Regulation Wastes Taxpayers Money

Operational Flexibility

Ballpark Revenue SUNY Farmingdale was offered $250,000 by a vendor, LIPA, to advertise its posters in the Farmingdale baseball field. OSC said that the campus could not accept the offer and had to bid out the ball field’s advertising space in the Contract Reporter. The time involved in drafting the RFT, publishing in the Contract Reported, and entering into a contract with AG/OSC approval made the award of any revenue contract impossibility for that baseball season. Net result: the campus lost $250,000

More Flexibility in the sale and lease of property

Appraisal Review SUNY obtains 2, or even 3, appraisals of any real property it is purchasing. Several years ago OSC began requiring “an appraisal review” of the more expensive parcels (e.g., multi-million dollar purchases like the Russlander Bldg. in Buffalo). Later OSC began requiring appraisal reviews for any property purchase. The appraisal review is a certification that the prior appraisals were correct and valid. OSC told SUNY that OGS could conduct the reviews for us but OGS advises that it would take at least 6 months.

SUNY simply began hiring a 3 rd appraiser to review the other two appraisals. No value was ever added to the transaction by this needless review. The original appraisals had been performed by professional, licensed appraisers, so nothing was being gained by the delay and expense.

Buffalo State College was purchasing a series of small, dilapidated homes on the edge of its parking lot. As each parcel became available, Buff State would buy it, tear down the structure, and extend the lot. The homes were in the $20,000 to $25,000 range, indicating their low value.

Buffalo State purchased one house for only $19,000. The college had paid for 2 appraisals. OSC insisted on the appraisal review. Buff State was forced to spend a substantial sum on a third appraisal. As time was of the essence, the appraisal review was conducted within 3 weeks. However, in the interim and without notifying SUNY, OSC had gone ahead and approved the contract without even waiting for the very review that it had directed SUNY to perform.

The supposed purpose of the extra reviews is to protect the public fiscally. However, in practice, this is never the case. And in the Buff State example, the college was directed by OSC to waste State money on a review which OSC never saw.

Promote efficiency in procurement process

Hewlett Packard – a loss of $500,000
The College of Optometry wanted to convert its medical records to an electronic media and integrate its patient, insurance, and practice files in the same program with the ability to share information. The college asked for a sole source exemption to permit Hewlet Packard (HP) to contract for the new electronic medical records project. JP partnered with a small software company, ISM, to design and implement the desired program to the College at a cost of five hundred thousand ($500,000). OSC would not accept the contract and directed the campus to bid the project. After drafting an RFP (two months of campus employee time), the campus received only one bid that was responsive to the campus RFP. The sole bidder was HP and the cost was one million dollars ($1,000,000). The OSC bidding requirement cost the campus nine months in implementation time and an extra $500,000.