You want to know when the law requires state construction contracts to go through a public bidding process. You also asked about a project that the Connecticut Health and Educational Facilities Authority (CHEFA) financed.

SUMMARY

As a general rule, the law requires the commissioner of the Department of Public Works (DPW), Joint Committee on Legislative Management (joint committee), and state higher education entities to publicly advertise contracts estimated to cost more than $ 500,000. They must award them to the lowest, responsible, qualified bidder on the basis of competitive bids. The law covers jobs for the construction, reconstruction, alteration, remodeling, repair, or demolition of any state building.

The law exempts certain types of projects from competitive bidding requirements. They are (1) those that will not reach the specified dollar threshold, (2) those that are initiated because emergency conditions exist, (3) fast-track projects, and (4) design-build projects.

A CHEFA-financed project generally need not go through a public bidding process unless the borrower is a public entity. CHEFA issues tax-exempt bonds on behalf of nonprofit healthcare institutions, state higher education entities, and long-term care facilities, among others. While CHEFA is a quasi-public agency, its bonds are not financed with state funds. Rather, they are sold on the market to private institutional and retail investors. Thus, Connecticut's public bidding laws would not govern a borrower such as a private hospital.

ESTIMATED COST DOES NOT MEET THRESHOLD

Most state agencies must obtain approval from the public works commissioner before entering into a contract estimated to cost less than $ 500,000, or $ 2,000,000 for state higher education entities. (The joint committee and UCONN supervise and control their own buildings and need not do so. ) Any repairs, alterations, or additions resulting from the contract must conform to DPW's guidelines and procedures for agency-administered projects (CGS § 4b-52 (a) (1)).

EMERGENCY CONDITIONS EXIST

If the commissioner or joint committee declares that an emergency condition exists at a state facility that affects public safety or the conduct of state business, either may employ the assistance necessary to rectify the situation without inviting public bids. If the project will cost more than $ 500,000, the commissioner, but not the joint committee, must (1) obtain written consent from the governor and (2) certify to the joint committee that the project rises to such a level as to necessitate the emergency action (CGS § 4b-52 (c)).

FAST-TRACK PROJECTS

Under the fast-track process, the commissioner refers to a list of contractors who have experience completing jobs of the size and type to qualify for the project. Next he makes a short list of at least three contractors and invites them to submit proposals. A selection panel reviews the proposals, interviews the contractors, and assigns points based on the information it receives from each contractor. The commissioner awards the contract to the contractor with the most points (CGS § 4b-91). (UCONN can also expedite projects that it undertakes and controls. These projects include most, if not all, university buildings or structures, including dormitories, classrooms, athletic facilities, laboratories, storage, and healthcare facilities. )

DESIGN-BUILD PROJECTS

Under the design-build process, the commissioner may designate one developer to complete all phases of a project. The law covers projects for (1) a new facility to fulfill the substantial space needs of an agency, (2) the installation of mechanical or electrical equipment in existing facilities, or (3) the demolition of a state building. As with the fast-track process, developers are invited to submit proposals. The commissioner designates a panel to screen all incoming proposals and establish a list of qualified bidders to be interviewed. He then designates a separate panel to interview those bidders and submit to him a list of recommended contractors. Finally, he selects a contractor from that list (CGS § 4b-24 (4)).

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