Procurement Code Bid "best Value"
Should SB390 pass, it will significantly alter how contracts are awarded in New Mexico. By shifting from a purely cost-based evaluation to a best value framework, the state seeks to enhance the quality of services it procures. This legislative change may streamline procurement procedures and could encourage a broader range of contractors to participate, potentially improving service delivery and efficient resource utilization. Additionally, it emphasizes the importance of workforce development and training as part of procurement evaluations, aligning state contracts with broader economic goals.
Senate Bill 390 aims to amend the procurement processes in New Mexico by establishing a 'best value' criterion for evaluating bids. The bill provides a clear definition of 'best value' and mandates that bids must be assessed based on factors including quality, economic value, efficiency, and the capacity to meet required outcomes. This approach is expected to balance the competing goals of cost-effectiveness and the overall benefit to the community, fostering a more competitive procurement environment.
While there is considerable support for the bill's goals of improving procurement practices, some concerns have been raised regarding the ambiguity in defining 'best value'. Opponents argue that the new methods may lead to subjective evaluations that could favor larger firms over small businesses. Questions have also arisen about the impact on local businesses and whether this change might unintentionally limit competition by making it harder for smaller entities to compete against well-established contractors who can better meet the diverse criteria outlined for best value evaluations.