2019 - 2020 LEGISLATURE
June 7, 2019 - Introduced by Senators Craig,
Jacque, Nass, Stroebel and Bernier,
cosponsored by Representatives
Sanfelippo, Brandtjen, Dittrich, Gundrum,
Hutton, Jagler, Knodl, Kuglitsch, Magnafici, Neylon, Ott, Quinn,
Ramthun, Sortwell, Tusler, Wichgers and Plumer. Referred to Committee
on Transportation, Veterans and Military Affairs.
1An Act to amend
84.06 (2) (a); and
84.06 (2) (c) of the statutes; 2relating to: bidding procedures for highway improvements.
Analysis by the Legislative Reference Bureau
Under current law, highway improvement projects undertaken by the
Department of Transportation, with limited exceptions, must be executed by
contract based on bids. Under this bill, with an exception, if only one bid from a
competent bidder is received for a contract and the bid is in excess of 110 percent of
the estimated reasonable value of the work, DOT must reject the bid and readvertise
the contract for bids in a manner likely to increase the number of bidders.
For further information see the state 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:
84.06 (2) (a) of the statutes is amended to read:
(a) All such highway improvements shall be executed by contract 5
based on bids unless the department finds that another method as provided in sub. 6
(3) or (4) would be more feasible and advantageous. Bids shall be advertised for in
the manner determined by the department. Except as provided in par. (c) and
84.075, the contract shall be awarded to the lowest competent and responsible bidder 3
as determined by the department. If the bid of the lowest competent bidder is 4
determined by the department to be in excess of the estimated reasonable value of 5
the work or not in the public interest, all bids may be rejected. The department shall, 6
so far as reasonable, follow uniform methods of advertising for bids and may 7
prescribe and require uniform forms of bids and contracts. Except as provided in par. 8
(b), the secretary shall enter into the contract on behalf of the state. Every such 9
contract is exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87 and 16.89, but 10
ss. 16.528, 16.752, 16.753, and 16.754 apply to the contract. Any such contract 11
involving an expenditure of $1,000 or more shall not be valid until approved by the 12
governor. The secretary may require the attorney general to examine any contract 13
and any bond submitted in connection with the contract and report on its sufficiency 14
of form and execution. The bond required by s. 779.14 (1m) is exempt from approval 15
by the governor and shall be subject to approval by the secretary. This subsection 16
also applies to contracts with private contractors based on bids for maintenance 17
under s. 84.07.
84.06 (2) (c) of the statutes is created to read:
(c) Except as provided in the paragraph, if the department receives 20
only one bid for a contract from a competent bidder and the bid exceeds 110 percent 21
of the estimated reasonable value of the work under the contract, as determined by 22
the department, the department shall reject the bid and readvertise the contract for 23
bids. Notwithstanding par. (b), if the department readvertises for bids under this 24
paragraph, it shall advertise in a manner likely to increase the number of bidders. 25
If the department determines that readvertising the contract for bids will adversely
affect public safety, the department may award the contract to the sole bidder if, upon 2
request, the joint committee on finance approves the award.
(1) This act first applies to a contract advertised for bids on the effective date 5
of this subsection.