Summary:

 Senate Bill 408 (SB 408):  This legislation amends Section 13-1-154.1 NMSA 1978 to increase contract dollar limits and other parameters that apply when state agencies and local public bodies use “on-call” (indefinite quantity) contracts for architectural/engineering (A/E) services and construction.  

Legislation Overview:

 Senate Bill 408 (SB 408):  These proposed revisions expand the dollar-value caps and time frames for indefinite quantity contracting, providing agencies greater flexibility to procure repeated A/E and construction services while retaining the required competitive selection and transparency measures.
1. Architectural & Engineering Services (Subsection A and Subsection D (1))
a.	Single Contract Limit -
Increases the maximum value of any single A/E services contract (including renewals) from $650,000 to $2,000,000.
b.	Annualized Limit for a Single Contractor
Under Subsection (A), the total amount of multiple contracts (and all renewals) for one contractor continues at $7,500,000 over four years within the same procurement.
Under Subsection (D)(1), the cumulative total of all indefinite quantity contracts awarded pursuant to this section to one firm cannot exceed $15,000,000 in any four-year period (raised from $7,500,000).
2. Construction Services (Subsection B and Subsection D(2))
a.	Maximum Indefinite Quantity Contract Awards
Increases the total award ceiling (including renewals) for all indefinite quantity construction contracts from $12,500,000 over three years to $30,000,000 over a period of up to ten years.
b.	Purchase Order Limit
Raises the limit on any single purchase order under such a contract from $4,000,000 to $7,000,000.
c.	Annualized Limit for a Single Contractor
Subsection (D)(2) raises the total that a single firm may be awarded across all indefinite quantity construction contracts to $30,000,000 over ten years (up from $12,500,000 over three years).
3. Reporting Requirement (Subsection F)
a.	State agencies and local public bodies (excluding legislative or judicial agencies) must report the aggregate amount of each contractor’s multiple source contracts under this section to:
The Legislative Finance Committee (annually), and
The purchasing division of the General Services Department (at least quarterly).
 

Current Law:

 13-1-154.1. Multiple source contracts; architectural and engineering 
services contracts; indefinite quantity construction contracts. 
A. A state agency or local public body may procure multiple architectural or 
engineering services contracts for multiple projects under a single qualifications-based 
request for proposals; provided that the total amount of multiple contracts and all 
renewals for a single contractor does not exceed seven million five hundred thousand 
dollars ($7,500,000) over four years and that a single contract, including any renewals, 
does not exceed six hundred fifty thousand dollars ($650,000). 
B. A state agency or local public body may procure multiple indefinite quantity 
construction contracts pursuant to a price agreement for multiple projects under a single 
request for proposals; provided that the total amount of a contract and all renewals does 
not exceed twelve million five hundred thousand dollars ($12,500,000) over three years 
and the contract provides that any one purchase order under the contract may not 
exceed four million dollars ($4,000,000). 
C. A state agency or local public body may make procurements in accordance with 
the provisions of Subsection A or B of this section if: 
(1) 
the advertisement and request for proposals states that multiple contracts 
may or will be awarded, states the number of contracts that may or will be awarded and 
describes the services or construction to be performed under each contract; 
(2) 
there is a single selection process for all of the multiple contracts, except 
that for each contract there may be a separate final list and a separate negotiation of 
contract terms; and 
(3) 
each of the multiple contracts for architectural or engineering services has 
a term not exceeding four years, or for construction, has a term not exceeding three 
years, each including all extensions and renewals. 
D. A contract to be awarded pursuant to this section to a firm that is currently 
performing under a contract issued pursuant to this section shall not cause the total 
amount of all contracts issued pursuant to this section to that firm to exceed: 
(1) 
seven million five hundred thousand dollars ($7,500,000) in any four-year 
period for architectural or engineering services; or 
(2) 
twelve million five hundred thousand dollars ($12,500,000) in any three
year period for construction. 
E. Procurement pursuant to this section is subject to the limitations of Sections 13
1-150 through 13-1-154 NMSA 1978. 
F. A state agency and a local public body, not including an agency of the legislative 
or judicial branch of state government, shall report to the legislative finance committee 
on an annual basis and to the purchasing division of the general services department 
on, at minimum, a quarterly basis the aggregate amount of contracts for each contractor 
and the corresponding amounts to be spent under each multiple source contract 
pursuant to this section.  The general services department may promulgate rules 
regarding reporting to the department pursuant to this subsection.