Minutes of the Annual Meeting of the Power - New York Power ...

April 24, 2007
11. REPORTING REQUIREMENTS AND PROCUREMENT RECORD Section B. change time period
from 120 days to 90 days. The first sentence shall read:
B. Such annual report, as approved by the Trustees, shall be submitted to the Division of
Budget within 90 days after the end of such calendar year and copies shall be distributed to
the Department of Audit and Control, the Department of Economic Development, the
Senate Finance Committee and the Assembly Ways and Means Committee and any other
entity as may be required by law.
ACCOMPLISHMENTS
Major procurement efforts in 2006 included purchase of goods, services and construction work in support of the
Authority's operating projects and headquarters facilities, close-out of the General Work Contract with Slattery
Skanska for the 500 MW Combined Cycle Project, Life Extension and Modernization (“LEM”) Programs at Niagara
and St. Lawrence, and the Energy Services and Technology (“EST”) Programs as mentioned above. Procurement is
continuing efforts to optimize use of the Authority’s credit card system for procurements under $5,000 and the SAP
procurement and materials management system, as well as supporting the requirements of our operating and capital
projects and headquarters operations.
(1) Credit Card Procurement System (“CCPS”)
The Credit Card Procurement System is used to procure goods and services valued under $5,000. At the
end of 2006, the Authority had approximately 150 cardholders in both headquarters and operating facilities.
The number of credit card transactions averaged 860 per month, with an average monthly value of
$368,000, totaling more than $4,400,000 (compared to nearly $4,900,000 in 2005).
(2) Negotiated Savings Program
The Authority’s procurement staff established a goal of achieving 1.5% of non-fuel expenditures in
additional savings by negotiating improved pricing and other commercial terms with recommended low
bidders and resolving back charges and claims with the Authority’s outside vendors and contractors.
(3) Supplier Diversity Program (“SDP”)
In 2006, the Authority continued to optimize the use of M/WBEs to provide goods and services in support
of Authority operations. As noted in Attachment I, in 2006, the Authority awarded over $23,000,000 for
goods and services to M/WBE firms. This included direct and indirect procurements of office supplies,
computer equipment, chemicals, consulting services, temporary engineering personnel and design. In
2006, 11.4% of total reportable procurement expenditures were for M/WBEs, almost doubling the
Authority’s 6% goal. A large percentage of the 2006 M/WBE expenditures continued to be in support of
the 500 MW project which was completed December 2005. Final expenditures for M/WBE subcontracting
in support of the 500 MW project were received in 2006 and exceeded $ 46 Million.
The Authority includes subcontracting goals for M/WBE firms in non-construction procurements of more
than $25,000 and construction procurements of more than $100,000. Staff will continue to pursue other
direct and indirect procurement opportunities wherever possible.
The Authority continues to focus on increasing opportunities for M/WBE firms to participate in investment
banking activities and Treasury bill investments, as well as including an M/WBE firm as a co-manager in
the Tax-Exempt Commercial Paper Program. In 2006, M/WBE investment banking firms purchased and
sold more than $943,874,000 (in principal) of securities transactions for the Authority.
In June 2006, the Authority hosted its 16 th Annual Purchasing Exchange for M/WBEs in White Plains. The
17 th Exchange will take place in June 2007.
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