AN ACT CONCERNING CERTAIN AUTHORITY AND DUTIES OF THE DEPARTMENT OF ADMINISTRATIVE SERVICES.

AN ACT CONCERNING CERTAIN AUTHORITY AND DUTIES OF THE DEPARTMENT OF ADMINISTRATIVE SERVICES.

1. allows Department of Administrative Services (DAS) to serve as the legal representative of more small estates for the purpose of collecting debts owed to the state;

2. requires the DAS commissioner to revoke or deny the prequalification of a contractor or substantial subcontractor based on the acts of his or her principal or key personnel;

3. requires that notice of most state public works contracts be posted on the state contracting portal;

4. extends to state agencies the authority to complete evaluations of subcontractors and substantial subcontractors by relying on evaluations completed by general contractors;

5. eliminates a requirement for contractors to include a copy of their prequalification certificate with their bids on all public works contracts, other than Department of Transportation (DOT) contracts, and instead requires them to provide the certificate when the public agency soliciting the bids requests it;

6. specifies that subcontractors do not have to prequalify with DAS before performing work on highway, bridge, or construction projects administered by DOT;

7. clarifies that subcontractors must be prequalified by DAS before they perform work on any non-DOT-administered public works projects, instead of just public works building projects, if their work and the total contract are each valued at $ 500,000 or more; and

8. makes technical and conforming changes.

*House Amendment “A” expands the bill's provisions on the state contracting portal and prequalification certificates to apply to any public agency, not only state and municipal agencies.

The bill increases, from $ 20,000 to $ 40,000, the aggregate value of estates for which DAS may petition the probate court for appointment as legal representative. This is the threshold for filing an affidavit in lieu of administration in probate court. By law, DAS files these petitions when (1) the state has a claim against the estate for support or care provided to the decedent; (2) the amount of the claim, together with other specified claims, equals or exceeds the value of the estate; and (3) the value of the assets does not exceed $ 20,000.

The bill allows the DAS commissioner to refuse to issue or renew a prequalification certificate if a contractor's or substantial subcontractor's principal or key staff member is convicted of, or admits to, acts or omissions that could have reasonably resulted in the contractor's or substantial subcontractor's disqualification.

It requires the commissioner to deny or revoke a contractor's or substantial subcontractor's prequalification if she finds that a principal or key member of their staff, within the past five years, (1) included a materially false statement in a prequalification application, update statement (i. e. , statement submitted when renewing or upgrading a prequalification certificate), or update bid statement; (2) was convicted of a crime, entered a plea of guilty or nolo contendere (no contest) for, or admitted to, a crime related to getting or performing a construction contract; or (3) engaged in some other fraud to get or stay prequalified. By law, the commissioner can deny or revoke the prequalification if the contractor or substantial contractor committed these acts.

The bill also requires the commissioner to deny or revoke the prequalification of a contractor or substantial subcontractor who pleads guilty or no contest to a crime related to getting or performing a construction contract.

The bill eliminates a requirement for (1) the DAS commissioner to place notices of bid solicitation for contracts in excess of $ 50,000 in two publications, including one newspaper, and on the Internet and (2) state public works contracts valued at $ 500,000, other than those administered by DOT, to be published in newspapers. It instead requires that the notices be posted on the state contracting portal.

It requires public agencies that receive state funds for all or a portion of public work projects valued at $ 500,000 or more to post notices of the contracts, other than DOT-administered contracts, on the state contracting portal. These public agencies must include the qualifications necessary for the contract in the notice. By law, DOT has its own prequalification program.

Under the bill, “public agency” means all state and local governmental agencies, departments, institutions, bureaus, boards, and commissions, including executive, administrative, and legislative offices, and the administrative functions of the judicial branch and the Division of Criminal Justice.

By law, public agencies must evaluate the performance of contractors and subcontractors working on public projects. Any agency that fails to file a completed evaluation with the DAS commissioner within 70 days after the project is completed is ineligible for future state funds to complete such projects.

The bill permits all public agencies, instead of just political subdivisions, to evaluate a subcontractor's or substantial subcontractor's performance by relying on the general contractor's evaluation of them. It absolves general contractors of liability for any harm an evaluation causes a subcontractor or substantial subcontractor. However, the general contractor may be liable for willful, wanton, or reckless actions related to the evaluations.

Consequences for Agencies that Accept Bids Without Prequalification Certificates

Bids submitted without prequalification certificates are deemed invalid and any agency that accepts a bid without the certificate may be ineligible for state funds.