Piggybacking is the ability for one governmental entity to establish a contract based on another governmental entity’s contract.

General Municipal Law §103(16) establishes the authority of local governments in New York to enter into piggyback contracts.

As a result of a May 21, 2026 ruling by the New York Appellate Division, Third Department, local governments in the 28 counties of the Third Department cannot use a piggyback contract for public works contracts. (Matter of Daniel J. Lynch, Inc., et al. v. Board of Education of the Maine-Endwell Central School District et al. (CV-25-0422))

Whether a local government can piggyback for public works contracts in New York now depends on what county the local government is located in.

The 28 affected counties are: Albany; Broome; Chemung; Chenango; Clinton; Columbia; Cortland; Delaware; Essex; Franklin; Fulton; Greene; Hamilton; Madison; Montgomery; Otsego; Rensselaer; Saratoga; Schenectady; Schoharie; Schuyler; St. Lawrence; Sullivan; Tioga; Tompkins; Ulster; Warren; and, Washington.  

The immediate effect of the decision is to deny the local governments in these 28 counties the efficiency and cost-savings of piggybacking on another government’s contract for public works contracts. The decision may also have a chilling effect on the use of piggyback contracts for public works contracts by local governments located outside of the 28 counties; denying them the same benefits of efficiency and cost savings.  

General Municipal Law §103(16) was scheduled to sunset on June 30, 2026. Senator Jeremy Zellnor and Assemblymember Michaelle Solages drafted legislation (S.10075-A/A.11162-A) to provide a one-year extension of the statute in order to address the public works issue under General Municipal Law §103(16).

On June 26, 2026, Governor Kathy Hochul signed Chapter 147 of the Laws of 2026, extending the ability of local governments to use piggyback contracts under General Municipal Law §103(16) until June 30, 2027.  

The Governor’s signature on the bill, however, doesn’t lift the limitations on the 28 counties imposed by the court’s ruling. As a result, there remains a need, before June 30, 2027, for the Legislature to clarify, not just for the 28 counties bound by the court’s ruling, but all 62 counties in New York, that public works are within the scope of piggybacking under the General Municipal Law §103(16).

The Ostroff Associates procurement team is spearheading an effort to work with the Legislature in this upcoming session to address the public works issue and secure a long-term extension of the piggybacking statute for local governments.

If you are interested in this issue, please reach out to Marc Hiller at mhiller@ostroffassociates.com or to Dan Fuller at dfuller@ostroffassociates.com.