N.Y. Pub. Auth. Law § 1779
Where the expense of the construction of the new hospital project or any part thereof, or an addition, betterment or extension of the facilities of the existing district hospital, or the purchase of materials, supplies and equipment shall involve an expense exceeding two thousand dollars, the authority shall advertise for bids and shall award the contract to the lowest responsible bidder fully complying with the plans and specifications. The advertisement shall be published once, not less than two weeks prior to the date fixed for the opening of bids, in the official newspapers of the city of Salamanca. The authority may make rules and regulations for the submission of bids and award of contract thereon and may provide in such rules and regulations that no performance bond or undertaking need be furnished by the contractor for the purchase of materials, supplies and equipment in an amount not exceeding one thousand dollars. No contract in excess of one thousand dollars shall be entered into for the construction of a project or a part thereof or for an addition, betterment, or extension to the facilities, or for the purchase of materials, supplies and equipment unless the contractor shall give an undertaking, with a sufficient surety or sureties approved by the authority and in the amount fixed by the authority for the faithful performance of the contract. As to a contract entered into for the construction, the undertaking shall provide, among other things, that the person or corporation entering in the contract will pay for all materials furnished and services rendered in the performance of the contract and that a person or corporation furnishing the materials or rendering the services may maintain an action to recover for the same against the obligor in the undertaking as though the person or corporation were named therein, provided the action is brought within one year after the time the cause of action accrued. Nothing in this section shall be construed to limit the power of the authority to construct a project or a part thereof, or an addition, betterment of extension to the facilities directly by the officers, agents and employees of the authority.
N.Y. Pub. Auth. Law § 1779