Connecticut House Bill HB06313

Connecticut 2021 Regular Session

• Introduced: 1/29/21
• Refer: 1/29/21

Caption

An Act Concerning The Utilization Of The Safe Harbor Rates For Small Engineering Design Service Firms.

Impact

The bill is expected to have a notable impact on state laws governing procurement for engineering services. By providing the option for small firms to use a standardized Safe Harbor rate instead of undergoing the audit process, HB 6313 could significantly reduce administrative costs and encourage more small businesses to participate in state-funded projects. This flexibility may lead to increased competition and improved service offerings in the engineering sector, particularly for smaller firms that may otherwise struggle with the financial burden of compliance.

Summary

House Bill 6313 aims to amend existing statutes to allow small engineering design service firms to utilize the Safe Harbor indirect cost rate established by the Federal Highway Administration. This change is particularly significant as it enables these firms to bypass extensive audits when they are being considered for projects by the Department of Transportation and other related agencies. The primary goal is to streamline the project bidding process for smaller firms, making it easier for them to compete for government contracts.

Contention

Despite its potential benefits, some stakeholders may express concerns regarding the implications of this bill. Opponents might argue that allowing firms to avoid audits could lead to oversight issues, potentially compromising the quality of services provided to the state. It's essential for state agencies to ensure that while they aim to foster local business participation, they also maintain rigorous standards for accountability and quality in engineering services. Such points of contention will likely arise during discussions and deliberations over this legislation.