Bill to change state contract authority discussed

A bill that would change state purchasing processes was debated on general file Feb. 20.

LB790, sponsored by Sen. Julie Slama of Peru, would allow the state Department of Administrative Services to join competitively bid group contracts entered into with political subdivisions of other states rather than seeking new bids for an independent contract. The bill would authorize the state purchasing bureau to negotiate the terms of such contracts.

Slama said the state currently purchases parking equipment using a contract held between the city of Lincoln and a private business. LB790 would enable Nebraska to engage in a similar process with political subdivisions in other states, she said.

“This is advantageous to the state because a political subdivision of another state with a contract Nebraska is looking to join would have already researched and vetted out the product, saving state’s funds and time,” Slama said.

Slama said the bill is not an expansion of government authority, adding that 38 states have such contracting authority.

Sen. Mark Kolterman of Seward opposed LB790, saying it would give DAS authority to evade competitive bidding laws and “spend taxpayer dollars in backroom deals.”

Sen. Justin Wayne of Omaha said there is no protection for disgruntled bidders in Nebraska law as there is in many of the other states that allow such contracting. He added that Nebraska currently requires public bidding for any contract in excess of $100,000.

“If we enter into an agreement with, say, Iowa and their threshold is $200,000 or $1 million then we [dodged] our public bidding process,” Wayne said. “That’s 100 percent what would happen.”

Slama introduced an amendment that would add LB890, sponsored by Lincoln Sen. Mike Hilgers, to her bill. The provision would allow political subdivisions to use a design-build contract method—in which design and construction contracts are bid simultaneously rather than sequentially—for water infrastructure projects.

“It’ll save money, save time, and is good for taxpayers,” Hilgers said.

The Legislature adjourned for the day before taking any action on the amendment or LB790.