Date Requested:January 26, 2012
Time Requested:02:00 PM
Agency: Administration
CBD Number: Version: Bill Number: Resolution Number:
2012R1099 Introduced SB36
CBD Subject: GOVERNMENT CONSTRUCTION CONTRACTS
FUND(S)
Various state funds
Sources of Revenue
General Fund,Special Fund,Other Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    This bill requires all bidders on a contruction contract to submit a list of subcontractors, along with their addresses and license numbers, within two hours of the close of the bids for review prior to awarding a construction contract. Failure to submit the subcontractors list within the two hours would result in the disqualification of the bid. There would be no cost to the state as long as all vendors complied with the requirement. However, if a vendor failed to meet the two hour deadline then they would be disqualified and the state would be forced to move to the second lowest responsible vendor. The second bidder would be higher and this would increase costs to the state. The increased cost to the state is unknown as it is impossible to know what the difference in costs would be and the cost difference would vary from project to project.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The bill does not have provisions for receiving the same list of subcontractors from subsequent low bidders. If the second or subsequent vendors are not the lowest bidder at the bid opening, then they may decide that submitting their subcontractor's list is not worthwhile. In the event that the subsequent low bidders do not submit the list of subcontractors, then the project would be required to be rebid.
    
    The bill should be modified to clarify that the two hour requirement is when the subcontractor's list is received by the agency soliciting the request for quotations.
    
    Due to the placement of this language in the W.Va. Code ยง5-22, it would apply to all government agencies.
    
    This requirement will result in an increased effort from the Purchasing Division to enforce this law.


Memorandum
Person submitting Fiscal Note:
donna lipscomb
Email Address:
donna.m.lipscomb@wv.gov