LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 11, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: HB1892 by Lewis, Glenn (Relating to the threshold contract amount at which certain political subdivisions are required to engage in a competitive purchasing procedure and the criteria required to evaluate bidders in the competitive purchasing process.), As Engrossed ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would increase the threshold in a purchasing contract before a city is required to engage in competitive bidding. The contract amount would increase from $15,000 to $25,000. The bill would also increase the threshold in the statutes relating to historically underutilized businesses and crime control and prevention districts. Additionally, the bill would take into consideration another factor when awarding a sealed bid. The bill would change the criteria from lowest responsible bidder to the bidder that provides goods or services at the best value for the city. Best value may include purchase price, reputation of the bidder, quality of the goods, extent to which the goods meet the city's needs, bidder's past relationship with the city, impact on the ability of the city to comply with laws and rules relating to historically underutilized businesses and nonprofit organizations employing persons with disabilities, long-term cost to the city to acquire the bidder's goods and services and any other relevant factor that a private business entity would consider in selecting a bidder. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, DB