Item 3: Action on Non-Unanimous IGR Positions

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HB 2867 Relating Clause: Relating to public contracting; declaring an emergency. Title: Requires contracting agency to establish measurable standards to assess quality of contractor's performance under public contract and specify consequences for failing to meet standards. Authorizes Secretary of State and local contracting agency to audit public contracts. Establishes certain standards for audit. Prohibits contracting agency from contracting for contract administration, except for consultant to train contracting agency employees in skills necessary for administration. Prohibits employee of contracting agency to seek or obtain employment with contractor in certain circumstances. Requires contractor to offer employment to employee of contracting agency if public contract displaces employee. Requires contracting agency to demonstrate with cost analysis or by other means that cost of providing goods or performing service with contracting agency's own personnel or resources is greater than cost of procuring goods or services from contractor. Specifies additional criteria for contracting agency to use in determining contractor's responsibility and for prequalifying contractor. Declares emergency, effective on passage. Sponsored by: COMMITTEE ON BUSINESS AND LABOR URL:http://www.leg.state.or.us/09reg/measpdf/hb2800.dir/hb2867.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Mike Penwell Mike Penwell CS-FAC 3/10/2009 Pri 3 Yes YesVIII. B Oppose Comments: In general, this bill is an unnecessary rewrite of ORS 279 relating to public contracting. The intention of the bill seems laudable: establish and enforce quality standards, provide for the auditing of a contractor's performance, provide for the most cost-effective means of procuring goods and services (either by a contractor or by the contracting agency), and cleaning up and/or clarifying language related to determination of responsible bidders and prequalification of bidders. But all of these tools are already available to contracting agencies under ORS 279. This bill adds layers of bureaucracy and cost to public purchasing without a substantial improvement in quality control, oversight, and/or cost control. In fact it's so prescriptive, it may actually take away some of the strategies currently available to contracting agencies for accomplishing the goals the bill is trying to achieve. For specific detailed responses to sections of this bill, see Paul Klope's comments. ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Jenifer Willer Jenifer Willer PWE 3/12/2009 Pri 3 Yes YesVIII. B Oppose Comments: See comments by Paul, Mike and Lauren ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Paul Klope PWE 3/5/2009 Pri 3 Yes YesVIII. B Oppose Comments: This bill is a collection of proposed amendments to various parts of contract law. Following is a brief summary of each amendment that effects the City and an opinion of it's impact. 1a. Quality Standards required. The bill requires a public agency to establish quality standards for everything it contracts for (goods, services, personal services, public improvements, alterations, repairs, and maintenance) and include those standards and consequences for not meeting them in its contracts. The standards may not be less than the highest standard prevalent. The agency may not enter into a contract unless the contractor signs an agreement to abide by these standards. Response: For public 8