Summary:

 Senate Bill 206 (SB 206) relates to procurement, increasing minimum amounts for certain local public works projects and state public works projects; modifying payments for certain purchases; increasing small purchase amounts, adding the definition of "public-private partnership agreement" to the procurement code; adding new requirements, exclusions, exemptions and allowances; modifying the bid process; and increasing maximum terms for certain contracts. 

Legislation Overview:

 Senate Bill 206 (SB 206) amends several sections of NMSA 1978, as follows:

Section 13-1-66.1 NMSA 1978 is amended to define a "local public works project" as a project of a local public body that uses architectural or engineering services requiring professional services costing one hundred thousand dollars ($100,000) or more (previously fifty thousand dollars) or landscape architectural or surveying services requiring professional services costing ten thousand dollars ($10,000) or more, excluding applicable state and local gross receipts taxes.

The definition of “best obtainable price" means the price at which services or goods can be purchased that is most advantageous to the purchasing entity. 

The definition of "public-private partnership agreement" means an agreement between at least one public partner and one private partner in which the public partner accepts a private contribution to the research, development, design, construction, financing, implementation, operation or maintenance of any public asset or public benefit.

State agencies and local public bodies must provide up to two names for chief procurement officers.

A Chief Procurement Officer Certification Program must be maintained by the state purchasing agent.

Continuation Education units must be allowed for recertification purposes, and “continuing education units” are defined as any approved public procurement course or participation in the evaluation and scoring of a request for proposal that is for an entity other than the entity of the Chief Procurement Officer.

Exemption maximum amounts for certain purchases are increased from  ten thousand dollars ($10,000) to one hundred thousand dollars ($100,000).

The Early Childhood Education and Care Department is allowed to contract for child care services.

Exemptions are added for information technology enterprise services capital equipment and software contracts.

Contracts for digitizing state or federal records and for appraisals and surveys for purchasing real property are exempted.

Small purchase amounts excluded from central purchasing are increased from one thousand five hundred dollars ($1,500) to ten thousand dollars ($10,000).

Certain sole source contracts are excluded from central purchasing for agencies with a certified procurement officer, and such contracts are to be allowed for terms longer than one year.

Requirements are changed for the invitation for bids posting and publication process, and for  expenditure amounts requiring bids (from twenty thousand to one hundred thousand).

The Act provides for modification or withdrawal notices of bids containing mistakes, and requires  that professional services contracts be reviewed by the State Purchasing Agent or a General Services Department designee.

Responsible individuals are identified for management and negotiations for certain qualifications-based contracts.

The amount for certain purchases by a central purchasing agent is increased from sixty thousand ($60,000) to one hundred thousand ($100,000).

State agencies or local public bodies are allowed to issue certain direct purchase orders.

At least fifteen days before it awards a sole source contract (previously thirty days), the State Purchasing Agent must post notice of its intent to award the contract on its website.
When required by the State Purchasing Agent or a Central Purchasing Office, a prospective contractor must submit cost or pricing data when the contract is expected to exceed sixty thousand dollars ($60,000) (previously twenty-five thousand) and is to be awarded by a competitive sealed bid or request for proposals.

Maximum terms for professional services contracts are increased from four to eight years.
 

Current Law:

 The current minimum amount for certain local public works projects and state public works projects is fifty-thousand ($50,000); the exemption maximum amount for certain purchases is ten thousand ($10,000); the amount for small purchases excluded from central purchasing is one thousand five hundred dollars ($1,500); purchases not exceeding ten thousand dollars ($10,000) are exempted, without reference to software licenses or maintenance agreements; there is no definition of "public-private partnership agreement" in the procurement code; and various new requirements, exclusions, exemptions and allowances, and modified bid process as proposed are not in place. The maximum term for certain contracts is four years. 

Amendments:

 Amended February 25, 2025 in STBTC

STBTCa/SB 206: The Senate Tax, Business and Transportation Committee amendment to Senate Bill 206 makes the following changes:

1. On page 2, strike line 17 and strike line 18 through the semicolon. 
2. On page 3, line 2, strike "or" and insert in lieu thereof "services, including". 
3. On page 3, lines 3 and 4, remove the brackets and the line through "fifty thousand dollars ($50,000)" and strike the underscored language. 
4. On page 4, lines 9 and 10, remove the brackets and the line through "fifty thousand dollars ($50,000)" and strike the underscored language. 
5. On page 4, line 25, after "officers", insert a period and strike the remainder of the line and on page 5, strike lines 1 and 2. 
6. On page 5, line 23, strike "the" and strike lines 24 and 25, and on page 6, strike line 1 and insert in lieu thereof "a procurement approved by the purchasing division of the general services department.". 
7. On page 6, line 18, after "Code", insert ", except for the provisions provided for in Sections 13-1-190 through 13-1-199 NMSA 1978,". 8. On page 10, line 7, after "electronic", strike the remainder of the line and strike line 8 up to the semicolon. 
9. On page 14, line 16, remove the brackets and the line through "ten" and strike the underscored language. 
10. On page 23, lines 1 and 2, remove the brackets and the line through "twenty-five thousand dollars ($25,000)" and on line 2, strike the remainder of the line, strike line 3 in its entirety and strike line 4 up to the period. 
11. On page 23, line 23, after "renewals", insert ", except for public-private partnership agreements".