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SPONSOR: |
Carraro |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Competitive Proposal Contracting |
SB |
736 |
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ANALYST: |
Geisler |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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Indeterminate |
Recurring |
General
Fund/OSF/ Federal |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to HB 575
General Services Department (GSD)
State Department of Education (SDE)
SUMMARY
Synopsis
of Bill
SB 736 amends a section of the procurement code to expand the applicability of competitive proposal contracting for construction associated with assured environmental performance service projects (heating & cooling systems). SB 736 applies to those school districts having fewer than 15,000 students.
Significant
Issues
The State Department of Education provided the
following comments:
1.
The provisions of this bill exclude the
2.
By allowing for the submission of sealed
proposals rather than sealed bids, a fundamental change in construction and
maintenance procurement is intended. As
noted in Section 13-1-115 NMSA 1978, offerors submitting proposals may be
afforded the opportunity for discussion and revision of proposals. Revisions may be permitted after submissions
of proposals and prior to award for the purpose of obtaining the best and final
offers. Negotiations may be conducted
with responsible offerors who submit proposals found to be reasonably likely to
be selected for the award. Bids are
generally more finite in that a specific dollar amount is indicated. There are instances where this amount is
changed, but generally this occurs in response to construction issues that
arise after the fact.
3.
Currently Section 13-1-111 NMSA 1978
allows for these actions only after a determination is made by the state
purchasing agent or a central office purchasing office that competitive sealed
bids are not practical or in the best interests of the affected agency. SB 736 directs that competitive proposals be
used in all instances where assured environmental performance service projects
are involved, including maintenance activities.
4.
As defined in SB 736, “assured
environmental performance service projects” means design, construction, control
and warranty of heating and cooling systems.
However, this bill includes additional systems that may or may not be
related to heating and cooling, due to the language being too broad in scope. The language should be more specific in the associated
systems relating to the heating and cooling systems. The provisions of this bill may encompass
added work that is unintended.
FISCAL IMPLICATIONS
SB 736 may change the overall cost of construction or maintenance projects. The number of projects that may be affected by this legislation is considerable given the large number of school projects that are undertaken each year.
RELATIONSHIP
SB 736 relates to HB 573 in that both bills change Section 13-1-111 NMSA 1978 to provide for sealed competitive proposals rather than sealed bids for various types of work in school districts.
HB 573 allows the use
of competitive, sealed proposals for contracts for construction and facility
maintenance, service and repairs.
TECHNICAL ISSUES
GSD proposes a technical correction to the bill:
On page 2, lines 11
and 12, delete “for school districts having fewer than fifteen thousand students”. On page 2, line 19, after the word “systems”
insert “for school districts having fewer than fifteen thousand students”.
GG/njw