OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

SB-454

AN ACT INCREASING THE TRANSPARENCY OF GENERAL BIDS FOR STATE CONTRACTS.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Dept. of Administrative Services

GF - Cost

575,000

300,000

State Comptroller - Fringe Benefits1

GF - Cost

82,485

109,980

Municipal Impact: None

Explanation

The bill makes several changes concerning the awarding of subcontracts for public works projects that are subject to the state's competitive bidding laws. The Department of Administrative Services (DAS) would need to hire a consultant at up to $100,000 in FY 15 to re-design bidding systems, revise templates, bid forms, manuals, and reporting systems.

To implement the revised bid award requirements, DAS would need to make improvements to their IT systems that track subcontractors and second tier contracting data as their current IT system is not capable of tracking this data. It is anticipated that improvements to this system would cost $250,000 in FY 15.

In addition, it is estimated that DAS would require four positions at a cost of $307,485 ($225,000 in salary and $82,485 in fringe benefits) in FY 15 to operate with the expanded requirements. The new positions would collect and review listed subcontracts and lower tier subcontracts, handle increased bid protests, scope reviews of bid packages, and manage requests from contractors or subcontractors for substitutions of subcontractor or lower tier subcontractors who are unable to perform their duties.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 36.66% of payroll in FY 15 and FY 16.