following single source justification was given.

The Department of Health has a long trusting relationship with the Dormitory Authority of the State of New York (DASNY). In November 2011, DASNY signed a Memorandum of Understanding with the Department of Health (DOH) that allows DASNY to perform architectural drawing reviews associated with the Department's Certificate of Need application process. By virtue of this MOU, health care providers certified under Article 28 of the Public Health Law may enter into a contract to have DASNY review their drawings and provide a recommendation to DOH regarding the conformance of the drawings with applicable codes, rules and regulations. DOH accepts DASNY's recommendation in lieu of the review currently performed by internal DOH staff.

On January 10, 1990, New York State Department of Health (DOH) and the Dormitory Authority of the State of New York mutually covenant and agreed to enter into a Revenue Bonds Financing Agreement.

The Department of Health has a long trusting relationship with the Dormitory Authority of the State of New York (DASNY). In November 2011, DASNY signed a Memorandum of Understanding with the Department of Health (DOH) that allows DASNY to perform architectural drawing reviews associated with the Department's Certificate of Need application process. By virtue of this MOU, health care providers certified under Article 28 of the Public Health Law may enter into a contract to have DASNY review their drawings and provide a recommendation to DOH regarding the conformance of the drawings with applicable codes, rules and regulations. DOH accepts DASNY's recommendation in lieu of the review currently performed by internal DOH staff.

Procurement / Program Name Environmental Quality Review and Health Systems Management
Contractor Name(s) Dormitory Authority State of New York
Contract Period 4/01/2013 – 6/05/2015
Contract Number(s) C030740