COMPETITIVE BIDDING REQ.; MODIFY                                                  H.B. 4476 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                                  ON THIRD READING

House Bill 4476 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor:  Representative Gary Eisen

House Committee:  Transportation

                             Ways and Means

Senate Committee: Transportation and Infrastructure

CONTENT

The bill would amend Public Act 51 of 1951, the Michigan Transportation Fund law, to do the following:

-- Exempt the installation or upgrading of advanced traffic operation centers and traffic signal systems from a requirement that all construction projects of the Michigan Department of Transportation concerning highways, streets, roads, and bridges be performed by contract if the cost exceeded $100,000.

-- Modify from $100,000 to $300,000 the threshold at which construction projects of a local road agency would have to be performed by contract awarded through competitive bidding unless other circumstances apply.

-- Exclude routine maintenance, instead of maintenance, from the requirement above.

-- Prohibit a local road agency from performing construction projects that met the threshold to require a contract awarded by competitive bidding that if performed by a contract in that manner would exceed a total of $800,000 in a fiscal year.

MCL 27.661c                                                           Legislative Analyst:  Tyler VanHuyse

FISCAL IMPACT

The bill would have an indeterminate fiscal impact on State and local government. Data on the cost for the installation or upgrading of traffic operations centers and traffic signal utilities are unavailable. It also is not clear whether raising the direct force threshold for local road agency projects to $300,000, or limiting a local government's ability to bid on construction projects that exceeded $800,000, would result in additional savings or expense for those projects.

Date Completed:  10-1-20                                              Fiscal Analyst:  Michael Siracuse

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.