SB 795 - HB 1173
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 20, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 795 - HB 1173
SUMMARY OF BILL: Authorizes local governments to purchase goods and services,
without bid or quotations, from vendors awarded federal General Services Administration (GSA)
schedule contracts at prices equal to the vendor’s current GSA schedule price. Authorizes that terms
and conditions agreeable to a local government may be used in lieu of the GSA terms and
conditions in such purchases.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 12-3-1201(c), local governments are authorized to make
purchases of goods and services included in GSA contracts or other applicable federal open
purchase contracts either directly or through the appropriate state agency; provided that no
purchase shall be made at a price higher than that which is contained in the contract
between the GSA and the affected vendor.
• The proposed legislation will allow local governments to purchase directly from vendors
awarded GSA contracts without solicitation of bids or quotes, at prices equal to those
established in such contracts, and in terms and conditions agreeable to the local
government, in lieu of GSA terms and conditions.
• Pursuant to Tenn. Code Ann. § 12-3-201(8), goods are all personal property, including, but
not limited to, supplies equipment, materials, printing, and insurance, and does not include
real property.
• The proposed legislation expands the definition of goods to also mean all improvements to
real property, including, but not limited to, buildings, structures, equipment, fixtures, and
anything else permanently attached to real property, but does not include real property.
• Though competitively bid procurements are typically estimated to result in the most cost-
effective purchase for a governmental entity, it is unknown if a local government’s purchase
of goods and services through a GSA vendor contract will result in any significant deviation
from the current costs incurred for such goods and services.
• It is generally assumed that local governments will enter into such contracts if the terms are
at least as favorable as alternative procurement methods, and that any purchases through a
GSA vendor contract will result in no significant impact to the total amount of local
expenditures incurred for similar services or goods in the absence of this legislation.
• Local governments may experience a decrease in administrative burden and expenditures
for no longer soliciting bids or quotes for such goods and services.
SB 795 - HB 1173 2
• The proposed legislation may result in permissive fluctuations to local expenditures;
however, it is estimated that the net impact to local expenditures is not significant.
• Any impact to state government is not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director