OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-525 AN ACT CONCERNING THE SELECTION OF CONTRACTORS FOR PUBLIC WORKS PROJECTS. Primary Analyst: WL 4/1/25 Contributing Analyst(s): LG, EMG Reviewer: EMG OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 26 $ FY 27 $ Department of Administrative Services GF - Cost 227,000 227,000 State Comptroller - Fringe Benefits 1 GF - Cost 92,412 92,412 Various State Agencies GF - Potential Cost See Below See Below Note: GF=General Fund Municipal Impact: None Explanation The bill requires state contracting agencies to give preference to in- state contractors when awarding certain contracts, bypassing the current requirement to use competitive bidding to award contracts to the lowest responsible qualified bidder. This results in a potential cost to the state to the extent higher cost contracts are chosen for future projects. The bill results in a cost of $227,000 to DAS in FY 26 and FY 27 for salary expenses and $92,412 in FY 26 and FY 27 to the State Comptroller – Fringe Benefits to hire a bidding specialist and a staff attorney to help 1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 40.71% of payroll in FY 26. 2025SB-00525-R000479-FN.docx Page 2 of 2 with the amended bidding and selection process. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.