FINAL BILL REPORT

HB 2772

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

Job order contracting is a type of alternative public works contracting procedure. Under a job order contract, a contractor agrees to perform an indefinite quantity of public works jobs, defined by individual work orders, over a fixed period of time. A public entity may not have more than two job order contracts in effect at any one time, except for the Department of Enterprise Services which may have four contracts in effect. The maximum total dollar amount that is awarded under a job order contract may not exceed $4 million per year for a maximum of three years, except for counties with a population of more than 1 million, which may award up to a maximum of $6 million per year for a maximum of three years.

Job order contracts may be executed for an initial contract term of two years, with an option to extend or renew the contract for an additional year provided that any extension or renewal is priced as provided in the original proposal and is mutually agreed upon by the public body and the job order contractor. A job order contractor must subcontract 90 percent of the work under the contract, and may self perform 10 percent.

Specified state and local government entities are authorized to use the job order contracting procedure. Public Hospital Districts are not authorized to use the job order contracting procedure.

Summary:

Public Hospital Districts with total revenues over $15 million may use the job order contracting procedure.

The Department of Enterprise Services may issue job order contract work orders for any Public Hospital District.

Votes on Final Passage:

House	97	0
Senate	47	0