HCS HB 1794 -- STATE PURCHASES AND CONVEYANCES

SPONSOR:  Deeken

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Government Affairs by a vote of 7 to 0.

This substitute allows the Commissioner of the Office of
Administration to use the reverse auction procurement method to
purchase goods and nonprofessional services if the commissioner
believes the method will result in savings to the state.  The
reverse auction procurement method allows bidders to bid on
specified goods or nonprofessional services through real-time
electronic bidding.  Bidders' prices are revealed, and they have
an opportunity to modify their bid prices during the bidding
period.

The purchase amount requiring competitive bids is increased from
$3,000 to $10,000; and the purchase amount requiring advertising
is changed from $25,000 to $100,000.  The substitute lists
categories that do not require a single feasible source
determination.

Obsolete provisions of Chapter 34, RSMo, are repealed.

The substitute also requires any leasehold interest in
state-owned property being conveyed to be negotiated at no less
than the prevailing fair market value.  The commissioner is
authorized to negotiate the value for a conveyance to a nonprofit
entity.

FISCAL NOTE:  Estimated Income on General Revenue Fund of Unknown
in FY 2009, FY 2010, and FY 2011.  Estimated Income on Other
State Funds of Unknown in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that the bill will allow bidders to
bid online and to see other bids.  Monetary figures have not been
adjusted since 1975.  With the Internet, all requests for bids
are posted regardless of dollar amounts.  Vendors would have to
be pre-qualified before bidding.

Testifying for the bill were Representative Deeken; and Office of
Administration.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm