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

SPONSOR Silva

ORIGINAL DATE

LAST UPDATED

2/12/07

HB 1014

SHORT TITLE PROFESSIONAL SERVICES MONETARY LIMITS SB

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

General Services Department (GSD)

SUMMARY

Synopsis of Bill

HB 1014 would raise the small purchase limit for public works projects from $25.0 to $30.0.

FISCAL IMPLICATIONS

DFA reports that there would be some beneficial fiscal impact in raising the limit in that agencies

(generally Property Control Division of the General Services Department) would not have to

perform a request for proposals until a contract reaches the $30.0 limit as opposed to the current

$25.0 limit. Presumably, this would mean fewer RFPs which are time and labor consuming for

agencies.

SIGNIFICANT ISSUES

HB 1014 redefines “local public works project" and “state public works project" from a project

that uses architectural or engineering services costing $25.0 or more to a project costing $30.0 or

more. Surveying services requiring formal competition are raised from $5.0 to $30.0 and

services of landscape architects are eliminated from these definitions.

House Bill 1014 – Page

2

HB 1014 would close a gap in the procurement code by setting a limit of $30.0 for all small

purchases for professional services contracts and end the exception that had been left in law for

so-called public works projects. In the past, the small purchase limit for most professional

services was $20.0 and these public works projects were $25.0. When the limit for most PSAs

was raised from $20.0 to $30.0 these public works type contracts were left out, presumably as an

oversight. This bill would correct that and make all PSAs the same in terms of small purchase

limits.

CONFLICT

SB 555 which raises the limit to $50.0

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