Summary:

 House Bill 456 (HB 456):  This legislation raises the monetary thresholds for indefinite-quantity (on-call) architectural/engineering and construction contracts in New Mexico, granting agencies greater leeway to consolidate multiple projects under a single contract. At the same time, it maintains reporting requirements and limits intended to ensure accountability and transparency in the procurement process. 

Legislation Overview:

 House Bill 456 (HB 456):  The bill amends Section 13-1-154.1 NMSA 1978 of the Procurement Code to increase the upper dollar limits on certain types of indefinite-quantity contracts (also called “on-call” or “task-order” contracts) used by state agencies and local public bodies for:
a.	Architectural and Engineering (A/E) services, and
b.	Construction projects.
These contract types allow agencies to award multiple projects to a contractor, subject to maximum dollar amounts and time limits. The bill changes both the per-contract and aggregate monetary caps, as well as time periods during which these caps apply.
The following are considered key changes:
a.	Architectural and Engineering Services
Single A/E Contract Limit - 
•	Old Law: A single A/E contract, including renewals, was capped at $650,000.
•	New Law: A single A/E contract, including renewals, is capped at $2,000,000.
b.	Aggregate Limit for Multiple A/E Contracts Under One RFP
•	Old Law: The total amount for multiple A/E contracts with one contractor (including renewals) could not exceed $7.5 million over 4 years.
•	New Law: Subsection A still references the $7.5 million over 4 years.
c.	Subsection D was updated to state that no new contract award shall cause the total amount of all active indefinite-quantity A/E contracts for that same firm to exceed $15 million in any 4-year period.
The interplay between Subsection A and Subsection D effectively raises the overall ceiling for a contractor when aggregated across multiple indefinite-quantity procurements, while Subsection A continues to limit the value of multiple contracts under a single RFP process to $7.5 million.
a.	Indefinite Quantity Construction Contracts
b.	Aggregate Limit Across All Contracts
•	Old Law: Total amount of a construction indefinite-quantity contract (plus all renewals) was capped at $12.5 million over 3 years.
•	New Law: Total amount of all such construction contracts (and their renewals) cannot exceed $30 million in a period of no more than 10 years.
Limit on Individual Purchase Orders
•	Old Law: A single purchase order (work order) under the contract could not exceed $4 million.
•	New Law: A single purchase order may not exceed $7 million.
Overall Aggregate for a Single Contractor
•	Old Law: A firm could not exceed $12.5 million in construction contracts in any 3-year period under this statute.
•	New Law: The firm may not exceed $30 million in any 10-year period.
Timeframes and Reporting - Contract Duration
a.	Limits the term of the A/E contract to four years and the construction contract to three years (including renewals). These basic duration caps remain from earlier provisions.
b.	The law also increases how much can be spent under those contracts within those time frames.
Reporting Requirements
a.	Agencies must continue to report annually to the Legislative Finance Committee (LFC) and at least quarterly to the General Services Department (GSD) the total amounts contracted and the amounts spent under these indefinite-quantity contracts.