Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0224.02 Nicole Myers x4326 HOUSE BILL 14-1070 HOUSE SPONSORSHIP Lawrence, SENATE SPONSORSHIP (None), House Committees Senate Committees Business, Labor, Economic, & Workforce Development A BILL FOR AN ACT Concerning the requirement that a county government use a competitive bidding process for procurement contracts over a certain dollar amount. 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 a county government to procure construction through a competitive bidding process if a single contract for construction may be reasonably expected to cost $100,000 or more. Competitive bidding may include competitive sealed bidding, design-build proposals, construction manager general contractor proposals, or any other form of competitive contracting method that the county chooses. The bill includes an exception to the competitive bidding process requirement if the county government does not receive any bids, the county government has rejected all bids, or the responsible officer determines that it is necessary to make contracts under emergency conditions because a threat to public health, welfare, or safety exists. The bill requires county governments to issue an invitation for bids with adequate public notice. The county is required to open bids publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and the name of each bidder shall be open to public inspection. The bill prohibits a county government from dividing the procurement of construction into 2 or more separate projects for the sole purpose of evading or attempting to evade the competitive bidding process requirement. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 7 to article 11 of title 30 as follows: PART 7 BIDDING FOR COUNTY GOVERNMENT PROCUREMENT CONTRACTS 30-11-701. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) The construction contractors and subcontractors that serve county government construction projects are a substantial part of the Colorado economy; (b) Encouraging county governments to expand construction projects that may be normally self-performed by county governments to the private sector for bidding when the project is reasonably expected to cost or exceed one hundred thousand dollars may lead to decreased cost to the taxpayer and stimulate a greater participation of the private sector contractors, thereby stimulating the economy; and (c) Encouraging greater participation by local small contractors and subcontractors in county government construction projects will also increase economic growth and vitality throughout the state. 30-11-702. Definitions. As used in this part 7, unless the context otherwise requires: (1) "Construction" means the process of building, altering, repairing, improving, demolishing, or renovating any public structure, building, road, bridge, waste treatment facility, water collection and treatment facility, or any other public improvements of any kind to any public real property. "Construction" includes capital construction, controlled maintenance, and design build contracts. (2) "Contract" means any type of agreement, regardless of what it may be called, for the procurement of county government construction projects. (3) "County" means a county, a home rule county, or any agency, department, division, board, bureau, commission, institution, or authority thereof that is a budgetary unit exercising contracting authority or discretion. 30-11-703. Competitive bidding process. (1) A county government shall advertise for competitive bidding all county government construction projects that are reasonably expected to cost or exceed one hundred thousand dollars. Competitive bidding may include competitive sealed bidding, design-build proposals, construction manager general contractor proposals, or any other form of competitive contracting method that the county chooses. To determine the expected cost of a county government construction project, the county may refer to current cost data information from the Colorado department of transportation or data from any North American supplier of construction cost information used in the private sector. (2) A competitive bidding process is not required when: (a) The county does not receive any bids, the county has received only one bid, or the responsible county officer has rejected all bids because they are nonresponsive, contain material bid errors, or are excessive in cost or time for the work to be done. The county shall include a written determination in the contract file of the basis for determining that any bid received is nonresponsive, contains material bid errors, or is excessive in cost or time for the work to be done. (b) The project is for an emergency condition because a threat to public health, welfare, or safety exists where timing and cost are critical to the functions of the county government to remedy such emergency. The county shall include a written determination of the basis for the emergency in the contract file. (3) The county government shall issue an invitation for bids and shall include a purchase description and all contractual terms and conditions applicable to the procurement. (4) Adequate public notice of the invitation for bids shall be given a reasonable time prior to the date set forth therein for the opening of bids. Such notice may include publication in a newspaper of general circulation. (5) Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and such other relevant information as may be specified by the county, together with the name of each bidder, shall be entered on a record, and the record shall be open to public inspection. After the time of the award, all bids and bid documents shall be open to public inspection in accordance with the provisions of sections 24-72-203 and 24-72-204, C.R.S. 30-11-704. Prohibition of dividing work of state-funded public project. A county government shall not divide the procurement of construction into two or more separate projects for the sole purpose of evading or attempting to evade the requirements of this part 7. SECTION 2. Applicability. This act applies to new contracts for which the invitation for bids or the request for proposals is issued on or after July 1, 2014. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.