Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Smith

DATE TYPED

02/16/04

HB

 

 

SHORT TITLE

Electronic Property Bid Proposals

SB

522/aSJC

 

 

ANALYST

Geisler

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

Unknown

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates:  HB 516

 

SOURCES OF INFORMATION

General Services Department (GSD)

 

SUMMARY

 

Synopsis of SJC Amendments

 

The Senate Judiciary Committee amendments to Senate Bill 522 insert a new subsection G:

 

“G.  The reverse auction process may not be used for the procurement of:

 

  1. construction contracts, construction services, construction maintenance contracts or construction contracts based on unit pricing; or
  2. construction materials to be used in any contract or service specified in Paragraph (1) of this subsection.’”.

 

The amendments also strike Section 9 in its entirety.  Section 13-1-119.1 NMSA 1978 (being Laws 1997, Chapter 171, Section 5, as amended Public Works Project Delivery System—Design and Build Projects Authorized).

 

Synopsis of Original Bill

 

Senate Bill 522 authorizes electronic submission of bids and proposals, and provides for a reverse auction bidding process in the Procurement Code.

 

Significant Issues

 

Allowing electronic submission of bids and proposals would modernize the Procurement Code, and save time and costs for government entities and for vendors.  Reverse auction is a purchasing strategy where bids are entered and visible electronically during a prescribed period.  Bidders can see their competitors’ bids, anonymously, in real time over the internet.  This is a purchasing option used in spend management, which is part of a major initiative during the past year to enhance competition and save money for government entities.

 

FISCAL IMPLICATIONS

 

Allowing electronic receipt of bids and proposals, where appropriate, would save money on paper products and postage for government entities and for vendors doing business with them.

 

 Reverse auction is an increasingly popular method to increase competition and get better prices for goods and non-professional services. 

 

PERFORMANCE IMPLICATIONS 

 

The Purchasing Division is currently participating with a spend management contractor to establish procedures that leverage the state’s purchasing power.

 

AMENDMENTS  

 

GSD suggests a technical correction:  on page 8, line 1, delete the word “highest” and insert in lieu thereof the word “lowest”. 

 

GGG/lg:yr