New York State Industries for the Disabled (NYSID)
NYSID, or New York State Industries for the Disabled, is a preferred source program that allows New York State agencies to purchase goods and services from nonprofit organizations that employ individuals with disabilities without competitive bidding. It operates under New York's Preferred Source framework and prioritizes social impact procurement [citation:1][citation:2].
What Is NYSID?
NYSID, or New York State Industries for the Disabled, is a preferred source program that allows New York State agencies to purchase goods and services from nonprofit organizations that employ individuals with disabilities without competitive bidding. It operates under New York's Preferred Source framework and prioritizes social impact procurement [citation:1][citation:5].
Established in 1975 and based in Albany, NYSID is a not-for-profit membership organization that partners with a network of community rehabilitation agencies to create job opportunities for people with disabilities in various industries [citation:5][citation:7]. Its mission is to promote independence, self-sufficiency, and integration of individuals with disabilities into the workforce [citation:7].
Key Characteristics
Preferred source designation under New York State Finance Law Section 162 [citation:1][citation:2]
Applies to New York State agencies and certain public entities, including local governments and SUNY schools [citation:3][citation:8]
Supports employment for individuals with disabilities through a network of member agencies [citation:5]
Allows non-competitive procurement when items or services are on the approved list, exempt from statutory competitive bidding requirements [citation:6][citation:8]
Works through qualified nonprofit community rehabilitation programs across the state [citation:5][citation:7]
How It Works in Government Contracting
Where It Appears in the Procurement Lifecycle
NYSID applies at the sourcing and acquisition stage. Before issuing a solicitation, agencies must check whether required goods or services are available from a preferred source provider [citation:1][citation:2].
Who Uses It
New York State agencies, public authorities, local governments, school districts, and SUNY schools are required to use NYSID for approved products and services that meet form, function, and utility requirements [citation:2][citation:3][citation:8].
Why It Matters
If a product or service is available through NYSID, agencies are required to purchase it from that source before considering competitive procurement. This mandate supports social and economic goals by creating stable employment for individuals with disabilities [citation:3][citation:8].
Practical Application
For example, if an agency needs document management services, janitorial support, custodial supplies, copy paper, or mail fulfillment, it must first verify whether those services are available through NYSID. If listed, the agency procures directly from the preferred source provider, with prices approved by the New York State Office of General Services [citation:3][citation:5].
Regulatory Framework
NYSID operates under New York State Finance Law Section 162, which establishes the Preferred Source Program and requires agencies to afford first priority to preferred source suppliers when their products or services meet form, function, and utility requirements [citation:1][citation:2].
New York State Finance Law Section 162 [citation:1][citation:2]
New York State Procurement Guidelines
Office of General Services (OGS) policies and approved price lists [citation:2][citation:5]
State agency procurement procedures and guidelines issued by the State Procurement Council [citation:2]
The law requires agencies to prioritize preferred sources in the following order: Correctional Industries (Corcraft), approved nonprofit agencies for the blind, and then equal priority to agencies for the severely disabled (including NYSID), qualified programs for mentally ill persons, and qualified veterans' workshops [citation:8].
Why It Matters for Contractors
Business Implications: Certain contracts may never be competitively bid if covered under the preferred source list. This creates a stable revenue stream for NYSID and its member agencies, with annual revenues exceeding $250 million [citation:7].
Compliance Impact: Contractors must understand when opportunities are unavailable due to preferred source requirements. Prime contractors on state contracts may need to coordinate with NYSID when their scope overlaps with preferred source offerings.
Strategic Importance: Private sector businesses can explore partnerships, subcontracting arrangements, or supply relationships with NYSID member agencies. NYSID actively partners with private sector businesses, including Minority and Woman-Owned Business Enterprises [citation:5].
Risk Considerations: Failure to recognize preferred source rules may result in pursuing ineligible opportunities or misjudging procurement strategies. Agencies that fail to check preferred source availability may be out of compliance with State Finance Law.
Common Misconceptions
NYSID is a government agency.
NYSID is a not-for-profit membership organization, not a state agency. It coordinates nonprofit providers participating in the Preferred Source Program [citation:5][citation:7].
Preferred source contracts are more expensive.
Pricing is reviewed and approved by the New York State Office of General Services to ensure fairness and value to the state [citation:5].
Private companies cannot work with NYSID providers.
Private sector partnerships and subcontracting arrangements are possible. NYSID member agencies partner with private sector businesses, including MWBEs and veterans' support programs [citation:5].
Frequently Asked Questions
What types of goods and services are available through NYSID?
Common offerings include janitorial services, mail fulfillment, digital accessibility testing, data imaging, document destruction, custodial supplies, copy paper, air purifiers, customized apparel, health care items, office supplies, and furniture [citation:3][citation:6].
Are agencies required to use NYSID?
Yes. If the needed goods or services are on the approved preferred source list and meet form, function, and utility requirements, agencies must purchase from that source before using competitive procurement [citation:1][citation:2][citation:8].
Does NYSID eliminate all competition?
Only for listed goods and services. Items not covered by the preferred source list follow standard procurement methods. Agencies must check the preferred source offerings list published by OGS before proceeding with any procurement [citation:2].
Can local governments use NYSID?
Yes. Counties, municipalities, school districts, and other public entities may access preferred source contracts depending on eligibility rules. The New York State Association of Counties (NYSAC) partners with NYSID as an Excelsior Partner [citation:3].
Related Government Contracting Topics
Preferred Source Program: A New York State program that designates certain suppliers, including NYSID, for mandatory procurement consideration before competitive bidding [citation:1][citation:8].
Sole Source Procurement: A procurement method where competition is waived for a single supplier, similar to preferred source purchasing but governed by different legal requirements.
New York State Finance Law Section 162: The statutory foundation for the Preferred Source Program, establishing priority purchasing requirements for designated suppliers [citation:1][citation:2].
Office of General Services (OGS) Procurement: The state agency that oversees procurement policies and maintains the approved preferred source offerings list [citation:2].
Minority and Women-Owned Business Enterprise (MWBE) Program: Another New York State socioeconomic procurement program that NYSID partners with to create additional opportunities [citation:5].
Corcraft: The Correctional Industries program, another preferred source with equal or higher priority than NYSID under State Finance Law [citation:1][citation:8].
NYSID is a nonprofit membership organization and a designated preferred source under New York State Finance Law Section 162 [citation:5][citation:8]. For contractors and public agencies, it represents a mandatory procurement path for a wide range of goods and services, creating employment for New Yorkers with disabilities while streamlining acquisitions without competitive bidding [citation:3].