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Connecticut House Bill HB05504

Connecticut 2019 Regular Session

Connecticut House Bill HB05504 Compare Versions

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77 General Assembly Substitute Bill No. 5504
88 January Session, 2019
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1010
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1212 AN ACT CONCERNING TH E NET ECONOMIC VALUE OF
1313 CONTRACTS.
1414 Be it enacted by the Senate and House of Representatives in General
1515 Assembly convened:
1616
1717 Section 1. Section 4e-1 of the general statutes is repealed and the 1
1818 following is substituted in lieu thereof (Effective from passage): 2
1919 For the purposes of sections 4e-1 to 4e-47, inclusive, and section 2 of 3
2020 this act: 4
2121 (1) "Best value selection" means a contract selection process in which 5
2222 the award of a contract is based on a combination of quality, timeliness 6
2323 and cost factors; 7
2424 (2) "Bid" means an offer, submitted in response to an invitation to 8
2525 bid, to furnish supplies, materials, equipment, construction or 9
2626 contractual services to a state contracting agency under prescribed 10
2727 conditions at a stated price; 11
2828 (3) "Bidder" means a business submitting a bid in response to an 12
2929 invitation to bid by a state contracting agency; 13
3030 (4) "Business" means any individual or sole proprietorship, 14
3131 partnership, firm, corporation, trust, limited liability company, limited 15
3232 liability partnership, joint stock company, joint venture, association or 16
3333 other legal entity through which business for profit or not-for-profit is 17
3434 conducted; 18 Substitute Bill No. 5504
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4141 (5) "Competitive bidding" means the submission of prices by a 19
4242 business competing for a contract to provide supplies, materials, 20
4343 equipment or contractual services to a state contracting agency, under 21
4444 a procedure in which the contracting authority does not negotiate 22
4545 prices, as set forth in statutes and regulations concerning procurement; 23
4646 (6) "Consultant" means (A) any architect, professional engineer, 24
4747 landscape architect, land surveyor, accountant, interior designer, 25
4848 environmental professional or construction administrator, who is 26
4949 registered or licensed to practice such person's profession in 27
5050 accordance with the applicable provisions of the general statutes, (B) 28
5151 any planner or any environmental, management or financial specialist, 29
5252 or (C) any person who performs professional work in areas including, 30
5353 but not limited to, educational services, medical services, information 31
5454 technology and real estate appraisal; 32
5555 (7) "Consultant services" means those professional services rendered 33
5656 by a consultant and any incidental services that a consultant and those 34
5757 in the consultant's employ are authorized to perform; 35
5858 (8) "Contract" or "state contract" means an agreement or a 36
5959 combination or series of agreements between a state contracting 37
6060 agency or quasi-public agency and a business for: 38
6161 (A) A project for the construction, reconstruction, alteration, 39
6262 remodeling, repair or demolition of any public building, public work, 40
6363 mass transit, rail station, parking garage, rail track or airport; 41
6464 (B) Services, including, but not limited to, consultant and 42
6565 professional services; 43
6666 (C) The acquisition or disposition of personal property; 44
6767 (D) The provision of goods and services, including, but not limited 45
6868 to, the use of purchase of services contracts and personal service 46
6969 agreements; 47 Substitute Bill No. 5504
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7676 (E) The provision of information technology, state agency 48
7777 information system or telecommunication system facilities, equipment 49
7878 or services; 50
7979 (F) A lease; or 51
8080 (G) A licensing agreement; 52
8181 "Contract" or "state contract" does not include a contract between a 53
8282 state agency or a quasi-public agency and a political subdivision of the 54
8383 state; 55
8484 (9) "Term contract" means the agreement reached when the state 56
8585 accepts a bid or proposal to furnish supplies, materials, equipment or 57
8686 contractual services at a stated price for a specific period of time in 58
8787 response to an invitation to bid; 59
8888 (10) "Contract risk assessment" means (A) the identification and 60
8989 evaluation of loss exposures and risks, including, but not limited to, 61
9090 business and legal risks associated with the contracting process and 62
9191 the contracted goods and services, and (B) the identification, 63
9292 evaluation and implementation of measures available to minimize 64
9393 potential loss exposures and risks; 65
9494 (11) "Contractor" means any business that is awarded, or is a 66
9595 subcontractor under, a contract or an amendment to a contract with a 67
9696 state contracting agency under statutes and regulations concerning 68
9797 procurement, including, but not limited to, a small contractor, minority 69
9898 business enterprise, an individual with a disability, as defined in 70
9999 section 4a-60, or an organization providing products and services by 71
100100 persons with disabilities; 72
101101 (12) "Contractual services" means the furnishing of labor by a 73
102102 contractor, not involving the delivery of a specific end product other 74
103103 than reports, which are merely incidental to the required performance 75
104104 and includes any and all laundry and cleaning service, pest control 76
105105 service, janitorial service, security service, the rental and repair, or 77 Substitute Bill No. 5504
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112112 maintenance, of equipment, machinery and other state -owned 78
113113 personal property, advertising and photostating, mimeographing, 79
114114 human services and other service arrangements where the services are 80
115115 provided by persons other than state employees. "Contractual services" 81
116116 includes the design, development and implementation of technology, 82
117117 communications or telecommunications systems or the infrastructure 83
118118 pertaining thereto, including hardware and software and services for 84
119119 which a contractor is conferred a benefit by the state, whether or not 85
120120 compensated by the state. "Contractual services" does not include 86
121121 employment agreements or collective bargaining agreements; 87
122122 (13) "Data" means recorded information, regardless of form or 88
123123 characteristic; 89
124124 (14) "Vote of two-thirds of the members of the board present and 90
125125 voting" means a vote by the State Contracting Standards Board that is 91
126126 agreed upon by two-thirds of the members of the State Contracting 92
127127 Standards Board present and voting for a particular purpose and that 93
128128 includes the vote of one member of the board appointed by a 94
129129 legislative leader; 95
130130 (15) "Electronic" means electrical, digital, magnetic, optical, 96
131131 electromagnetic, or any other similar technology; 97
132132 (16) "Emergency procurement" means procurement by a state 98
133133 contracting agency, quasi-public agency, as defined in section 1-120, 99
134134 judicial department or constituent unit of higher education that is 100
135135 made necessary by a sudden, unexpected occurrence that poses a clear 101
136136 and imminent danger to public safety or requires immediate action to 102
137137 prevent or mitigate the loss or impairment of life, health, property or 103
138138 essential public services or in response to a court order, settlement 104
139139 agreement or other similar legal judgment; 105
140140 (17) "Equipment" means personal property of a durable nature that 106
141141 retains its identity throughout its useful life; 107
142142 (18) "Materials" means items required to perform a function or used 108 Substitute Bill No. 5504
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149149 in a manufacturing process, particularly those incorporated into an 109
150150 end product or consumed in its manufacture; 110
151151 (19) "Nonprofit agency" means any organization that is not a for-111
152152 profit business under Section 501(c)(3) of the Internal Revenue Code of 112
153153 1986, or any subsequent corresponding internal revenue code of the 113
154154 United States, as from time to time amended, makes no distribution to 114
155155 its members, directors or officers and provides services contracted for 115
156156 by (A) the state, or (B) a nonstate entity; 116
157157 (20) "Professional services" means any type of service to the public 117
158158 that requires that members of a profession rendering such service 118
159159 obtain a license or other legal authorization as a condition precedent to 119
160160 the rendition thereof, including, but not limited to, the professional 120
161161 services of architects, professional engineers, or jointly by architects 121
162162 and professional engineers, landscape architects, certified public 122
163163 accountants and public accountants, land surveyors, attorneys-at-law, 123
164164 psychologists, licensed marital and family therapists, licensed 124
165165 professional counselors and licensed clinical social workers as well as 125
166166 such other professional services described in section 33-182a; 126
167167 (21) "Privatization contract" means an agreement or series of 127
168168 agreements between a state contracting agency and a person or entity 128
169169 in which such person or entity agrees to provide services that are 129
170170 substantially similar to and in lieu of services provided, in whole or in 130
171171 part, by state employees, other than contracts with a nonprofit agency, 131
172172 which are in effect as of January 1, 2009, and which through a renewal, 132
173173 modification, extension or rebidding of contracts continue to be 133
174174 provided by a nonprofit agency; 134
175175 (22) "Procurement" means contracting for, buying, purchasing, 135
176176 renting, leasing or otherwise acquiring or disposing of, any supplies, 136
177177 services, including but not limited to, contracts for purchase of services 137
178178 and personal service agreements, interest in real property, or 138
179179 construction, and includes all government functions that relate to such 139
180180 activities, including best value selection and qualification based 140 Substitute Bill No. 5504
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187187 selection; 141
188188 (23) "Proposer" means a business submitting a proposal to a state 142
189189 contracting agency in response to a request for proposals or other 143
190190 competitive sealed proposal; 144
191191 (24) "Public record" means a public record, as defined in section 1-145
192192 200; 146
193193 (25) "Qualification based selection" means a contract selection 147
194194 process in which the award of a contract is primarily based on an 148
195195 assessment of contractor qualifications and on the negotiation of a fair 149
196196 and reasonable price; 150
197197 (26) "Regulation" means regulation, as defined in section 4-166; 151
198198 (27) "Request for proposals" means all documents, whether attached 152
199199 or incorporated by reference, utilized for soliciting proposals; 153
200200 (28) "State contracting agency" means any executive branch agency, 154
201201 board, commission, department, office, institution or council. "State 155
202202 contracting agency" does not include the judicial branch, the legislative 156
203203 branch, the offices of the Secretary of the State, the State Comptroller, 157
204204 the Attorney General, the State Treasurer, with respect to their 158
205205 constitutional functions, any state agency with respect to contracts 159
206206 specific to the constitutional and statutory functions of the office of the 160
207207 State Treasurer. For the purposes of section 4e-16 and section 4 of this 161
208208 act, "state contracting agency" includes any constituent unit of the state 162
209209 system of higher education and for the purposes of section 4e-19, "state 163
210210 contracting agency" includes the State Education Resource Center, 164
211211 established under section 10-4q; 165
212212 (29) "Subcontractor" means a subcontractor of a contractor for work 166
213213 under a contract or an amendment to a contract; 167
214214 (30) "Supplies" means any and all articles of personal property, 168
215215 including, but not limited to, equipment, materials, printing, insurance 169 Substitute Bill No. 5504
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222222 and leases of real property, excluding land or a permanent interest in 170
223223 land furnished to or used by any state agency; 171
224224 (31) "Infrastructure facility" means a building, structure or network 172
225225 of buildings, structures, pipes, controls and equipment that provide 173
226226 transportation, utilities, public education or public safety services. 174
227227 Infrastructure facility includes government office buildings, public 175
228228 schools, jails, water treatment plants, distribution systems and 176
229229 pumping stations, wastewater treatment plants, collections systems 177
230230 and pumping stations, solid waste disposal plants, incinerators, 178
231231 landfills, and related facilities, public roads and streets, highways, 179
232232 public parking facilities, public transportation systems, terminals and 180
233233 rolling stock, rail, air and water port structures, terminals and 181
234234 equipment; and 182
235235 (32) "State employee" means state employee, as defined in section 5-183
236236 154 and, for purposes of section 4e-16, state employee includes an 184
237237 employee of any state contracting agency. 185
238238 Sec. 2. (NEW) (Effective from passage) (a) The Commissioner of 186
239239 Administrative Services shall determine a methodology for evaluating 187
240240 the potential state revenue from awarding a contract to a business in 188
241241 this state or a business that will hire employees in this state, including 189
242242 the estimated effect on the state economy, as one of the criteria used to 190
243243 evaluate the bids received for state contracts. Such methodology may 191
244244 include, but need not be limited to, consideration of potential revenue 192
245245 to the state from the taxes imposed pursuant to chapters 219 and 229 of 193
246246 the general statutes. After such methodology is adopted under 194
247247 subsection (b) of this section, the methodology shall be used by the 195
248248 commissioner and any other state contracting agency, other than the 196
249249 Department of Transportation, as part of their procurement processes 197
250250 for any contract entered into, amended or renewed on or after such 198
251251 adoption. 199
252252 (b) The Commissioner of Administrative Services shall, by 200
253253 regulations adopted in accordance with the provisions of chapter 54 of 201 Substitute Bill No. 5504
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260260 the general statutes, adopt the methodology for evaluating bids 202
261261 received for contracts described in subsection (a) of this section. Not 203
262262 later than January 1, 2020, the commissioner shall post notice of intent 204
263263 to adopt such regulations on the Department of Administrative 205
264264 Services' Internet web site and the eRegulations System. 206
265265 Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 207
266266 "business", "contract" and "procurement" have the same meanings as 208
267267 provided in section 4e-1 of the general statutes, as amended by this act. 209
268268 The Commissioner of Transportation shall determine a methodology 210
269269 for evaluating the potential state revenue from awarding a contract to 211
270270 a business in this state or a business that will hire employees in this 212
271271 state, including the estimated effect on the state economy, as one of the 213
272272 criteria used to evaluate the bids received for contracts. Such 214
273273 methodology may include, but need not be limited to, consideration of 215
274274 potential revenue to the state from the taxes imposed pursuant to 216
275275 chapters 219 and 229 of the general statutes. After such methodology is 217
276276 adopted under subsection (b) of this section, the methodology shall be 218
277277 used by the Department of Transportation as part of its procurement 219
278278 processes for any contract entered into, amended or renewed on or 220
279279 after such adoption. 221
280280 (b) The Commissioner of Transportation shall, by regulations 222
281281 adopted in accordance with the provisions of chapter 54 of the general 223
282282 statutes, adopt the methodology for evaluating bids received for 224
283283 contracts described in subsection (a) of this section. Not later than 225
284284 January 1, 2020, the commissioner shall post notice of intent to adopt 226
285285 such regulations on the Department of Transportation's Internet web 227
286286 site and the eRegulations System. 228
287287 Sec. 4. (NEW) (Effective from passage) (a) Not later than January 1, 229
288288 2020, the Board of Trustees of The University of Connecticut shall 230
289289 adopt, and update as necessary, policies relating to the process for 231
290290 entering into or amending a contract, as defined in section 4e-1 of the 232
291291 general statutes, as amended by this act, and determine a methodology 233
292292 for evaluating the potential state revenue from awarding a contract to 234 Substitute Bill No. 5504
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299299 a business in this state or a business that will hire employees in this 235
300300 state, including the estimated effect on the state economy, as one of the 236
301301 criteria used to evaluate the bids received for contracts. Such 237
302302 methodology may include, but need not be limited to, consideration of 238
303303 potential revenue to the state from the taxes imposed pursuant to 239
304304 chapters 219 and 229 of the general statutes. The board of trustees shall 240
305305 provide a reasonable opportunity for interested persons to present 241
306306 their views on such policies prior to adoption. The board of trustees 242
307307 shall post such policies on its Internet web site. After such 243
308308 methodology is adopted, the methodology shall be used by The 244
309309 University of Connecticut as part of its procurement processes for any 245
310310 contract entered into, amended or renewed on or after such adoption. 246
311311 (b) Not later than January 1, 2020, the Board of Regents for Higher 247
312312 Education shall adopt, and update as necessary, policies relating to the 248
313313 process for entering into or amending a contract, as defined in section 249
314314 4e-1 of the general statutes, as amended by this act, and determine a 250
315315 methodology for evaluating the potential state revenue from awarding 251
316316 a contract to a business in this state or a business that will hire 252
317317 employees in this state, including the estimated effect on the state 253
318318 economy, as one of the criteria used to evaluate the bids received for 254
319319 contracts. Such methodology may include, but need not be limited to, 255
320320 consideration of potential revenue to the state from the taxes imposed 256
321321 pursuant to chapters 219 and 229 of the general statutes. The Board of 257
322322 Regents for Higher Education shall provide a reasonable opportunity 258
323323 for interested persons to present their views on such policies prior to 259
324324 adoption. The Board of Regents for Higher Education shall post such 260
325325 policies on its Internet web site. After such methodology is adopted, 261
326326 the methodology shall be used by the Connecticut State University 262
327327 System, the regional community-technical college system and Charter 263
328328 Oak State College as part of their procurement processes for any 264
329329 contract entered into, amended or renewed on or after such adoption. 265
330330 (c) Not later than February 1, 2020, and annually thereafter, The 266
331331 University of Connecticut and the Board of Regents for Higher 267 Substitute Bill No. 5504
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338338 Education shall each submit a report, in accordance with the 268
339339 provisions of section 11-4a of the general statutes, to the joint standing 269
340340 committees of the General Assembly having cognizance of matters 270
341341 relating to higher education and government administration. Such 271
342342 report shall include, but need not be limited to, (1) any policies 272
343343 adopted pursuant to this section, and (2) a description of any revisions 273
344344 or amendments made in the previous fiscal year to any previously 274
345345 adopted policies. 275
346346 This act shall take effect as follows and shall amend the following
347347 sections:
348348
349349 Section 1 from passage 4e-1
350350 Sec. 2 from passage New section
351351 Sec. 3 from passage New section
352352 Sec. 4 from passage New section
353353
354+Statement of Legislative Commissioners:
355+In Section 1(28), "and section 4 of this act" was added for consistency
356+with Section 4.
354357
355358 GAE Joint Favorable Subst. -LCO
356-APP Joint Favorable
357359