Statutory Authority: ss. 16.701, 16.702 (1), (3) and 16.004
Statutes Interpreted: ss. 16.701 and 16.702
Sections 16.701 and 16.702, Stats., created in 1995 Wis. Act 27, authorize the Department of Administration to provide revenue for state information technology development through a fee on vendors who do business with the State. The proposed rule establishes a contract administration fee to be paid by providers of materials, supplies, equipment or contractual services to agencies under s. 16.75, Stats., in connection with transactions in excess of the amount indicated in s. 16.75 (1) (c), Stats., which is currently $10,000. The proposed rule also establishes the fee for a subscription service provided by the state which will contain current information to prospective vendors concerning state procurements.
Text of Rule
SECTION 1. Chapter Adm 9 is created to read:
Chapter Adm 9
CONTRACT ADMINISTRATION FEES
AND SUBSCRIPTION SERVICE
Adm 9.01 Authority. This chapter is promulgated under the authority of ss. 16.701, 16.702 (1) and (3), and 16.004, Stats., to implement ss. 16.701 and 16.702, Stats.
Adm 9.02 Purpose. The purposes of this chapter are to:
(1) Establish a contract administration fee to be paid by providers of materials, supplies, equipment or contractual services to state agencies.
(2) Establish a fee for providing a subscription service containing current information of interest to prospective vendors concerning state procurement opportunities.
Adm 9.03 Definitions. In this chapter:
(1) “Department” means the department of administration.
(2) “Subscription service” means a service provided by the department to prospective vendors regarding state procurement opportunities, statistical information relating to state procurements, or other relevant procurement information.
(3) “Vendor” means any private business entity which is a party to a procurement transaction under s. 16.75, Stats., and has a separate federal employer identification number (FEIN), or social security number for those businesses not having a FEIN.
Adm 9.04 Contract administration fee. Unless otherwise provided in this chapter, every vendor providing materials, supplies, equipment or contractual services to agencies under s. 16.75, Stats., in connection with transactions in excess of the amount indicated in s. 16.75 (1) (c), Stats., shall pay a contract administration fee as provided in s. Adm 9.05.
Adm 9.05 Schedule of fees. The schedule of contract administration fees shall be:
(1) A fee of $300 for each contract awarded if the amount of the contract is in excess of the amount indicated in s. 16.75 (1) (c), Stats., but less than $50,000.
(2) A fee of $1,000 for each contract awarded if the amount of the contract is $50,000 or more but less than $100,000.
(3) A fee of $3,000 for each contract awarded if the amount of the contract is $100,000 or more but less than $1,000,000.
(4) A fee of $5,000 for each contract awarded if the amount of the contract is $1,000,000 or more.
(5) In addition to the fees provided in subs. (1) to (4), a fee equal to the amount indicated in subs. (1) to (4) for each subsequent year of multi-year contracts.
(6) In the event that a specific dollar amount is not known for a contract or subsequent year of a multi-year contract, then the vendor shall pay a contract administration fee as provided in subs. (1) to (4), based on the estimated value made by the department of the goods or services to be provided by a vendor over the contract period or in the case of a contract which runs for more than one year, the estimated value for each 12 month period or partial period beyond the first 12 month period of an awarded contract.
(7) If more than one vendor is awarded a contract in connection with a particular procurement and it is not possible to estimate the amount each vendor will receive, then each vendor shall pay a fee as provided in subs. (1) to (5), on a contract amount determined by dividing the entire amount or estimated amount of the procurement by the total number of vendors except that each vendor shall pay a fee of at least $300.
Adm 9.06 Nonpayment of fees. Failure to pay the fees required by s. Adm 9.05 (1) to (5) within 5 working days after issuance of a notice of intent to award a contract or renewal of a contract, shall void the notice of intent to award or renewal of a contract and the bidder or proposer shall be ineligible for the contract or renewal of a contract.
Adm 9.07 Waiver and extension. (1) The department may waive a fee:
(a) For a vendor who is the only source available for a particular procurement.
(b) Where the department determines that it is in the best interests of the state to proceed with the procurement without payment of the fee.
(2) The department may extend the time for payment of a fee if an extension is in the best interests of the state.
Adm 9.08 Subscription service. The fee for any subscription service provided by the department shall be $100 per year.
Initial Regulatory Flexibility Analysis
1. Types of small businesses that will be affected by the rule:
Small businesses that provide materials, supplies, equipment or contractual services to agencies under s. 16.75, Stats., in connection with transactions in excess of the amount indicated in s. 16.75 (1) (c), Stats., which is currently $10,000, will be obligated to pay a contract administration fee.
It is estimated by the Department of Development, that there are approximately 120,000 small businesses in the State of Wisconsin. Approximately 7,000 to 8,000 of those small businesses do business with the state; however, the contracts with small businesses tend to be below the minimum amount indicated in s. 16.75 (1) (c), Stats., and, therefore, the number that would actually pay fees under this proposed rule is significantly less than half of the small businesses that do business with the state.
2. Reporting, bookkeeping, and other procedures required for compliance with the rule:
None.
3. Types of professional skills necessary for compliance with the rule:
None.
Fiscal Estimate
1995 Wis. Act 27 authorized the Department of Administration (DOA) to provide a contract administration fee to provide funds for state information technology development projects. These rules create a 4-part contract administration fee which would provide an estimated $4,589,600 revenue.
The revenue will be deposited under the segregated appropriation s. 20.870 (1) (q), Stats., Special projects; fee revenue, a segregated fund appropriation. The allocation of the revenues to specific agency level appropriations for Information Technology (I/T) development projects is subject to determination by the legislature as outlined in 1995 Wis. Act 27.
Administrative costs of collecting the contract administration fees and creating a database of vendors who do business with the State of Wisconsin are estimated at approximately $140,000 SEG annually. The general costs known at this point relate to:
1) Creating a mailing list to known vendors;
2) Doing a mass one-time mailing to inform state vendors about the program; and
3) Collecting, depositing and otherwise accounting for the contract administration fees.
There is also cost to enter vendor data into a database that will be accessible by the State Bureau of Procurement, state agency purchasing officials and by vendors themselves. Development of the database will enable the Department to offer a subscription service as outlined in the draft administrative rules. The DOA will likely request approval of this $140,000 SEG administrative funding authority for s. 20.505 (1) (r), Stats., at the quarterly s. 13.10, Stats., meeting in March, 1996, including any one-time costs. Greater clarification of administrative costs should be available at the time of the request.
Long-Range Fiscal Implications
Annual revenues and costs of administration are likely to be similar, based on information at this time.
Agriculture, Trade &
Consumer Protection
(Reprinted from 01-31-96
Wis. Adm. Register)
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection will hold public hearings on a proposed Department rule related to the Soil and Water Resource Management program (chapter ATCP 50, Wis. Adm. Code).
Written Comments
The hearings will be held at the times and places shown below. The public is invited to attend the hearings and make comments on the proposed rule. Following the public hearings, the hearing record will remain open until March 15, 1996, for additional written comments. An interpreter for the hearing-impaired will be available upon request for this hearing. Please make reservations for a hearing interpreter by February 9, 1996, by writing or calling Don Houtman at the phone number or address given below or by calling the Department's TTY number (608) 224-5058.
Copies of Rule & Contact Person
Copies of the proposed rule are available free of charge from:
Don Houtman, (608) 224-4625
2811 Agriculture Drive
P.O. Box 8911
Madison, WI 53708-8911
Hearing Information
All locations are handicapped accessible.
Five hearings are scheduled:
February 26, 1996 Informational meeting
Monday commencing at 2:30 p.m.,
County Board Room followed by the first
Jackson Co. Courthouse hearing of the day.
307 Main Street A second hearing of
BLACK RIVER FALLS the day will commence
WISCONSIN at 6:30 p.m.
February 27, 1996 Informational meeting
Tuesday commencing at 10:00 a.m.,
County Board Mtg. Room followed by the hearing.
Law Enforcement Center
Rusk Co. Courthouse
311 East Miner Ave.
LADYSMITH, WI
February 29, 1996 Informational meeting
Thursday commencing at
Meeting Room 1:00 p.m., followed by
Co. Hwy. Dept. Bldg. the hearing.
