FISCAL NOTE
FUND(S):
0210
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The fiscal impact on the Purchasing Division from raising the agency delegated threshold from $25,000 to $100,000 would be minimal; however, there are considerations to note: more procurement processing responsibilities at the agency level resulting in possibly more staffing at that level; less oversight on a substantial amount of state purchases (less transparency); currently Purchasing Division inspectors review a specified, yet small percentage of transactions (if this percentage remained constant, the volume of transactions would increase for the current two inspectors); potential of increased protest/litigation as a result of higher level of decentralized purchases; and lastly, mistakes that may be found through inspection could result in a larger amount of tax dollars spent unwisely.
Additionally, there are concerns with increasing the no-bid limit to $10,000, including potential increased costs for commodities and services due to the lack of research and competition. The actual increased costs to the state are unknown.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
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 |
Explanation of above estimates (including long-range effect):
N/A
Memorandum
No concerns with the suggested language change from "shall" to "may" regarding stringing.
Person submitting Fiscal Note: Diane Holley-Brown
Email Address: Diane.M.Holley@wv.gov