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OLR Bill Analysis
HB 6194
AN ACT CONCERNING THE COMPETITIVE BIDDING AND
OVERSIGHT OF QUASI -PUBLIC AGENCY CONTRACTS.
SUMMARY
This bill generally requires quasi-public agencies to follow the same
procedures as state agencies when entering into certain goods and
services contracts. (By law, the state has 17 quasi-public agencies.)
Generally, these procedures require (1) using competitive bidding or
competitive negotiation when purchasing goods and services and (2)
awarding contracts to the lowest responsible qualified bidder or
highest-scoring bidder in a multiple-criteria bid. The bill’s provisions
generally mirror provisions in existing law that apply to executive
branch state agencies (CGS §§ 4a-50, -57 & -59).
The bill also subjects quasi-public agencies to certain oversight by
the State Contracting Standards Board (SCSB). Generally, it applies to
quasi-public agencies provisions in existing law that allow SCSB to
limit state contracting agencies’ authority to enter into contracts or
procurement agreements. It also requires quasi-public agencies to
purchase goods and services using procurement methods specified in
regulations that existing law requires SCSB to adopt. (To date, the
board has not adopted these regulations.)
The bill makes numerous conforming changes to individual quasi-
public agencies’ authorizing statutes where they would otherwise
conflict with the bill’s requirements (§§ 4-17).
EFFECTIVE DATE: October 1, 2021
§ 1 — COMPETITIVE BIDDING REQUIREMENTS
Procedures
The bill’s requirements apply to quasi-public agencies’ purchases of 2021HB-06194-R000498-BA.DOCX
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supplies, materials, equipment, and specified contractual services (e.g.,
laundry and cleaning, equipment maintenance). With certain
exceptions, it requires that purchases of these goods and services be
made using competitive bidding or competitive negotiation (as defined
in existing law) when possible. When using competitive negotiation,
the quasi-public agency must include price as an explicit criterion in
the request for proposals and contract award.
The bill requires quasi-public agencies to adopt procedures
establishing standards and procedures for (1) using competitive
negotiation, including criteria to be considered and each criterion’s
weight, and (2) making additional purchases from existing contracts.
As under existing law, the bill establishes exceptions for (1) minor
nonrecurring and emergency purchases of $10,000 or less and (2)
specified public utility services.
Solicitations
Under the bill, quasi-public agencies must solicit competitive bids
or proposals by noticing the planned purchase in a form and manner
they determine will promote competition and maximize public
participation, including by small contractors certified under the state
set-aside program (see BACKGROUND). The notice must include the
types of goods and services sought by the agency and the contract
award’s estimated value.
When applicable, the notice must also contain (1) a notice of state
law’s nondiscrimination and affirmative action requirements and (2)
provisions for awarding contracts to entities certified under the state
set-aside program (e.g., small contractors and minority business
enterprises).
The bill requires quasi-public agencies to keep bids and proposals
sealed or secured until publicly opened at the time stated in the
solicitation notice.
Contract Awards
The bill requires that all open-market orders or contracts for the 2021HB-06194-R000498-BA.DOCX
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specified goods and services be awarded to the (1) lowest responsible
qualified bidder, (2) highest-scoring bidder in a multiple-criteria bid,
or (3) proposer that the quasi-public agency deems as having the most
advantageous proposal.
“Lowest responsible qualified bidder” refers to the lowest bidder
that has the skill, ability, and integrity needed to perform the work.
“Highest-scoring bidder in a multiple-criteria bid” refers to the bidder
with the highest score for a combination of attributes, including price,
skill, ability, and integrity based on objective criteria established in the
bid solicitation. In both cases, the quasi-public agency must base its
evaluation on the bidder’s fulfillment of past contract obligations and
experience or lack of experience in delivering the specific goods or
services sought in the bid solicitation.
§§ 2 & 3 — SCSB OVERSIGHT
Under current law, SCSB has limited authority over quasi-public
agencies, as they are not included in the definition of “state contracting
agency” in SCSB’s authorizing statutes (however, the State Education
Resource Center (SERC) is a state contracting agency under a statute
governing procurement methods) (see BACKGROUND).
The bill applies to quasi-public agencies provisions in existing law
that allow SCSB to limit state contracting agencies’ authority to enter
into contracts or procurement agreements. Specifically, it allows SCSB,
under specified conditions, to (1) review, terminate, or recommend
termination of a contract or procurement agreement for cause
following specified procedures (e.g., provide the contractor with a
hearing); (2) restrict or terminate a quasi-public agency’s authority to
enter into a contract or procurement agreement; and (3) order a quasi-
public agency to restrict or terminate an employee’s or agent’s
authority to enter into contracts or procurement agreements.
The bill also applies to quasi-public agencies a requirement in
existing law that all goods and services purchases by a state
contracting agency be made by (1) competitive sealed bidding or
proposals, (2) small purchase procedure, (3) sole source procurement, 2021HB-06194-R000498-BA.DOCX
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(4) emergency procurements, or (5) a bid or proposal waiver for
extraordinary conditions (CGS § 4e-19). Under current law, SERC is
the only quasi-public agency subject to these requirements.
These provisions require SCSB to adopt implementing regulations
before they become operative. However, SCSB has not adopted any
such implementing regulations to date. Therefore, it is unclear how the
statutes would apply to quasi-public agencies.
BACKGROUND
Related Bills
sHB 6664, reported favorably by the Government Administration
and Elections (GAE) Committee, makes numerous changes that,
generally, increase the executive and legislative branches’ oversight of
quasi-public agencies.
sHB 6577, reported favorably by the GAE Committee, requires the
State Properties Review Board to review and approve or disapprove
certain real estate transactions proposed by quasi-public agencies.
Attorney General Opinion
In a 2021 opinion (Attorney General Opinion 2021-01), the attorney
general concluded that most SCSB statutes give the board authority
over state contracting agencies only, with only limited authority over
quasi-public agencies. He noted that although the board has authority
over certain bid contests involving quasi-public agencies, generally its
authority over quasi-public agencies “is much more limited and
circumscribed relative to its authority over state contracting agencies.”
Set-Aside Program
The state set-aside program requires state agencies and certain
political subdivisions (including quasi-public agencies) to set aside
25% of the total value of all contracts they let for construction, goods,
and services each year for exclusive bidding by certified small
contractors. The agencies must further reserve 25% of the set-aside
value (6.25% of the total) for exclusive bidding by certified minority
business enterprises (MBE). 2021HB-06194-R000498-BA.DOCX
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By law, a “certified small contractor” is a business that (1) maintains
its principal place of business in Connecticut, (2) had gross revenues of
$20 million or less during its most recent fiscal year, and (3) is
independent. MBEs are small contractors owned by women,
minorities, or people with disabilities. The owner must have
managerial and technical competence and experience directly related
to his or her principal business activities (CGS § 4a-60g(a)).
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable
Yea 19 Nay 0 (03/31/2021)