LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 2, 1997
         
         
      TO: Honorable Steven Wolens, Chair            IN RE:  Senate Bill No. 1752, As Engrossed
          Committee on State Affairs                              By: Armbrister
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1752 ( Relating 
to the purchase of goods and services by the state and to purchasing 
services provided by the state to local governments.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1752-As Engrossed
         
No significant fiscal implication to the State is anticipated.
         

         
 
Fiscal Analysis

The bill would require state agencies and 
institutions of higher education to use the "best value" approach 
when evaluating contractor bids, and to provide a process for 
barring contractors from contracting with the state under certain 
circumstances. The bill would also increase the threshold for 
requiring competitive bids from $1,000 to $2,000 and allow the 
General Services Commission (GSC) to delegate additional purchasing 
authority to state agencies. The bill would allow a state agency 
to purchase goods and services from a vendor who is not on the 
bidders list if the purchase price does not exceed $5,000.  
The bill would require the GSC to establish a training and continuing 
education program for certifying state agency purchasing staff. 
 The cost of providing this training program would be provided 
on a full cost recovery basis.

Methodology

The expanded 
training program for state agency purchasing staff required 
by the bill would result in additional costs based on an assessment 
of workload by the GSC.  These costs would be recovered by the 
GSC in the form of interagency contracts.  However, the cost 
to each agency is not expected to be significant.

The purchase 
of products and services having the "best value" could result 
in savings to the state over the long run due to increased reliability, 
durability, and quality of the products and services purchased. 

          
The bill would not require units of local government to participate 
in the training programs offered by the GSC.  However, local 
governments choosing to receive such training would be charged 
on a cost recovery basis by the GSC.
          
   Source:            Agencies:   720   University of Texas System Administration
                                         601   Department of Transportation
                                         696   Department of Criminal Justice
                                         303   General Services Commission
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,JD ,RN