HOUSE BILL 217

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Randal S. Crowder and Bob Wooley and George Dodge, Jr.

AN ACT

RELATING TO PROCUREMENT; INCREASING THE CAP FOR RESIDENT VETERAN CONTRACTORS TO QUALIFY FOR A BIDDING PREFERENCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 13-4-2 NMSA 1978 (being Laws 1984, Chapter 66, Section 2, as amended) is amended to read:

     "13-4-2. APPLICATION OF PREFERENCE.--

          A. For the purposes of this section:

                (1) "formal bid process" means a competitive sealed bid process;

                (2) "formal request for proposals process" means a competitive sealed proposal process, including a competitive sealed qualifications-based proposal process;

                (3) "public body" means a department, commission, council, board, committee, institution, legislative body, agency, government corporation, educational institution or official of the executive, legislative or judicial branch of the government of the state or a political subdivision of the state and the agencies, instrumentalities and institutions thereof, including two-year post-secondary educational institutions, school districts, local school boards and all municipalities, including home-rule municipalities;

                (4) "public works contract" means a contract for construction, construction management, architectural, landscape architectural, engineering, surveying or interior design services;

                (5) "resident contractor" means a person that has a valid resident contractor certificate issued by the taxation and revenue department pursuant to Section 13-1-22 NMSA 1978 but does not include a resident veteran contractor; and

                (6) "resident veteran contractor" means a person that has a valid resident veteran contractor certificate issued by the taxation and revenue department pursuant to Section 13-1-22 NMSA 1978.

          B. For the purpose of awarding a public works contract using a formal bid process, a public body shall deem a bid submitted by a:

                (1) resident contractor to be five percent lower than the bid actually submitted; or

                (2) resident veteran contractor with annual gross revenues of up to [three million dollars ($3,000,000)] ten million dollars ($10,000,000) in the preceding tax year to be ten percent lower than the bid actually submitted.

          C. When a public body awards a contract using a formal request for proposals process, not including contracts awarded on a point-based system, the public body shall award an additional:

                (1) five percent of the total weight of all the factors used in evaluating the proposals to a resident contractor; or

                (2) ten percent of the total weight of all the factors used in evaluating the proposals to a resident veteran contractor that has annual gross revenues of up to [three million dollars ($3,000,000)] ten million dollars ($10,000,000) in the preceding tax year.

          D. When a public body makes a purchase using a formal request for proposals process, and the contract is awarded based on a point-based system, the public body shall award an additional of the equivalent of:

                (1) five percent of the total possible points to a resident contractor; or

                (2) ten percent of the total possible points to a resident veteran contractor that has annual gross revenues of up to [three million dollars ($3,000,000)] ten million dollars ($10,000,000) in the preceding tax year.

          E. When a joint bid or joint proposal is submitted by a combination of resident veteran, resident or nonresident contractors, the preference provided pursuant to Subsection B, C or D of this section shall be calculated in proportion to the percentage of the contract, based on the dollar amount of the goods or services provided under the contract, that will be performed by each contractor as specified in the joint bid or joint proposal.

          F. A resident veteran contractor shall not benefit from the preference pursuant to this section for more than ten consecutive years. A person that is an owner of a business that is a resident veteran contractor shall not benefit from the preference pursuant to this section for more than ten consecutive years. A person shall not benefit from the provisions of this section based on more than one business concurrently.

          G. A public body shall not award a contractor both a resident contractor preference and a resident veteran contractor preference.

          H. The procedures provided in Sections 13-1-172 through 13-1-183 NMSA 1978 or in an applicable purchasing ordinance apply to a protest to a public body concerning the awarding of a contract in violation of this section."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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