Wisconsin Senate Bill SB20

Wisconsin 2023-2024 Regular Session

• Introduced: 1/27/23
• Refer: 1/27/23
• Failed: 4/15/24

Caption

Qualified bidders on state projects. (FE)

Impact

The amendment in SB20 could have broader implications for the state's contracting landscape. By removing the precedent experience requirement, the bill may open the door for a wider range of contractors to participate in state bids. This could lead to increased competition among bidders, potentially benefiting the state through more competitive pricing and diverse contractor capabilities. However, the emphasis on bonding requirements could necessitate that newer or smaller firms partner with larger, more established firms, as securing performance and payment bonds may still pose a challenge for contractors without an extensive portfolio.

Summary

Senate Bill 20 (SB20) seeks to amend the existing qualifications for bidders on state projects in Wisconsin. The bill proposes a significant change in the criteria for certification as a qualified bidder. Instead of requiring bidders to have completed a project similar in size or value to that of the project being bid, the new requirements will focus on a bidder's ability to secure appropriate bonding. Specifically, bidders must demonstrate that they are bondable and can obtain both a 100 percent performance bond and a 100 percent payment bond for the duration of the contract. This shift aims to streamline the bidding process and make it more accessible for potential bidders who may not have extensive prior experience with similar projects.

Contention

As with many legislative changes, SB20 may generate a debate regarding the balance between ensuring quality in state contracts and promoting greater accessibility for bidders. Supporters of the bill argue that this new approach will enhance competition and enable smaller firms an opportunity to participate in government projects. On the other hand, critics may raise concerns that loosening the experience requirements could lead to a decline in project quality or an increase in contractor defaults if these new entrants lack the capability to complete larger or more complex projects successfully.