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What's New: Advocacy

SFAA Raises Concern Over New Debarment Process in New York

Tuesday, September 10, 2019  

SFAA Raises Concern Over New Debarment Process in New York

New York Metropolitan Transportation Authority (MTA) adopted a new emergency rule that creates an unfavorable and onerous debarment process for contractors working on MTA projects. The new rule mandates debarment proceedings against contractors that miss their substantial completion date by 10% or submit invalid change orders of more than 10 percent of the contract price. The rule does not provide a robust opportunity for contractors to appeal debarment. SFAA and the American Property Casualty Insurance Association submitted comments in opposition of the emergency rule emphasizing the chilling impact this rule would have on the MTA’s ability to attract qualified bidders for its public works. The rule was originally promulgated on an emergency basis, which has expired, but was recently readopted on an emergency rule, effective until October 17, 2019.

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