New York Piggybacking Provision Extension Advances to Governor’s Desk
New York’s General Municipal Law § 103(16) currently permits various New York State agencies, municipalities, political subdivisions, and districts to engage in “piggybacking” as an alternative and more efficient method of procurement compared to the traditional public bidding process. When the State Legislature initially passed the amendment to the General Municipal Law to permit piggybacking, the change was not a permanent one. The Legislature included a sunset provision to repeal the piggybacking clauses after being in effect for five years. Since then, municipalities, school districts, and other government agencies have acknowledged the positive impact that piggybacking has had on project efficiency and cost control, and the State Legislature to this point has worked to keep the law in effect. The initial repeal date has been amended several times, and the current extension is set to expire on June 30, 2026. Legislative Bills S.10075-A/A.11162-A aim to extend the piggybacking provision of the General Municipal Law for an additional year, to June 30, 2027. Among other things, the bill summary recites that “Piggybacking has been proven to reduce the administrative costs and burdens for localities and the costs related to goods and services; resulting in savings to the governmental entities that utilize cooperative purchasing.” The Bill recently passed both chambers of the Legislature and currently awaits Governor Hochul’s pen.
As noted in an alert issued two weeks ago, the scope of the piggybacking provision was recently limited by judicial interpretation in the Third Department’s Maine-Endwell decision. The Office of the State Comptroller has already issued a May 2026 update to its guidance memorandum to state agencies on piggybacking contracts. The memo now acknowledges that “a recent appellate court decision has held that the use of the piggybacking exception set forth in GML § 103(16) is not available for public works, public works contracts, and public works projects.”
Legislators in the Assembly had, months ago, already introduced proposed Bill A.09344, which seeks to clarify the statute and authorize piggybacking on public works projects. Another bill had also been introduced in the Senate S.10326, which proposed to amend the General Municipal Law to add new Section 109-e, which would authorize “political subdivisions” to utilize cooperative purchasing piggybacking on public works projects, provided the contract to be piggybacked had been competitively bid out by another “political subdivision” in New York or another state. The bill also includes local advertising requirements. Notably, the proposed Senate bill only references political subdivisions in its scope and application. Both the Assembly and Senate bills remain in committee in their respective chambers, and it remains to be seen how much traction they will have in the future, assuming the sunset date is again extended.
Our Construction and Education Practices are closely monitoring the rapidly changing developments surrounding this matter. For more information or questions about piggybacking or public bidding more generally, contact Jason E. Markel (716.848.1395) or Jeffrey A. Swiatek (716.848.1449), or other members of the firm’s Construction and Education Practices.
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