Assigned to APPROP & GOV                                                                                                             FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2582

 

procurement; on-line bidding

 

Purpose

 

An emergency measure allowing the use of on-line bidding for state contracts and establishing the state electronic commerce (SELCO) fund to help finance electronic commerce initiatives.

 

Background

 

Presently, statute requires most state contracts to be awarded through a competitive sealed bidding process.  Procurement officers must issue invitation for bids on paper that include a purchase description and all contractual terms and conditions.  Notice of solicitation of bids has to be published one or more times in a newspaper of general circulation.  All received bids have to be opened at one time and place and are subject to public inspection after the contract is awarded.  Finally, contracts must be awarded to the lowest responsible and responsive bidder.  This legislation establishes a procurement process whereby bids are submitted to state procurement officers through an electronic, on-line process.

 

Though the exact fiscal impact is unknown, this legislation contains no significant fiscal impact to the state general fund.

 

Provisions

 

On-line Bidding for State Projects

 

1.      Allows a state procurement officer to use on-line bidding to purchase goods, services construction and information services if a state procurement officer determines on-line bidding to be more advantageous than other procurement methods.

 

2.      Requires state on-line bidding to accept bids from the opening date and time until the bid is officially closed and to post the bids on a real-time basis.

 

3.      Allows state purchasing agencies to require on-line bidding registration prior to opening date and time and to allow only prequalified bidders to submit bids on-line.

 

4.      Stipulates that on-line bids are public information and subject to sealed bid public disclosure requirements and that all remedies for sealed bids are available for on-line bids.

 

 

 

 

 

State Electronic Commerce Fund

 

5.      Establishes the SELCO fund, continuously appropriated and nonlapsing, to consist of appropriated monies and any gift, grant or devises for the benefit of the fund.

 

6.      Limits the use of SELCO fund monies to helping finance electronic commerce initiatives by state purchasing agencies if other funding mechanisms are absent or unusable.

 

7.      Requires ADOA to the administer the SELCO fund and to disburse monies to state purchasing agencies based on agency request and statewide electronic commerce priorities.

 

8.      Requires purchasing agencies that have realized a savings through implementing an electronic commerce initiative to refund the SELCO fund the amount disbursed plus 10 percent of the purchasing agency savings.  Allows the purchasing agency to retain the remainder of the savings.

 

9.      Prescribes definitions.

 

10.  Contains an emergency clause.

 

House Action

 

EUT                 2/21/01            DP       9-0-0-1-0

APPROP         3/6/01              DPA    13-0-0-3-0

3rd Read           3/19/01                        55-0-5-0

 

 

Prepared by Senate Staff

April 5, 2001