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General Assembly Substitute Bill No. 5504
January Session, 2019
AN ACT CONCERNING TH E NET ECONOMIC VALUE OF
CONTRACTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4e-1 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
For the purposes of sections 4e-1 to 4e-47, inclusive, and section 2 of 3
this act: 4
(1) "Best value selection" means a contract selection process in which 5
the award of a contract is based on a combination of quality, timeliness 6
and cost factors; 7
(2) "Bid" means an offer, submitted in response to an invitation to 8
bid, to furnish supplies, materials, equipment, construction or 9
contractual services to a state contracting agency under prescribed 10
conditions at a stated price; 11
(3) "Bidder" means a business submitting a bid in response to an 12
invitation to bid by a state contracting agency; 13
(4) "Business" means any individual or sole proprietorship, 14
partnership, firm, corporation, trust, limited liability company, limited 15
liability partnership, joint stock company, joint venture, association or 16
other legal entity through which business for profit or not-for-profit is 17
conducted; 18 Substitute Bill No. 5504
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(5) "Competitive bidding" means the submission of prices by a 19
business competing for a contract to provide supplies, materials, 20
equipment or contractual services to a state contracting agency, under 21
a procedure in which the contracting authority does not negotiate 22
prices, as set forth in statutes and regulations concerning procurement; 23
(6) "Consultant" means (A) any architect, professional engineer, 24
landscape architect, land surveyor, accountant, interior designer, 25
environmental professional or construction administrator, who is 26
registered or licensed to practice such person's profession in 27
accordance with the applicable provisions of the general statutes, (B) 28
any planner or any environmental, management or financial specialist, 29
or (C) any person who performs professional work in areas including, 30
but not limited to, educational services, medical services, information 31
technology and real estate appraisal; 32
(7) "Consultant services" means those professional services rendered 33
by a consultant and any incidental services that a consultant and those 34
in the consultant's employ are authorized to perform; 35
(8) "Contract" or "state contract" means an agreement or a 36
combination or series of agreements between a state contracting 37
agency or quasi-public agency and a business for: 38
(A) A project for the construction, reconstruction, alteration, 39
remodeling, repair or demolition of any public building, public work, 40
mass transit, rail station, parking garage, rail track or airport; 41
(B) Services, including, but not limited to, consultant and 42
professional services; 43
(C) The acquisition or disposition of personal property; 44
(D) The provision of goods and services, including, but not limited 45
to, the use of purchase of services contracts and personal service 46
agreements; 47 Substitute Bill No. 5504
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(E) The provision of information technology, state agency 48
information system or telecommunication system facilities, equipment 49
or services; 50
(F) A lease; or 51
(G) A licensing agreement; 52
"Contract" or "state contract" does not include a contract between a 53
state agency or a quasi-public agency and a political subdivision of the 54
state; 55
(9) "Term contract" means the agreement reached when the state 56
accepts a bid or proposal to furnish supplies, materials, equipment or 57
contractual services at a stated price for a specific period of time in 58
response to an invitation to bid; 59
(10) "Contract risk assessment" means (A) the identification and 60
evaluation of loss exposures and risks, including, but not limited to, 61
business and legal risks associated with the contracting process and 62
the contracted goods and services, and (B) the identification, 63
evaluation and implementation of measures available to minimize 64
potential loss exposures and risks; 65
(11) "Contractor" means any business that is awarded, or is a 66
subcontractor under, a contract or an amendment to a contract with a 67
state contracting agency under statutes and regulations concerning 68
procurement, including, but not limited to, a small contractor, minority 69
business enterprise, an individual with a disability, as defined in 70
section 4a-60, or an organization providing products and services by 71
persons with disabilities; 72
(12) "Contractual services" means the furnishing of labor by a 73
contractor, not involving the delivery of a specific end product other 74
than reports, which are merely incidental to the required performance 75
and includes any and all laundry and cleaning service, pest control 76
service, janitorial service, security service, the rental and repair, or 77 Substitute Bill No. 5504
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maintenance, of equipment, machinery and other state -owned 78
personal property, advertising and photostating, mimeographing, 79
human services and other service arrangements where the services are 80
provided by persons other than state employees. "Contractual services" 81
includes the design, development and implementation of technology, 82
communications or telecommunications systems or the infrastructure 83
pertaining thereto, including hardware and software and services for 84
which a contractor is conferred a benefit by the state, whether or not 85
compensated by the state. "Contractual services" does not include 86
employment agreements or collective bargaining agreements; 87
(13) "Data" means recorded information, regardless of form or 88
characteristic; 89
(14) "Vote of two-thirds of the members of the board present and 90
voting" means a vote by the State Contracting Standards Board that is 91
agreed upon by two-thirds of the members of the State Contracting 92
Standards Board present and voting for a particular purpose and that 93
includes the vote of one member of the board appointed by a 94
legislative leader; 95
(15) "Electronic" means electrical, digital, magnetic, optical, 96
electromagnetic, or any other similar technology; 97
(16) "Emergency procurement" means procurement by a state 98
contracting agency, quasi-public agency, as defined in section 1-120, 99
judicial department or constituent unit of higher education that is 100
made necessary by a sudden, unexpected occurrence that poses a clear 101
and imminent danger to public safety or requires immediate action to 102
prevent or mitigate the loss or impairment of life, health, property or 103
essential public services or in response to a court order, settlement 104
agreement or other similar legal judgment; 105
(17) "Equipment" means personal property of a durable nature that 106
retains its identity throughout its useful life; 107
(18) "Materials" means items required to perform a function or used 108 Substitute Bill No. 5504
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in a manufacturing process, particularly those incorporated into an 109
end product or consumed in its manufacture; 110
(19) "Nonprofit agency" means any organization that is not a for-111
profit business under Section 501(c)(3) of the Internal Revenue Code of 112
1986, or any subsequent corresponding internal revenue code of the 113
United States, as from time to time amended, makes no distribution to 114
its members, directors or officers and provides services contracted for 115
by (A) the state, or (B) a nonstate entity; 116
(20) "Professional services" means any type of service to the public 117
that requires that members of a profession rendering such service 118
obtain a license or other legal authorization as a condition precedent to 119
the rendition thereof, including, but not limited to, the professional 120
services of architects, professional engineers, or jointly by architects 121
and professional engineers, landscape architects, certified public 122
accountants and public accountants, land surveyors, attorneys-at-law, 123
psychologists, licensed marital and family therapists, licensed 124
professional counselors and licensed clinical social workers as well as 125
such other professional services described in section 33-182a; 126
(21) "Privatization contract" means an agreement or series of 127
agreements between a state contracting agency and a person or entity 128
in which such person or entity agrees to provide services that are 129
substantially similar to and in lieu of services provided, in whole or in 130
part, by state employees, other than contracts with a nonprofit agency, 131
which are in effect as of January 1, 2009, and which through a renewal, 132
modification, extension or rebidding of contracts continue to be 133
provided by a nonprofit agency; 134
(22) "Procurement" means contracting for, buying, purchasing, 135
renting, leasing or otherwise acquiring or disposing of, any supplies, 136
services, including but not limited to, contracts for purchase of services 137
and personal service agreements, interest in real property, or 138
construction, and includes all government functions that relate to such 139
activities, including best value selection and qualification based 140 Substitute Bill No. 5504
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selection; 141
(23) "Proposer" means a business submitting a proposal to a state 142
contracting agency in response to a request for proposals or other 143
competitive sealed proposal; 144
(24) "Public record" means a public record, as defined in section 1-145
200; 146
(25) "Qualification based selection" means a contract selection 147
process in which the award of a contract is primarily based on an 148
assessment of contractor qualifications and on the negotiation of a fair 149
and reasonable price; 150
(26) "Regulation" means regulation, as defined in section 4-166; 151
(27) "Request for proposals" means all documents, whether attached 152
or incorporated by reference, utilized for soliciting proposals; 153
(28) "State contracting agency" means any executive branch agency, 154
board, commission, department, office, institution or council. "State 155
contracting agency" does not include the judicial branch, the legislative 156
branch, the offices of the Secretary of the State, the State Comptroller, 157
the Attorney General, the State Treasurer, with respect to their 158
constitutional functions, any state agency with respect to contracts 159
specific to the constitutional and statutory functions of the office of the 160
State Treasurer. For the purposes of section 4e-16 and section 4 of this 161
act, "state contracting agency" includes any constituent unit of the state 162
system of higher education and for the purposes of section 4e-19, "state 163
contracting agency" includes the State Education Resource Center, 164
established under section 10-4q; 165
(29) "Subcontractor" means a subcontractor of a contractor for work 166
under a contract or an amendment to a contract; 167
(30) "Supplies" means any and all articles of personal property, 168
including, but not limited to, equipment, materials, printing, insurance 169 Substitute Bill No. 5504
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and leases of real property, excluding land or a permanent interest in 170
land furnished to or used by any state agency; 171
(31) "Infrastructure facility" means a building, structure or network 172
of buildings, structures, pipes, controls and equipment that provide 173
transportation, utilities, public education or public safety services. 174
Infrastructure facility includes government office buildings, public 175
schools, jails, water treatment plants, distribution systems and 176
pumping stations, wastewater treatment plants, collections systems 177
and pumping stations, solid waste disposal plants, incinerators, 178
landfills, and related facilities, public roads and streets, highways, 179
public parking facilities, public transportation systems, terminals and 180
rolling stock, rail, air and water port structures, terminals and 181
equipment; and 182
(32) "State employee" means state employee, as defined in section 5-183
154 and, for purposes of section 4e-16, state employee includes an 184
employee of any state contracting agency. 185
Sec. 2. (NEW) (Effective from passage) (a) The Commissioner of 186
Administrative Services shall determine a methodology for evaluating 187
the potential state revenue from awarding a contract to a business in 188
this state or a business that will hire employees in this state, including 189
the estimated effect on the state economy, as one of the criteria used to 190
evaluate the bids received for state contracts. Such methodology may 191
include, but need not be limited to, consideration of potential revenue 192
to the state from the taxes imposed pursuant to chapters 219 and 229 of 193
the general statutes. After such methodology is adopted under 194
subsection (b) of this section, the methodology shall be used by the 195
commissioner and any other state contracting agency, other than the 196
Department of Transportation, as part of their procurement processes 197
for any contract entered into, amended or renewed on or after such 198
adoption. 199
(b) The Commissioner of Administrative Services shall, by 200
regulations adopted in accordance with the provisions of chapter 54 of 201 Substitute Bill No. 5504
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the general statutes, adopt the methodology for evaluating bids 202
received for contracts described in subsection (a) of this section. Not 203
later than January 1, 2020, the commissioner shall post notice of intent 204
to adopt such regulations on the Department of Administrative 205
Services' Internet web site and the eRegulations System. 206
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 207
"business", "contract" and "procurement" have the same meanings as 208
provided in section 4e-1 of the general statutes, as amended by this act. 209
The Commissioner of Transportation shall determine a methodology 210
for evaluating the potential state revenue from awarding a contract to 211
a business in this state or a business that will hire employees in this 212
state, including the estimated effect on the state economy, as one of the 213
criteria used to evaluate the bids received for contracts. Such 214
methodology may include, but need not be limited to, consideration of 215
potential revenue to the state from the taxes imposed pursuant to 216
chapters 219 and 229 of the general statutes. After such methodology is 217
adopted under subsection (b) of this section, the methodology shall be 218
used by the Department of Transportation as part of its procurement 219
processes for any contract entered into, amended or renewed on or 220
after such adoption. 221
(b) The Commissioner of Transportation shall, by regulations 222
adopted in accordance with the provisions of chapter 54 of the general 223
statutes, adopt the methodology for evaluating bids received for 224
contracts described in subsection (a) of this section. Not later than 225
January 1, 2020, the commissioner shall post notice of intent to adopt 226
such regulations on the Department of Transportation's Internet web 227
site and the eRegulations System. 228
Sec. 4. (NEW) (Effective from passage) (a) Not later than January 1, 229
2020, the Board of Trustees of The University of Connecticut shall 230
adopt, and update as necessary, policies relating to the process for 231
entering into or amending a contract, as defined in section 4e-1 of the 232
general statutes, as amended by this act, and determine a methodology 233
for evaluating the potential state revenue from awarding a contract to 234 Substitute Bill No. 5504
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a business in this state or a business that will hire employees in this 235
state, including the estimated effect on the state economy, as one of the 236
criteria used to evaluate the bids received for contracts. Such 237
methodology may include, but need not be limited to, consideration of 238
potential revenue to the state from the taxes imposed pursuant to 239
chapters 219 and 229 of the general statutes. The board of trustees shall 240
provide a reasonable opportunity for interested persons to present 241
their views on such policies prior to adoption. The board of trustees 242
shall post such policies on its Internet web site. After such 243
methodology is adopted, the methodology shall be used by The 244
University of Connecticut as part of its procurement processes for any 245
contract entered into, amended or renewed on or after such adoption. 246
(b) Not later than January 1, 2020, the Board of Regents for Higher 247
Education shall adopt, and update as necessary, policies relating to the 248
process for entering into or amending a contract, as defined in section 249
4e-1 of the general statutes, as amended by this act, and determine a 250
methodology for evaluating the potential state revenue from awarding 251
a contract to a business in this state or a business that will hire 252
employees in this state, including the estimated effect on the state 253
economy, as one of the criteria used to evaluate the bids received for 254
contracts. Such methodology may include, but need not be limited to, 255
consideration of potential revenue to the state from the taxes imposed 256
pursuant to chapters 219 and 229 of the general statutes. The Board of 257
Regents for Higher Education shall provide a reasonable opportunity 258
for interested persons to present their views on such policies prior to 259
adoption. The Board of Regents for Higher Education shall post such 260
policies on its Internet web site. After such methodology is adopted, 261
the methodology shall be used by the Connecticut State University 262
System, the regional community-technical college system and Charter 263
Oak State College as part of their procurement processes for any 264
contract entered into, amended or renewed on or after such adoption. 265
(c) Not later than February 1, 2020, and annually thereafter, The 266
University of Connecticut and the Board of Regents for Higher 267 Substitute Bill No. 5504
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Education shall each submit a report, in accordance with the 268
provisions of section 11-4a of the general statutes, to the joint standing 269
committees of the General Assembly having cognizance of matters 270
relating to higher education and government administration. Such 271
report shall include, but need not be limited to, (1) any policies 272
adopted pursuant to this section, and (2) a description of any revisions 273
or amendments made in the previous fiscal year to any previously 274
adopted policies. 275
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 4e-1
Sec. 2 from passage New section
Sec. 3 from passage New section
Sec. 4 from passage New section
GAE Joint Favorable Subst. -LCO
APP Joint Favorable