LCO No. 3049 1 of 7 General Assembly Raised Bill No. 469 February Session, 2022 LCO No. 3049 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by: (GAE) AN ACT CONCERNING THE USE OF COMPETITIVE PROCUREMENT FOR STATE CONTRACTS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 4-212 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2022): 2 As used in this section and sections [4-212] 4-213 to 4-219, inclusive: 3 (1) "Competitive negotiation" means a procedure for contracting for 4 services in which (A) proposals are solicited from qualified persons, 5 firms or corporations by a request for proposals or any other form of 6 competitive procurement, and (B) changes may be negotiated in 7 proposals and prices after being submitted. 8 (2) "Competitive procurement" means the purchase or acquisition of 9 services by a state agency through an open and fair process, where all 10 responsible entities have an equal opportunity to pursue, and 11 potentially be selected for, a contract to provide the state agency with 12 the desired services. 13 Raised Bill No. 469 LCO No. 3049 2 of 7 [(2)] (3) "Personal service contractor" means any person, firm or 14 corporation not employed by the state, who is hired by a state agency 15 for a fee to provide services to the agency. The term "personal service 16 contractor" [shall] does not include (A) a person, firm or corporation 17 providing "contractual services", as defined in section 4a-50, as 18 amended by this act, to the state, (B) a "consultant", as defined in section 19 4b-55, (C) a "consultant", as defined in section 13b-20b, (D) an agency of 20 the federal government, of the state or of a political subdivision of the 21 state, or (E) a person, firm or corporation providing consultant services 22 for information and telecommunications systems authorized under 23 subdivision (3) of subsection (b) of section 4d-2. 24 [(3)] (4) "Personal service agreement" means a written agreement 25 defining the services or end product to be delivered by a personal 26 service contractor to a state agency, excluding any agreement with a 27 personal service contractor that the state accounting manual does not 28 require to be submitted to the Comptroller. 29 [(4)] (5) "Secretary" means the Secretary of the Office of Policy and 30 Management. 31 [(5)] (6) "State agency" means a department, board, council, 32 commission, institution or other executive branch agency. 33 Sec. 2. Section 4-214 of the general statutes is repealed and the 34 following is substituted in lieu thereof (Effective October 1, 2022): 35 Each personal service agreement executed (1) on or after July 1, 1994, 36 until June 30, 2023, and having a cost of not more than twenty thousand 37 dollars and a term of not more than one year, and (2) on or after July 1, 38 2023, and having a cost of not more than fifty thousand dollars and a 39 term of not more than one year, shall be based, when possible, on 40 competitive negotiation or competitive quotations. 41 Sec. 3. Section 4-215 of the general statutes is repealed and the 42 following is substituted in lieu thereof (Effective October 1, 2022): 43 Raised Bill No. 469 LCO No. 3049 3 of 7 (a) Each personal service agreement executed on or after July 1, 1994, 44 until June 30, 2023, and having a cost of more than twenty thousand 45 dollars but not more than fifty thousand dollars and a term of not more 46 than one year, or executed on or after July 1, 2023, and having a cost of 47 more than fifty thousand dollars and a term of not more than one year, 48 shall be based on competitive negotiation or competitive quotations, 49 unless the state agency purchasing the personal services determines that 50 a sole source purchase is required and applies to the secretary for a 51 waiver from such requirement and the secretary grants the waiver. Not 52 later than March 1, 1994, the secretary shall adopt guidelines for 53 determining the types of services that may qualify for such waivers. The 54 qualifying services shall include, but not be limited to, (1) services for 55 which the cost to the state of a competitive selection procedure would 56 outweigh the benefits of such procedure, as documented by the state 57 agency, (2) proprietary services, (3) services to be provided by a 58 contractor mandated by the general statutes or a public or special act, 59 and (4) emergency services, including services needed for the protection 60 of life or health. The secretary shall post any approvals of requests for a 61 waiver received under this section on the State Contracting Portal. Not 62 later than January 15, 2020, and annually thereafter, the secretary shall 63 submit a report, in accordance with the provisions of section 11-4a, to 64 the joint standing committees of the General Assembly having 65 cognizance of matters relating to appropriations and the budgets of state 66 agencies and government administration and the State Contracting 67 Standards Board listing any such waiver requests received during the 68 prior year and the justification for the grant or denial of such request. 69 (b) [The secretary] Prior to submitting an application to the secretary 70 for approval of a sole source purchase of audit services, the state agency 71 shall [immediately] notify the Auditors of Public Accounts of any 72 [application that the secretary receives for approval of a sole source 73 purchase of audit services] such intended application and give the 74 auditors the opportunity to review the application to advise the state 75 agency and secretary as to whether such services are necessary and, if 76 so, whether such services could be provided by said auditors. 77 Raised Bill No. 469 LCO No. 3049 4 of 7 Sec. 4. Subsection (a) of section 4-216 of the 2022 supplement to the 78 general statutes is repealed and the following is substituted in lieu 79 thereof (Effective October 1, 2022): 80 (a) No state agency may execute a personal service agreement having 81 a cost of more than fifty thousand dollars or a term of more than one 82 year, without the approval of the secretary. A state agency may apply 83 for an approval by submitting the following information to the 84 secretary: (1) A description of the services to be purchased and the need 85 for such services; (2) an estimate of the cost of the services and the term 86 of the agreement; (3) whether the services are to be on-going; (4) 87 whether the state agency has contracted out for such services during the 88 preceding two years and, if so, the name of the contractor, term of the 89 agreement with such contractor and the amount paid to the contractor; 90 (5) whether any other state agency has the resources to provide the 91 services; (6) whether the agency intends to purchase the services by 92 competitive negotiation and, if not, why; and (7) whether it is possible 93 to purchase the services on a cooperative basis with other state agencies. 94 The secretary shall approve or disapprove an application [within] not 95 later than fifteen business days after receiving it and any necessary 96 supporting information. [, provided if the secretary does not act within 97 such fifteen-day period the application shall be deemed to have been 98 approved. The secretary shall immediately notify the Auditors of Public 99 Accounts of any application which the secretary receives] Prior to 100 submitting an application for approval of a personal services agreement 101 for audit services to the secretary, the state agency shall notify the 102 Auditors of Public Accounts of such intended application and give said 103 auditors an opportunity to review the application during such fifteen-104 day period and advise the state agency and secretary as to whether such 105 audit services are necessary and, if so, could be provided by said 106 auditors. 107 Sec. 5. Subsection (a) of section 4-217 of the general statutes is 108 repealed and the following is substituted in lieu thereof (Effective October 109 1, 2022): 110 Raised Bill No. 469 LCO No. 3049 5 of 7 (a) [Not later than March 1, 1994, the] The Secretary of the Office of 111 Policy and Management shall establish standards for state agencies to 112 follow in entering into personal service agreements. The standards shall 113 include, but not be limited to, provisions for: (1) Evaluating the need to 114 use a personal service agreement, (2) developing a request for proposals 115 or any other form of competitive procurement, (3) advertising for 116 personal service contractors, (4) evaluating submitted proposals, (5) 117 selecting a personal service contractor, including compliance with 118 section 4a-60g, (6) systematically monitoring and evaluating personal 119 service contractor performance, (7) documenting the entire process for 120 selecting and managing personal service contractors, and (8) carrying 121 out any other aspect of such process. 122 Sec. 6. Subsection (a) of section 4-218 of the general statutes is 123 repealed and the following is substituted in lieu thereof (Effective October 124 1, 2022): 125 (a) Not later than October 1, 2009, and annually thereafter, the 126 secretary shall submit a report to the General Assembly indicating (1) 127 for each personal service agreement, pursuant to sections 4-214 to 4-216, 128 inclusive, as amended by this act, and executed during the preceding 129 fiscal year, (A) the name of the personal service contractor, (B) a 130 description of the services provided, (C) the term and cost of the 131 agreement, and (D) the method of selecting the personal service 132 contractor; and (2) for each such agreement either executed or otherwise 133 in effect during the preceding fiscal year, (A) the amount of all payments 134 made during the preceding fiscal year to the personal service contractor, 135 [and] (B) the amount of any federal or private funds allocated for such 136 payments, and (C) the total amount of all such payments. 137 Sec. 7. Section 4a-50 of the general statutes is repealed and the 138 following is substituted in lieu thereof (Effective October 1, 2022): 139 When used in this chapter, unless the context indicates a different 140 meaning: 141 (1) "State agency" includes any officer, department, board, council, 142 Raised Bill No. 469 LCO No. 3049 6 of 7 commission, institution or other agency of the Executive Department of 143 the state government; 144 (2) "Supplies", "materials" and "equipment" mean any and all articles 145 of personal property furnished to or used by any state agency, including 146 all printing, binding, publication of laws, stationery, forms, and reports; 147 (3) "Contractual services" means any and all laundry and cleaning 148 service, pest control service, janitorial service, security service, the rental 149 and repair, or maintenance, of equipment, machinery and other state-150 owned personal property, advertising [and photostating, 151 mimeographing,] and other service arrangements where the services are 152 provided by persons other than state employees; 153 (4) "Competitive bidding" means the submission of prices by persons, 154 firms or corporations competing for a contract to provide supplies, 155 materials, equipment or contractual services, under a procedure in 156 which the contracting authority does not negotiate prices; 157 (5) "Competitive negotiation" means a procedure for contracting for 158 supplies, materials, equipment or contractual services, in which (A) 159 proposals are solicited from qualified suppliers by a request for 160 proposals or any other form of competitive procurement, and (B) 161 changes may be negotiated in proposals and prices after being 162 submitted; 163 (6) "Competitive procurement" means the purchase or acquisition of 164 services by a state agency through an open and fair process, where all 165 responsible entities have an equal opportunity to pursue, and 166 potentially be selected for, a contract to provide the state agency with 167 the desired services; 168 [(6)] (7) "Bidder" means a person, firm or corporation submitting a 169 competitive bid in response to a solicitation or any other form of 170 competitive procurement; and 171 [(7)] (8) "Proposer" means a person, firm or corporation submitting a 172 Raised Bill No. 469 LCO No. 3049 7 of 7 proposal in response to a request for proposals or any other form of 173 competitive procurement. 174 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2022 4-212 Sec. 2 October 1, 2022 4-214 Sec. 3 October 1, 2022 4-215 Sec. 4 October 1, 2022 4-216(a) Sec. 5 October 1, 2022 4-217(a) Sec. 6 October 1, 2022 4-218(a) Sec. 7 October 1, 2022 4a-50 Statement of Purpose: To define competitive procurement and permit its use for the purchase or acquisition of services by a state agency. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]