input: [Bill #] HB12-1113 [Short Title] Preferences In State Public Contracts [Sponsors] LEE [Most Recent Status] 02/22/2012 House Committee on State, Veterans, & Military Affairs Postpone Indefinitely [Calendar Notification] NOT ON CALENDAR [News Links] No news items found [Bill Summary] 
output: Preference where contract to be performed by mostly Colorado residents. On and after July 1, 2012, if a state agency (agency) or governmental body (body) issues an invitation for bids or a request for proposals for a construction contract for a public project (construction contract) or for a services contract that is, in either case, worth more than $500,000, the agency or body must grant a 3% preference to the bidder or offeror (contractor) if the contractor certifies that at least 90% of the employees who will perform the requirements of the contract are Colorado residents. With respect to a construction contract, an agency or body must also grant a contractor who receives the 3% preference: * An additional 1% preference if the contractor certifies that it offers health care and retirement benefits to the employees who will perform the contract requirements; and * An additional 1% preference if the contractor certifies that the employees who will perform the contract requirements have access to a federally qualified apprenticeship training program. With respect to a services contract, an agency or body must also grant a contractor who receives the 3% preference an additional 2% preference if the contractor certifies that it offers health care benefits and retirement benefits to the employees who will perform the requirements of the contract. An agency or body may not allow any of the preferences to a noncompliant contractor, and the contractor may not use the preference to satisfy a minimum requirement of a contract. A contractor that seeks a preference for a bid or offer must certify its eligibility for the preference to the agency or body that issued the invitation for bids or request for proposals. The agency or body may rely on the certification but may also require the contractor to submit substantiating documentation or other information needed to verify the contractor's eligibility for the preference. The executive director of the department of personnel (department) must promulgate rules for the administration of each preference, including processes for a contractor to certify and an agency or body to verify the contractor's eligibility for the preference. Veterans' preference. When a contract for supplies or services is to be awarded though competitive sealed bidding or through competitive sealed best value bidding, the bill requires an amount equal to 2.5% of the bid price to be subtracted from the bid of each bidder that is a veteran or a veteran business. When a contract for supplies, services, or professional services is to be awarded through a request for competitive sealed proposals, the bill requires that one of the evaluation factors stated in the request is whether the offeror is a veteran or a veteran business. The relative weight assigned to the offeror's status as a veteran or as a veteran business is 2.5%. The bill defines "veteran" to mean a person who is a resident of the state of Colorado, who was separated under honorable conditions, and who, other than for training purposes, served in any branch of the armed forces of the United States, including, without limitation, service in the armed forces reserve or National Guard, and "veteran business" to mean a continuing independent, for-profit business located in the state in which one or more veterans hold an ownership interest of at least 51%. The bill requires any person that requests a veterans' preference to complete an application for the purpose of certifying the person's status as a veteran or a veteran business. Upon the satisfaction of the department of personnel (department) that the person is entitled to the preference, the department is required to issue the person a distinctive identification number that, when submitted as part of a bid, offer, or other purchasing documents, entitles the person to the preference. Any person who has obtained the necessary certification is required to notify the department within 30 days after the occurrence of any event that affects the person's ability to qualify as a veteran business, including, without limitation, a change in the ownership of the business. If the department determines that a person that received a preference no longer satisfies the requirements applicable to a veteran business at any time during the pendency of the contract, the executive director of the department (executive director) may reject the bid or offer submitted by the person or assess a civil penalty against the person. The department is required to revoke the certification of a veteran business for a period of not less than 12 months upon making a determination that the business has failed to notify the department of a change in the status of the business. During the 12-month revocation period, a veteran business whose certification has been revoked may submit a bid or offer on a state contract but is not eligible for the preference. The bill specifies the manner in which certification may be restored after the completion of the revocation period. The bill specifies penalties that are applicable if the department determines that a person has made a material misrepresentation or otherwise committed a fraudulent act in obtaining a veterans' preference. Any person against whom the department has imposed a sanction may apply to the executive director for a review of the decision. The executive director or the executive director's designee has the authority to promulgate rules to implement the veterans' preference.