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 a vailable 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 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 Youngberg

ORIGINAL DATE

LAST UPDATED

2-7-06

2/15/06 HB 115/aSCORC

SHORT TITLE

PROCUREMENT CODE PROFESSIONAL

SERVICE LIMITS

SB

ANALYST Hadwiger/Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates,Relates to,Conflicts with, Companion to

Duplicates Appropriation in the General Appropriation Act

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

General Services Department (GSD)

Department of Transportation (DOT)

Department of Corrections (DOC)

SUMMARY

Synopsis of SCORC Amendments

The SCORC amendments to House Bill 115 restore provisions in current law that apply a lower

small purchase exemption under the Procurement Code for surveying services. The small pur-

chase exemption for surveying services is also raised from the current statutory level of $5,000 to

$6,000, rather than including such services in the broader $30,000 exemption proposed in the

original bill.

Synopsis of Original Bill

House Bill 115 would amend the Procurement Code to increase the dollar threshold for contract-

House Bill 115/aSCORC – Page 2

ing for professional services for architectural, engineering, landscape architectural or surveying

services without a formal selection process from $25 thousand to $30 thousand. The bill would

also eliminate the exception, within the small purchase provisions of Section 13-1-125, for the

small purchase of architectural, landscape architectural, engineering or surveying services, and

permit the state and local entities the power to enter into small purchase contracts not to exceed

$30,000.

FISCAL IMPLICATIONS

DFA does not anticipate a significant fiscal impact from this bill, but noted the personnel of the

General Services Department (GSD) Property Control Division (PCD) could spend fewer work-

hours on issuing and managing requests for proposals which would free these personnel to per-

form other tasks.

SIGNIFICANT ISSUES

DFA indicated that, in 2005, the Legislature increased the small purchase limit for most other

professional services to $30 thousand, but architect/engineer contracts were not changed and re-

mained at the $25 thousand small purchase level. This bill would coordinate such contracts to

match all other professional services contracts at one set amount for small purchases.

The Department of Transportation noted that these changes would provide significant help to the

state in its efforts to quickly secure, without the need for time consuming requests for proposals,

small contracts for professional services. The artificial and arbitrary prohibition of PSA small

purchases would be eliminated, thereby achieving greater procurement flexibility in state pro-

curement. Such expedited small purchases of professional services are often necessary in order

to quickly obtain professional review of the work product submitted by other professionals. This

review would serve to protect and safeguard the public, which depends on the accuracy of design

and engineering in public works construction.

PERFORMANCE IMPLICATIONS

DFA anticipated that one benefit of this bill is that the Property Control Division (PCD) of the

General Services Department (GSD) would have fewer requests for proposals to process since

the small purchase limit would be raised. All agencies would benefit in that the small purchase

amount for all professional services would be the same across the board eliminating some confu-

sion.

OTHER SUBSTANTIVE ISSUES

DFA noted that this Bill would remove some confusion in regard to the small purchase limit on

professional services since, currently, the bulk of such services have a $30,000.00 limit for small

purchases while architect/engineer services have a small purchase limit of only $25,000.00. This

change would bring all professional services to the same small purchase threshold.

DH/yr:nt