SB 61/a PROCUREMENT CONTRACTS LIMIT INCREASE

Sen David M Gallegos

Actions: [1] SCC/SHPAC/SJC-SCC [2]germane-SHPAC- DP/a-SJC

Scheduled: Not Scheduled

 Senate Bill 61 (SB 61) This bill outlines specific limits, conditions, and reporting requirements for procurement contracts related to architectural and engineering services as well as construction in the state of New Mexico. 

 Senate Bill 61 (SB 61) Increased Limits on Contracts:  For architectural or engineering services contracts, a state agency or local public body can procure multiple contracts for multiple projects under a single request for proposals.  The total amount of multiple contracts and renewals for a single contractor should not exceed $15,000,000 over four years, and a single contract (including renewals) should not exceed $2,000,000.  For indefinite quantity construction contracts, a state agency or local public body can procure multiple contracts under a single request for proposals.  The total amount of a contract and all renewals should not exceed $30,000,000 over three years, and any one purchase order under the contract may not exceed $10,000,000. 
Procurement Conditions:  The advertisement and request for proposals should specify the possibility of multiple contracts, the number of contracts, and describe the services or construction for each contract.  There should be a single selection process for all multiple contracts, with separate final lists and negotiations for each contract.  Each contract for architectural or engineering services should not exceed four years, and for construction, the term should not exceed three years, including extensions and renewals.  Reporting Requirements:  State agencies and local public bodies (excluding legislative or judicial branches) must report annually to the legislative finance committee and quarterly to the purchasing division of the general services department on the aggregate number of contracts for each contractor and corresponding amounts under each multiple-source contract.  The effective date of the provisions is July 1, 2024.
 

 Amended January 24, 2024

SHAPACa//SB 61:   The bill is related to procurement, specifically addressing the total amount limit on contracts for the procurement of architectural and engineering services and construction by state agencies and local public bodies.
Changes to Contract Amount Limits:
Architectural and Engineering Services Contracts:
•	The total amount limit for multiple contracts and renewals for a single contractor is increased from $7,500,000 to $15,000,000.
•	The limit for a single contract, including renewals, is increased from $650,000 to $2,000,000.
Indefinite Quantity Construction Contracts:
•	The total amount limit for a contract and all renewals is increased from $12,500,000 to $30,000,000.
•	The limit for any one purchase order under a contract is increased from $4,000,000 to $10,000,000.
Procurement Process:
•	State agencies or local public bodies can procure multiple architectural or engineering services contracts for multiple projects under a single qualifications-based request for proposals.
•	Similar provisions exist for indefinite quantity construction contracts.
•	The selection process and contract negotiation are streamlined for efficiency.
•	Contracts for architectural or engineering services have a term not exceeding four years, and for construction, the term is not exceeding three years, including all extensions and renewals.
Reporting Requirements:
•	State agencies and local public bodies must report the aggregate amount of contracts for each contractor annually to the legislative finance committee and the purchasing division of the general services department.
Annual Adjustment:
•	There is an annual adjustment to the contract amount limits based on changes to the Producer Price Index (PPI) for architectural, engineering, and related services, as well as the PPI for final demand construction.
•	Definitions for "producer price index by industry for architectural, engineering and related services" and "producer price index by commodity for final demand construction" are provided.
The effective date of the provisions of this act is July 1, 202.