OLR Bill Analysis

sHB 5373

AN ACT EXPANDING CERTAIN REVERSE AUCTION AUTHORITY TO THE PURCHASE OF CERTAIN SERVICES BY TOWNS, SCHOOL DISTRICTS AND STATE AGENCIES.

SUMMARY:

This bill expands the use of reverse auctions by state agencies, political subdivisions of the state, and school districts. By law, a “reverse auction” is an on-line bidding process in which qualified bidders and proposers anonymously submit bids or proposals to provide goods or supplies pursuant to an invitation to bid or request for proposals.

With two exceptions, the bill allows entities to use these auctions to award service contracts that will be performed by someone other than an employee of the contracting entity. The exceptions are for construction and construction management services. However, these services are not included in the definition of “services. ” Under the bill, “services” mean (1) laundry and cleaning, pest control, janitorial, and security services; (2) advertising, photostating, and mimeographing; and (3) the rental, repair, or maintenance of equipment, machinery, or other personal property owned by the state, political subdivision, or school district.

By law, state agencies, political subdivisions of the state, and school districts may use a reverse auction to award contracts for goods and supplies if they determine that doing so would be to their advantage and ensure a competitive contract award. Contracting agencies may contract with a third party to prepare and manage the reverse auction.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Government Administration and Elections Committee

Joint Favorable Substitute