N.Y. Comp. Codes R. & Regs. tit. 9, § 333.5 – General guidelines.

(a) In accordance with provisions of the State Finance Law, prices of services provided by the handicapped shall not exceed in a major or unwarranted amount the prevailing market price for the same or equivalent services. The Commissioner of General Services reserves the right to determine, revise and approve prices based on the consideration of reasonable costs of labor, materials and overhead necessarily incurred by the organizations under efficient methods of procurement, production, performance and administration.
(b) Service contracts which involve the performance of duties which have in the past been performed by employees of the contracting agency or another government agency will not be approved by the Commissioner of General Services if the service can be and/or is provided by employees of the using agency or another government agency to or for the benefit of the using agency.
(c) Service contracts in effect may not be interrupted in order that they be awarded to an organization representing the handicapped, but will be allowed to extend to the termination date specified by the using agency in such contract. Renewal options included in such contracts may also be exercised, and under such circumstances contracts for such services shall not be interrupted to be granted to an organization representing the handicapped.
(d) Approval of prices and services for a service contract will be limited to the specific service, prices, government agency and geographic location stated in the contract, unless specifically extended by the Office of General Services.
(e) When the Commissioner of General Services has determined that a nonprofit agency or commission for the blind or other severely handicapped is offering a suitable service at an acceptable price, and when that service has been approved for extension to other governmental units, the using agency must obtain a release from the nonprofit organization for the blind or other severely handicapped prior to approval of a contract award to another party. The agency making the request for a release must forward such request by certified or registered mail, return receipt requested. However, if no response to a request for release is received from the organization for the blind or handicapped within four weeks of the date of such request for release, this requirement will be waived.
(f) It is the responsibility of the agency or commission representing the handicapped organizations to assure compliance with all relevant provisions of the New York State Labor Law, including but not limited to provisions of that law governing wages and hours.
(g) Service will not be construed to include what the commissioner considers to be construction or the provision of a product nor shall it include printing. Services will also not include activities not normally contracted for by the State or any governmental agency or political subdivision or public benefit corporation thereof.
(h) The Commissioner of General Services reserves the right to request the agency or commission representing the handicapped organizations to prepare an impact statement identifying the anticipated effects of a proposed service contract on private labor forces.
(i) Once the Office of General Services has made a determination of preferred-source status for providing services to a particular agency, the contract may not be assigned by the handicapped organization, or its right, title or interest therein assigned, transferred, conveyed, sublet or disposed of without the previous consent, in writing, by the Office of General Services.
(j) Suitable services shall be procured in accordance with applicable specifications of the State Office of General Services, or with the approval of the Commissioner of General Services, those of such purchasing authority of other State agencies, political subdivision, or public benefit corporation which contract for such services.
(k) The Commissioner of General Services approves the price of suitable services; the commissioner does not award the contract. The contract award will be issued by the agency procuring the service.
(l) The Commissioner of General Services shall make such rules and regulations regarding specifications, quality standards, time of delivery, performance, suitability of service, and other relevant matters as shall be necessary to carry out the purpose of sections 175-a and 175-b of the State Finance Law.
(m) The Office of General Services reserves the right to inspect facilities where any service will be performed, and/or the facilities and records of a workshop requesting preferred treatment. Such inspection may be performed prior to final consideration of an offered service or price approval request, or at any time after such approval has been granted.
(n) Annually, a report of all services actually sold, under the auspices of sections 175-a and 175-b of the State Finance Law, to the State or any governmental agency or political subdivision or public benefit corporation must be submitted to the Office of General Services by the agency designated to represent the nonprofitmaking charitable agencies supplying the service. This report will be due 60 days after the end of the agency or commission fiscal year, and will cover all services sold during that fiscal year. This report must include, but is not limited to, the following for each separate service:
1. (1) type of service;
2. (2) name and address of workshop performing service;
3. (3) name and address of procuring agency;
4. (4) unit price;
5. (5) actual services supplied;
6. (6) total dollar amount; and
7. (7) administrative surcharge clearly identified as a separate cost component.
(o) Each nonprofit agency or commission shall submit an annual report of the administrative expense actually incurred and allocated to services performed during the 12-month period covered in the report. This administrative expense will be that expense incurred in performing responsibilities as the nonprofitmaking charitable agency or commission designated to facilitate order pursuant to sections 175-a and 175-b of the State Finance Law.
(p) Once designation as preferred source has been made, the nonprofit agency or commission representing the handicapped will be responsible for supplying the Office of General Services with a copy of the contract award. If no contract is awarded, the Office of General Services must be advised.
(q) The Commissioner of General Services reserves the right, during the contract period, to revoke the designation as preferred source if changes in service or price occur without prior written approval of the Office of General Services.
(r) The Commissioner of General Services reserves the right to terminate a designation as preferred source whenever the service is no longer determined suitable; or is offered at a price determined to exceed, unreasonably, the prevailing market price for the same or equivalent services; or if, upon review, the commissioner or his representative determines that service is being performed in an unsatisfactory manner. Such notice of termination shall be given to affected agencies 30 days prior to effective date of termination.
(s) A service may not be considered as suitable if the work is to be performed in an area outside the immediate geographic area of the using agency.
(t) Items that are, or have been, procured through contracts awarded by the Division of Standards and Purchase normally will be considered to be commodities.
(u) The handicapped organization is required to submit, to the agency or commission representing it, the supporting data used to prepare its cost sheets for performing a particular service. This information should be kept on file for audit or review by OGS and/or the State Comptroller's office.
(v) The nonprofit agency or commission, designated by either the Commissioner of Social Services or the Commissioner of Education, must certify that the actual composition of the work force on each individual service contract meets the same standards used in certifying the number or percentage of handicapped individuals comprising the organization.