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F I S C A L I M P A C T R E P O R T
SPONSOR Youngberg
ORIGINAL DATE
LAST UPDATED
2-7-06
2/15/06 HB 115/aSCORC
SHORT TITLE
PROCUREMENT CODE PROFESSIONAL
SERVICE LIMITS
SB
ANALYST Hadwiger/Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
None
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates,Relates to,Conflicts with, Companion to
Duplicates Appropriation in the General Appropriation Act
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
General Services Department (GSD)
Department of Transportation (DOT)
Department of Corrections (DOC)
SUMMARY
Synopsis of SCORC Amendments
The SCORC amendments to House Bill 115 restore provisions in current law that apply a lower
small purchase exemption under the Procurement Code for surveying services. The small pur-
chase exemption for surveying services is also raised from the current statutory level of $5,000 to
$6,000, rather than including such services in the broader $30,000 exemption proposed in the
original bill.
Synopsis of Original Bill
House Bill 115 would amend the Procurement Code to increase the dollar threshold for contract-
pg_0002
House Bill 115/aSCORC Page 2
ing for professional services for architectural, engineering, landscape architectural or surveying
services without a formal selection process from $25 thousand to $30 thousand. The bill would
also eliminate the exception, within the small purchase provisions of Section 13-1-125, for the
small purchase of architectural, landscape architectural, engineering or surveying services, and
permit the state and local entities the power to enter into small purchase contracts not to exceed
$30,000.
FISCAL IMPLICATIONS
DFA does not anticipate a significant fiscal impact from this bill, but noted the personnel of the
General Services Department (GSD) Property Control Division (PCD) could spend fewer work-
hours on issuing and managing requests for proposals which would free these personnel to per-
form other tasks.
SIGNIFICANT ISSUES
DFA indicated that, in 2005, the Legislature increased the small purchase limit for most other
professional services to $30 thousand, but architect/engineer contracts were not changed and re-
mained at the $25 thousand small purchase level. This bill would coordinate such contracts to
match all other professional services contracts at one set amount for small purchases.
The Department of Transportation noted that these changes would provide significant help to the
state in its efforts to quickly secure, without the need for time consuming requests for proposals,
small contracts for professional services. The artificial and arbitrary prohibition of PSA small
purchases would be eliminated, thereby achieving greater procurement flexibility in state pro-
curement. Such expedited small purchases of professional services are often necessary in order
to quickly obtain professional review of the work product submitted by other professionals. This
review would serve to protect and safeguard the public, which depends on the accuracy of design
and engineering in public works construction.
PERFORMANCE IMPLICATIONS
DFA anticipated that one benefit of this bill is that the Property Control Division (PCD) of the
General Services Department (GSD) would have fewer requests for proposals to process since
the small purchase limit would be raised. All agencies would benefit in that the small purchase
amount for all professional services would be the same across the board eliminating some confu-
sion.
OTHER SUBSTANTIVE ISSUES
DFA noted that this Bill would remove some confusion in regard to the small purchase limit on
professional services since, currently, the bulk of such services have a $30,000.00 limit for small
purchases while architect/engineer services have a small purchase limit of only $25,000.00. This
change would bring all professional services to the same small purchase threshold.
DH/yr:nt