NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 15-1046
      
      
      BY REPRESENTATIVE(S) Moreno, Esgar, Fields, Melton, Mitsch Bush,
      Salazar, Tyler, Williams, Winter, Young;
      also SENATOR(S) Scott, Martinez Humenik, Todd.
      
      
      Concerning authorization for the executive director of the
           department of transportation to waive department project
           cost estimate-based statutory contract amount limits
           when awarding a highway project contract.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1. Legislative declaration. (1)  The general assembly
      hereby finds and declares that:
      
           (a)  It is the responsibility of state agencies to find and promote more
      efficient ways to use taxpayer dollars;
      
           (b)  The department of transportation is implementing several
      efficiency processes as part of a comprehensive internal review of its
      project cost estimating process; 
      
           (c)  This act reflects the department's ongoing efforts to provide
      transparent administrative processes for better use of taxpayer dollars;
      
           (d)  A variety of factors, including labor costs, material costs, and
      economic variables, influence cost estimates for department construction
      projects;
      
           (e)  Under current law, if there are fewer than three bidders for a
      department construction project, the department cannot make an award if
      the bids exceed statutory limits, resulting in longer project timelines and
      additional fiscal impacts to the department;
      
           (f)  These statutory requirements for awarding contracts when there
      are fewer than three bidders are some of the most stringent in the country; 
      
           (g)  Under specific circumstances, this act allows the department to
      conduct a thorough bid analysis to evaluate the low bid for a construction
      project when fewer than three bids are received; and
      
           (h)  It is therefore necessary, appropriate, and in the best interest of
      the state to enact this act and thereby create an efficient and transparent
      process to allow more construction projects to be completed throughout the
      state.
      
           SECTION 2.  In Colorado Revised Statutes, 43-1-113, amend (16)
      as follows:
      
           43-1-113.  Funds - budgets - fiscal year - reports and
      publications - repeal. (16) (a)  If there are fewer than three bidders on a
      design bid build highway project, no award shall be made if the award is
      more than ten percent over the estimate of the department of transportation
      on the project; except that, if the estimate of the department on the project
      is less than one million dollars and there are fewer than three bidders, the
      executive director may make an award of more than ten percent, but less
      than twenty-five percent, over the estimate of the department to the low
      responsible bidder, as defined in section 24-103-101 (3), C.R.S.
      
           (b)  Repealed.
      
           (c) (I)  Notwithstanding the limitations set forth in
      paragraph (a) of this subsection (16), the executive director may
      make an award to the low responsible bidder regardless of the
      estimate of the department if the executive director determines
      in writing that it is in the best financial, economic, or other
      interest of the state to do so. The written determination must be
      included in the contract file and made publicly available by
      posting on the department's web site.
      
           (II)  In its annual presentation to the joint committees of
      reference of the general assembly that have jurisdiction over
      transportation required by section 2-7-203, C.R.S., the department
      shall identify each project for which the executive director made
      an award pursuant to subparagraph (I) of this paragraph (c) and
      shall explain the reasons for making the award and estimate the
      amount of cost savings achieved by making the award.
      
           (III)  This paragraph (c) is repealed, effective July 1, 2018.
      
           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.
      
      
      
      
      ________________________________________________________
      Dickey Lee Hullinghorst                Bill L. Cadman
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO