AB161: Bill Text

LRB-2025/1

JTK/MES/GMM:kjf:pg

2005 - 2006 LEGISLATURE

2005 Assembly BILL 161

March 3, 2005 - Introduced by Representatives Albers, Davis, Gielow, Hahn, Hines, Musser, Pettis, Townsend, Petrowski and Vos, cosponsored by Senators Kapanke and Erpenbach. Referred to Committee on Budget Review.

AB161,1,4 An Act to amend 59.52 (29) (a), 60.47 (2) (a), 60.47 (2) (b), 61.55, 62.15 (1) and 62.15 (3); and to create 16.73 (7) and 16.75 (10r) of the statutes; relating to: solicitation of bids for public procurements by means of an electronic auction and granting rule-making.

Analysis by the Legislative Reference Bureau

Currently, subject to numerous exceptions, the Department of Administration (DOA) and those state agencies to which DOA delegates purchasing authority must solicit bids for state procurements by publishing two legal notices requiring sealed bids to be received by a specified time or by soliciting bids in an electronic auction that is conducted at a specified time, notice of which is given on the Internet.

This bill directs DOA to maintain a system for solicitation of bids for state procurements through use of an electronic auction and to prescribe, by rule, procedures whereby counties, municipalities, school districts, and other local governments are permitted to use the system for making their procurements upon payment of a reasonable fee prescribed by DOA. The bill also requires DOA to provide to the Department of Workforce Development (DWD) any information obtained through the use of that electronic auction concerning the hourly pay, plus the hourly contribution for benefits, paid for any trade or occupation that is commonly employed on projects of public works that are subject to the prevailing wage law, which requires laborers, workers, mechanics, and truck drivers employed on state or local public works projects to be paid at the rate paid for a majority of the hours worked in the person's trade or occupation in the county in which the project is located, in order for DWD to determine the prevailing wage rates for those trades or occupations.

Generally under current law, if a city, village, town, or county (political subdivision) wishes to let a public contract involving the construction or repair of any public work or building, or the furnishing of supplies or materials, there are a number of bidding requirements that apply to such contracts. If the value of the contract is above a certain amount, or between certain amounts, a political subdivision must publish a notice in the newspaper before it contracts for the work, or, in the case of counties, the county board may instead contract with a qualified bidder as specified by statute. Generally, these current law provisions that apply to cities also apply to federated public library systems and technical college districts.

Under this bill, a political subdivision, federated library system, and technical college district may solicit bids for certain public contracts by utilizing DOA's electronic procurement system. This option applies to situations under which a political subdivision is currently required or authorized to publish a notice in a newspaper before the contract is executed although, under the bill, the use of DOA's system counts as one of the required publications of such a notice.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB161, s. 1 Section 1. 16.73 (7) of the statutes is created to read:

AB161,2,6 16.73 (7) The department shall, by rule, prescribe procedures whereby municipalities may utilize the electronic procurement system maintained by the department under s. 16.75 (10r). The department may assess reasonable fees to municipalities that utilize the system for their procurements for the purpose of supporting the department's costs of maintaining the system.

AB161, s. 2 Section 2. 16.75 (10r) of the statutes is created to read:

AB161,3,9 16.75 (10r) The department of administration shall maintain a system whereby bids for materials, supplies, equipment or contractual services may be solicited through the use of an electronic auction whenever that department or its designated agent under s. 16.71 (1) determines that it is in the best interests of the state to solicit bids by this means. The department of administration shall provide to the department of workforce development any information obtained through the use of that electronic auction concerning the hourly basic rate of pay, as defined in s. 103.49 (1) (b), plus the hourly contributions for health insurance benefits, vacation benefits, pension benefits, and any other bona fide economic benefit, paid directly or indirectly for any trade or occupation that is commonly employed on projects of public works that are subject to s. 66.0903, 103.49, or 103.50 in order for the department of workforce development to determine the prevailing wage rates for those trades or occupations under s. 66.0903 (3) (am) or (ar), 103.49 (3) (a) or (am), or 103.50 (3) or (4).

AB161, s. 3 Section 3. 59.52 (29) (a) of the statutes is amended to read:

AB161,4,4 59.52 (29) (a) All public work, including any contract for the construction, repair, remodeling, or improvement of any public work, building, or furnishing of supplies or material of any kind where the estimated cost of such work will exceed $25,000 shall be let by contract to the lowest responsible bidder. Any public work, the estimated cost of which does not exceed $25,000, shall be let as the board may direct. If the estimated cost of any public work is between $5,000 and $25,000, the board shall give a class 1 notice under ch. 985 before it contracts for the work or shall contract with a person qualified as a bidder under s. 66.0901 (2). All contracts to which this paragraph applies may be solicited by use of the department of administration's electronic procurement system under s. 16.75 (10r) and, if that system is used, the class one notice requirement under this paragraph does not apply. A contract, the estimated cost of which exceeds $25,000, shall be let and entered into under s. 66.0901, except that the board may by a three-fourths vote of all the members entitled to a seat provide that any class of public work or any part thereof may be done directly by the county without submitting the same for bids. This subsection does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers. This subsection does not apply to highway contracts which the county highway committee or the county highway commissioner is authorized by law to let or make.

AB161, s. 4 Section 4. 60.47 (2) (a) of the statutes is amended to read:

AB161,4,12 60.47 (2) (a) No town may enter into a public contract with an estimated cost of more than $5,000 but not more than $15,000 unless the town board, or a town official or employee designated by the town board, gives a class 1 notice under ch. 985 before execution of that public contract. The town may solicit bids for the public contract by use of the department of administration's electronic procurement system under s. 16.75 (10r) and, if the town does so, the notice requirement under this paragraph does not apply.

AB161, s. 5 Section 5. 60.47 (2) (b) of the statutes is amended to read:

AB161,4,21 60.47 (2) (b) No town may enter into a public contract with a value of more than $15,000 unless the town board, or a town official or employee designated by the town board, advertises for proposals to perform the terms of the public contract by publishing a class 2 notice under ch. 985. The town may solicit bids for the public contract by use of the department of administration's electronic procurement system under s. 16.75 (10r) and, if the town does so, the class 2 notice that is otherwise required under this paragraph shall be a class one notice requirement under ch. 985. The town board may provide for additional means of advertising for bids.

AB161, s. 6 Section 6. 61.55 of the statutes is amended to read:

AB161,5,14 61.55 Contracts involving over $15,000; how let; exception. All contracts for public construction, in any such village, exceeding $15,000, shall be let by the village board to the lowest responsible bidder in accordance with s. 66.0901 insofar as said that section may be is applicable. If the estimated cost of any public construction exceeds $5,000, but is not greater than $15,000, the village board shall give a class 1 notice, under ch. 985, of the proposed construction before the contract for the construction is executed. This provision does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers, and this provision and s. 281.41 are not mandatory for the repair and reconstruction of public facilities when damage or threatened damage thereto creates an emergency, as determined by resolution of the village board, in which the public health or welfare of the village is endangered. Whenever the village board by majority vote at a regular or special meeting declares that an emergency no longer exists, this exemption no longer applies. All contracts to which this section applies may be solicited by use of the department of administration's electronic procurement system under s. 16.75 (10r) and, if that system is used, the class 1 notice requirement under this section does not apply.

AB161, s. 7 Section 7. 62.15 (1) of the statutes is amended to read:

AB161,6,4 62.15 (1) Contracts; how let; exception for donated materials and labor. All public construction, the estimated cost of which exceeds $15,000, shall be let by contract to the lowest responsible bidder; all other public construction shall be let as the council may direct. If the estimated cost of any public construction exceeds $5,000 but is not greater than $15,000, the board of public works shall give a class 1 notice, under ch. 985, of the proposed construction before the contract for the construction is executed. This provision does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers. The council may also by a vote of three-fourths of all the members-elect provide by ordinance that any class of public construction or any part thereof may be done directly by the city without submitting the same for bids. All contracts to which this subsection applies may be solicited by use of the department of administration's electronic procurement system under s. 16.75 (10r) and, if that system is used, the class 1 notice requirement under this section does not apply.

AB161, s. 8 Section 8. 62.15 (3) of the statutes is amended to read:

AB161,6,19 62.15 (3) Advertisement for bids. After the plans, specifications, and form of contract have been prepared, the board of public works shall advertise for proposals for doing such work by publishing a class 2 notice, under ch. 985. The bids may be solicited by use of the department of administration's electronic procurement system under s. 16.75 (10r) and, if the board of public works does so, the class 2 notice that is otherwise required under this subsection shall be a class 1 notice requirement under ch. 985. No bid shall be received unless accompanied by a certified check or a bid bond equal to at least 5% but not more than 10% of the bid payable to the city as a guaranty that if the bid is accepted the bidder will execute and file the proper contract and bond within the time limited by the city. If the successful bidder so files the contract and bond, upon the execution of the contract by the city the check shall be returned. In case the successful bidder fails to file such contract and bond the amount of the check or bid bond shall be forfeited to the city as liquidated damages. The notice published shall inform bidders of this requirement.

AB161, s. 9 Section 9. Nonstatutory provisions.

AB161,6,24 (1) The department of administration shall submit in proposed form the rules required under section 16.73 (7) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 7th month beginning after the effective date of this subsection.

AB161, s. 10 Section 10. Initial applicability.

AB161,7,3 (1) This act first applies to contracts entered into by a city, village, town, or county on the first day of the 7th month beginning after the effective date of this subsection.

AB161,7,4 (End)