New York Codes, Rules and Regulations
Title 2 - DEPARTMENT OF AUDIT AND CONTROL
Chapter IV - Miscellaneous Rules
Part 103 - Rules And Regulations Governing Purchase Of Railroad Materials In Open Market
Section 103.2 - General bidding requirements

(1) Invitations to submit bids must be issued to at least five manufacturers or distributors of products or materials meeting the railroad company's general specification. If less than five invitations are issued, the reason for the limited canvass should be shown on the proposal form.

(2) In recognition of the fact that the railroad companies have adopted the products of certain manufacturers as an inflexible standard for signal and related facilities the State will, in these instances, waive the requirements for competition, providing that the proposed purchase is a reproduction of a product of the same producer, and accept a copy of railroad company's purchase order for such products.

(3) If the proposal of other than the low bidder is recommended for acceptance, a detailed explanation of the preference must be submitted by the Commissioner of Transportation. All tabulations must be accompanied by a copy of the proposal form, invitation and photostatic copy of each bid and/or declination.

(1) Prices must be based on delivery at the nearest point of the railroad on which the project is located and tabulation should show the estimated cost of transportation (for each bidder) at the rate of not to exceed 10 mills per net ton mile from such point to the site of project, or the published tariff rate for that commodity. Specifically, the total for each bid should be adjusted to show total net cost of materials f.o.b. job.

(2) Delivery dates should be so arranged that materials will not pass through railroad stores, as the 15-percent overhead will not be allowed on direct purchases.

(3) Materials purchased for specific State projects shall be consigned to the State of New York, Department of Transportation, in care of the railroad, for the reason that the State will not accept billing for transportation taxes on such purchases.

(4) In issuing invitations to bid on these materials, the railroad companies should not be influenced by the fact that a manufacturer is located on their own or affiliated lines. Invitations must be issued to any reputable producer or distributor of products meeting the railroad company's general specifications.