Revision: Jan. 15, 2019, 12:32 p.m.
HB 534-FN - AS INTRODUCED
HOUSE BILL 534-FN
SPONSORS: Rep. Graham, Hills. 7; Rep. Eaton, Ches. 3; Sen. Giuda, Dist 2; Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3
COMMITTEE: Public Works and Highways
This bill expands the scope of projects that are exempt from the department of administrative services competitive bidding requirement.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
(b) Projects for the department of fish and game, the adjutant general's department, the department of transportation, and the department of natural and cultural resources whose estimated total cost is not more than [$250,000] $500,000 or for projects that cannot be accepted by the department of administrative services, division of public works. Such projects may be done on a force account basis, by contracts awarded through competitive bidding, by short term rental of construction equipment, or by any combination of these methods. These departments are authorized to rent construction equipment for periods not exceeding 6 months at rates the departments deem competitive through the use of quotes or bids.
HB 534-FN- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ ] Education [ X ] Highway [ X ] Other
This bill would raise the threshold, from $250,000 to $500,000, for projects that are exempt from the competitive bid requirement of the Department of Administrative Services, Division of Public Works (DPW). The following departments are affected and would realize reduced expenditures: Fish and Game, Adjutant General, Transportation, and Natural and Cultural Resources. Projects that cannot be accepted by the DPW are also exempted.
DAS indicates DPW derives approximately thirty percent of its total funding from fees charged to these agencies and would therefore lose that funding source. This funding loss would impact the ability of the DPW to perform its role in enforcing Statewide building standards and codes, designing new building or building improvements, and monitoring the construction of these building improvements to ensure Statewide standards are adhered to during the construction phase. DPW would require additional general funds to replace the lost funding stream and maintain these functions at current levels. There is no provision to replace these funds in the DAS budget with general funds.
In FY 2018, the total project value for these named agencies was $7,292,335. DPW fees are approximately 6 percent of this value, or $437,540 ($7,292,335 x .06 = $437,540). DPW total funding from fees in FY 2018 was $957,358. Fifty percent of this funding is estimated to come from the fees charged to these agencies, or $478,679. Based on these two calculations, $450,000 represents a reasonable estimate of potential loss of funding from fees on 2018 dollars. An inflation factor of 5% per year would yield a potential loss of funding of $496,125 in FY 2020, $520,931 in FY 2021, $546,978 in FY 2022, and $574,327 in FY 2023.
Department of Administrative Services