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OLR Bill Analysis
sSB 1183
AN ACT CONCERNING STATE CONSTRUCTION RELATED
THRESHOLDS.
SUMMARY
This bill (1) increases, from $2 million to $3 million, the cost of a
capital project that the Connecticut State Colleges and Universities
(CSCU), Military Department, and Judicial Department may administer
and (2) requires that these thresholds be adjusted annually for inflation
beginning July 1, 2028.
The bill also (1) increases, from $500,000 to $750,000, the cost of a
construction consultant services contract (e.g., those provided by
architects, professional engineers, or accountants) for which the
Department of Administrative Services (DAS) must select the consultant
using a selection panel process and (2) requires that this threshold be
annually adjusted for inflation beginning July 1, 2024.
Lastly, the bill makes technical and conforming changes (§§ 5-7).
EFFECTIVE DATE: July 1, 2023
§§ 1 & 2 — CAPITAL PROJECTS
By law, DAS generally has charge and supervision of the remodeling,
alteration, repair, or enlargement of any real asset if the project cost
exceeds $500,000. However, under current law, CSCU, the Military
Department, and Judicial Department each have charge and supervision
for projects costing up to $2 million. The bill (1) increases each of these
thresholds to $3 million, through June 30, 2028, and (2) requires that they
be annually adjusted for inflation beginning July 1, 2028.
Specifically, DAS must adjust annually the thresholds by the
percentage change in the Producer Price Index by Commodity:
Construction (Partial) (WPU80), not seasonally adjusted, or its successor 2023SB-01183-R000607-BA.DOCX
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index, as calculated by the U.S. Department of Labor, over the preceding
calendar year. DAS must round the adjustment to the nearest multiple
of $100 and post the adjusted thresholds on its website.
(The bill also requires DAS to make these annual threshold
adjustments for projects UConn administers under the UConn 2000
infrastructure program. However, under existing law unchanged by the
bill, UConn has charge and supervision of these projects regardless of
the cost.)
The bill makes conforming changes to thresholds concerning (1) the
use of competitive bidding by CSCU, the Military Department, and the
Judicial Department and (2) DAS approval of CSCU and Judicial
Department projects. However, it does not similarly adjust these
conforming threshold changes for inflation.
§§ 3 & 4 — CONSTRUCTION CONSU LTANT SERVICES
Under current law, DAS must establish a selection panel to evaluate
consultant services proposals if the estimated cost of those services
exceeds $500,000 (referred to as “projects” in statute and “major
projects” by DAS). The bill (1) increases this threshold to $750,000 and
(2) requires that it be annually adjusted for inflation beginning July 1,
2024. Under the bill, DAS must make the adjustment using the same
index that it must use for adjusting the capital project thresholds (see
above). DAS must round the adjustment to the nearest multiple of $100
and post the adjusted threshold on its website.
By law, selection panels consist of three members for projects of less
than $5 million and five members for projects of $5 million or more.
After evaluating the proposals, the panel must submit a list of the most
qualified firms to the DAS commissioner, who must negotiate a contract
with the firm the panel ranks most qualified for compensation that she
determines to be fair and reasonable to the state (CGS §§ 4b-56 to -58).
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable Substitute 2023SB-01183-R000607-BA.DOCX
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Yea 12 Nay 6 (03/27/2023)