You asked whether a small, local company can bid on state agency or university supply contracts and if so, the procedure for doing so. You also asked if an agency or university may use such a company to fill an order outside of the competitive bidding process if it runs short on a particular supply and needs a quick response. You referenced a paper company.

SUMMARY

Connecticut law requires most supply contracts to be based on competitive bidding or negotiation. This requirement applies to state agencies as well as constituent units of higher education. All opportunities are open to the public and any company may respond to an invitation to bid or request for proposal (RFP).

A small, local company may also be eligible to participate in the state set-aside program for small contractors and minority business enterprises (MBEs), which the Department of Administrative Services (DAS) administers through its Office of Supplier Diversity. Under this program, small contractors and minority business enterprises are awarded 25% of agency contracts, unless the threshold is waived.

The law authorizes the DAS commissioner or a constituent unit's chief executive officer to waive competitive bidding or negotiation requirements under limited circumstances, but it is unlikely that contracts for basic commodities like paper would qualify. Such waivers are generally granted for certain purchases of $ 10,000 or less, or, because an unanticipated emergency exists.

COMPETITIVE BIDDING

State law requires most purchases of, and contracts for, supplies, materials, equipment, and contractual services to be based, when possible, on competitive bidding or negotiation. For executive branch agencies, the DAS commissioner must solicit competitive bids or proposals (CGS § 4a-57). For state constituent units of higher education, the school's chief executive officer must do the same (CGS § 10a-151b). Bidding opportunities for supply and service contracts are therefore open to the public (only contractors on certain transportation (CGS § 13b-20e) and public works construction projects must prequalify (CGS § 4a-100)). The awarding authority awards the contract to the “lowest responsible qualified bidder,” for an invitation to bid, or the “most advantageous proposer,” for a RFP.

For information about contracting opportunities with state agencies or constituent units, vendors can visit the “state contracting portal,” hosted by DAS, or the schools' websites (see HYPERLINKS for examples). The state contracting portal provides current invitations to bid and RFPs by agency, as well as the results of those that have closed. In addition, the site has a notification feature whereby DAS sends daily e-mails alerting subscribers to newly-posted opportunities.

Set-Aside Program

Under the state set-aside program, state agencies and political subdivisions, other than municipalities, must set aside 25% of total value of all contracts they let for construction, goods, and services each year for certified small contractors, and reserve 25% of this amount for certified MBEs (CGS § 4a-60g). The program also applies to state constituent units of higher education.

To participate, a vendor must register with DAS. Upon verification of a business' qualifications, the department issues a certification. A contractor that is certified to bid on set-aside contracts is not precluded from bidding on other state contracts. Like most state contracts, set-aside awards are based competitive bidding procedures.

A “small contractor” is a contractor, subcontractor, manufacturer, or service company that has (1) had the same ownership or management, and maintained its principal place of business in Connecticut, for at least one year before applying, (2) grossed revenues of $ 10 million or less during its most recent fiscal year, and (3) at least 51% ownership held by someone with authority over daily operations, management, and policies and who receives beneficial interests (CGS § 4a-60g (1), as amended by PA 07-4, June Special Session).

WAIVERS FROM COMPETITIVE BIDDING

The DAS commissioner or a chief executive officer of a state constituent unit of higher education may waive competitive bidding or negotiation requirements under specified circumstances. Both may do so if an emergency exists because of unusual trade or market conditions or due to extraordinary conditions that could not be foreseen (CGS §§ 4a-58 (b) and 10a-151b (c)). The commissioner may do so for minor nonrecurring and emergency purchases of $ 10,000 or less (CGS §§ 4a-57 (b)). A chief executive officer may similarly waive the requirement for minor purchases of $ 10,000 or less. The requirements do not apply to certain “non-competitive purchases” by executive branch agencies such as subscriptions, dues, fees, some public utility services, postage, and licenses other than software licenses (DAS, General Letter Number 71).

We spoke with procurement representatives at DAS, UConn, and Eastern Connecticut State University who indicated that purchases of, and contracts for, supplies such as paper are based on a competitive process. It would be highly unlikely for them to face an emergency or unforeseen shortage that would warrant circumventing this process to fill an order quickly.

HYPERLINKS

State Contracting Portal, http: //www. das. state. ct. us/Purchase/Portal/Portal_Home. asp, last visited July 26, 2007.

University of Connecticut Purchasing Department, http: //www. purchasing. uconn. edu/currentbid/currentbid. html, last visited July 26, 2007.

Eastern Connecticut State University Bid Information, http: //www. easternct. edu/depts/fiscal/bidlist. htm, last visited July 26, 2007.

Department of Administrative Services, General Letter Number 71, http: //www. das. state. ct. us/Purchase/Info/GL_71. pdf, last visited July 26, 2007.

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