Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Sen. Padilla
/Rep. Sarinana
LAST UPDATED
ORIGINAL DATE 2/10/2025
SHORT TITLE DoIT Role in Procurement
BILL
NUMBER Senate Bill 217
ANALYST Hilla
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
GSD No fiscal impact Up to $120.0 Up to $120.0 Up to $240.0 Recurring
Other state
funds
Total No fiscal impact Up to $120.0 Up to $120.0 Up to $240.0 Recurring
Other state
funds
Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Information Technology (DoIT)
Office of Broadband Access and Expansion (OBAE)
General Services Department (GSD)
State Ethics Commission (SEC)
Agency Analysis was Solicited but Not Received From
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of Senate Bill 217
Senate Bill 217 (SB217) amends Section 9-27-6 NMSA 1978 to remove oversight of IT
purchases and contracts from the duties of the secretary of the Department of Information
Technology (DoIT. The amendments allow the DoIT Secretary to remain involved in reviewing
agency IT projects prior to procurement but consolidates the procurement process under the
General Services Department (GSD) in accordance with the Procurement Code.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
GSD states SB217 would require an additional full-time employee (FTE) at a cost of up to $120
thousand. This would affect the department’s Purchasing Division fees fund, which receives
revenue from actual, direct costs of furnishing copies of a public notice or invitation for bids to
the prospective bidders. The addition allows for support of duties previously performed by DoIT. Senate Bill 217 – Page 2
SIGNIFICANT ISSUES
DoIT states SB217 would create efficiency, more specifically for DoIT, GSD, and the
Department of Finance and Administration (DFA), by reducing redundancy. GSD and DFA
currently have oversight authority for executive branch procurements, with an additional layer of
DoIT oversight for IT procurement, which previously had delayed some IT project procurement
due to the back-and-forth among the three agencies.
DoIT states that it approved 248 procurements in FY24, totaling $352.9 million, which includes
211 contracts, 27 contract amendments, and 10 requests for proposals. DoIT currently oversees
53 open agency IT projects that total over $1 billion across all streams of funding. However, the
additional layer of IT procurement oversight at the agency has distracted from project
management. This change would allow DoIT to stay involved in IT project procurement but to
focus on the project itself before procurement occurs.
Enactment of SB217 risks removing important elements from the IT procurement oversight. The
current IT procurement contract is unique and captures information not available in GSD’s
contract templates. Collaboration on the contract template is imperative to ensure procurement
for IT projects captures necessary information, such as independent verification and validation
(IV&V), a third party that monitors an IT project’s status, and performance bonds, in which
payment is withheld until deliverables are completed by the vendor to ensure project timeliness.
Without both DoIT and GSD working on contract templates, key elements such as IV&V and
performance bonds have the potential to be omitted, which could significantly impact the status
of an IT project and accountability from vendors. Given the number of open projects, rising IT
costs, and project delays, it is critical for DoIT to still provide an oversight role in contract
templates should SB217 be enacted.
PERFORMANCE IMPLICATIONS
SB217 will streamline efficiency at both DoIT and GSD. DoIT can focus on managing projects,
eliminate redundancies, and allow all procurement to be housed at GSD. DoIT states this
transition would allow for better planning and involvement in IT projects to help address project
issues in a more thorough and timely manner. There could be potential cost savings to the state if
DoIT can fully transition to a project management role so agencies do not have to outsource
project managers at high costs for IT projects.
ADMINISTRATIVE IMPLICATIONS
DoIT would engage with agencies during development of the contract’s statement of work
(SOW) in advance of submitting the contract to GSD. Once the SOW is approved, the contract
can be released for final review and processing by GSD.
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