SB12-001, Contract Preferences for Employing Coloradans
SB12-001
CONTRACTING PREFERENCES FOR PERSONS WHO EMPLOY AT LEAST A SPECIFIED PERCENTAGE OF COLORADO RESIDENTS TO PERFORM THE REQUIREMENTS OF A GOVERNMENT CONTRACT
Sponsors: Sen. Hudak, Rep. Duran and Ryden
Staff Name: Stuart Rubinstein
What the Bill Does:
SB12-001 offers contracting preferences to individuals who employ a certain percentage of Colorado residents. Companies which certify that 90% of the employees who will complete the government contract are Colorado residents will receive preferences in obtaining certain government contracts. Starting July 1st, if a government body or state agency is seeking bids for a public project, the agency or body will grant a 3% preference to companies who meet the certification requirements. The same preference will be applied to service contracts totaling more than $1 million. Various other preferences will be awarded to companies that certify they offer health care, retirement benefits, and federally qualified apprenticeship training.
Colorado Context:
The unemployment rate in Colorado is currently slightly lower than the national average. As of October 2011, Colorado unemployment was 8.1%#. In December, there were a total of 2,221,200 individuals working “non-farm” jobs in the state of Colorado.# That was an increase of 23,600 in 2011.# SB12-001 is intended to help ensure that Colorado’s economic climate remains on the upswing by providing an incentive for corporations to employ Colorado residents.
National Context:
According to the National Association of State Procurement Officials, the use of preference policies by State governments is on the rise; as of 2009, twenty-seven states provide legal preference for in-state bidders.# The same states also offer a variety of vendor based preferences such as preferences for veteran-owned businesses, minority-owned businesses, and disabled-owned businesses.#
Bill Provisions:
SB12-001 provides preferences in government contracts to individuals who employ at least a certain percentage of Colorado Residents. In dealing with proposals for public projects (construction projects) and service contracts over $1 million, the following preferences will be shown:
- 3% preference to the bidder or offeror if the contractor certifies that at least 90% of those completing the contract are Colorado Residents.
In construction contracts, an agency or body that grants a contractor the 3% preference must also grant:
- Additional 1% preference if the contractor certifies it offers health and retirement benefits to those completing the government contract
- Additional 1% preference if the contractor certifies it offers a federally qualified apprenticeship training program to those individuals completing the government contract.
For a services contract, an agency or body that grants a contractor the 3% preference must also grant:
- Additional 2% preference if the contractor certifies it offers health and retirement benefits to those completing the government contract
Fiscal Impact: No fiscal note available.
