First Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 11-0371.01 Nicole Myers HOUSE BILL 11-1142 HOUSE SPONSORSHIP Ryden, Court, Gardner D., Lee SENATE SPONSORSHIP (None), House Committees Senate Committees Economic and Business Development A BILL FOR AN ACT Concerning the requirement that state agencies consider the state economic impact of responses to state procurement contract solicitations as a component of awarding the contract. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill requires any state agency that issues an invitation for bids or a request for proposals for a procurement contract (invitation or request) to consider the state economic impact of the bids or offers received in response to the invitation or request. If the contract is to be awarded through competitive sealed bidding, the contract shall be awarded to the low responsible bidder with the greatest state economic impact. If the contract is to be awarded through competitive sealed proposals, the state economic impact of an offer shall be one of the factors considered in evaluating the offer. The executive director of the department of personnel (director) or the director's designee is required to create a method to calculate the state economic impact of each bid or offer received by a purchasing agency in response to an invitation or request and to establish a list of state economic impact questions to be included in all such invitations or requests. The bill specifies the information that shall be considered in determining the state economic impact of a bid or offer. The bill requires any invitation or request to include the state economic impact questions created by the director or the director's designee and requires any bidder or offeror that responds to such invitation or request to submit accurate and complete information in response to the questions to be evaluated for the procurement contract. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 2 of article 103 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 24-103-210. State economic impact analysis. (1) When a contract for supplies or services is to be awarded through competitive sealed bidding pursuant to section 24-103-202 or through competitive sealed best value bidding pursuant to section 24-103-202.3, the state purchasing director or the head of the purchasing agency shall consider the state economic impact of the bid as a component of the cost assessment of the bid. The state purchasing director or the head of the purchasing agency shall award a contract to the low responsible bidder with the greatest state economic impact as determined pursuant to this section. (2) When a contract for supplies, services, or professional services is to be awarded through a request for competitive sealed proposals pursuant to section 24-103-203, one of the evaluation factors stated in the request shall be the state economic impact of the offeror's proposal. Such economic impact shall be determined pursuant to this section. (3) The executive director or the executive director's designee shall create a method for determining the state economic impact of each bid or offer submitted in response to an invitation for bids or request for proposals for a procurement contract. In connection with developing the method for determining the state economic impact of a bid or offer, the executive director or the executive director's designee shall establish a list of state economic impact questions to be included in all invitations for bids or requests for proposals. The information solicited and used to determine the state economic impact of each bid or offer shall include, but need not be limited to, the following: (a) Whether the bidder or offeror is headquartered in Colorado; (b) The percentage ownership of the bidder or offeror's company that is owned by one or more Colorado residents; (c) The number of employees employed by the bidder or offeror who will likely be assigned to the proposed project who live in Colorado, and the percentage of the total number of employees who will likely be assigned to the project who live in Colorado; (d) The estimated percentage of purchases that the bidder or offeror will make in connection with the proposed project that are from Colorado-based sources; and (e) The estimated percentage of operating expenses that will be incurred by the bidder or offeror in connection with the proposed project that will be paid to Colorado-based sources. (4) From the list of questions developed pursuant to subsection (3) of this section, the executive director or the executive director's designee shall devise a system for determining, at the minimum, the following information regarding the state economic impact of any bid or offer: (a) The estimated amount of Colorado state sales and use tax to be generated and paid by the bidder or offeror as a result of the proposed project; (b) The estimated amount of Colorado state personal income tax or Colorado state corporate income tax to be generated and paid by the bidder or offeror as a result of the proposed project; (c) The estimated amount of Colorado state property tax to be generated and paid by the bidder or offeror as a result of the proposed project; and (d) The estimated amount of any other Colorado state taxes to be generated and paid by the bidder or offeror as a result of the proposed project. (5) Any invitation for bids or request for proposals issued by the state purchasing director or the head of the purchasing agency for a procurement contract shall include the state economic impact questions created pursuant to subsection (3) of this section in the information solicited in connection with the invitation for bids or request for proposals. (6) Any bidder or offeror that responds to an invitation for bids or a request for proposals issued by the state purchasing director or the head of the purchasing agency shall submit accurate and complete information in response to the state economic impact questions to be evaluated for the procurement contract. SECTION 2. 24-103-202 (7), Colorado Revised Statutes, is amended to read: 24-103-202. Competitive sealed bidding. (7) Subject to the condition specified in section 24-103-210 (1), the contract shall be awarded with reasonable promptness by written notice to the low responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids, except as otherwise provided for certain low tie bids under section 24-103-202.5. In the event that all bids for a construction project exceed available funds, as certified by the appropriate fiscal officer, the head of a purchasing agency is authorized, in situations where time or economic considerations preclude resolicitation of work of a reduced scope, to negotiate an adjustment of the bid price with the low responsible bidder in order to bring the bid within the amount of available funds; except that the functional specifications integral to completion of the project may not be reduced in scope, taking into account the project plan, design, and specifications and quality of materials. SECTION 3. 24-103-202.3 (4), Colorado Revised Statutes, is amended to read: 24-103-202.3. Competitive sealed best value bidding. (4) Subject to the condition specified in section 24-103-210 (1), the contract shall be awarded with reasonable promptness by written notice to the low responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids except as otherwise provided for certain low tie bids under section 24-103-202.5. SECTION 4. Act subject to petition - effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2011, if adjournment sine die is on May 11, 2011); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part shall not take effect unless approved by the people at the general election to be held in November 2012 and shall take effect on the date of the official declaration of the vote thereon by the governor.