State procurement officials warn H.244 could limit bids, add certification burden for advertising contracts

At a House Committee on Government Operations hearing, officials from the Department of Buildings and General Services (BGS) warned that H.244, a bill “related to the state contract and standards for advertising,” could restrict contracting options and add administrative burdens for state advertising buys.

BGS Commissioner Wanda Manoli and Debbie DeMour, BGS director of purchasing and contracting, told the committee they had limited time to review the current draft and raised operational concerns about a high in‑state threshold and a proposed vendor certification. “We really have not had a lot of time to delve into it,” Commissioner Wanda Manoli said, and she asked the committee to seek input from additional agencies before advancing the bill.

The committee’s Office of Legislative Council presented amended language that lowers the in‑state threshold from an earlier draft to 70 percent and adds exemptions. “The threshold … has been dropped down to 70%,” Jonathan Gray of the Office of Legislative Council said, and he noted the amendment also exempts tourism advertising and employment or job‑posting ads from the in‑state calculation.

DeMour said the change would be a substantial shift for procurement practice. “We hold just around 1,400 contracts,” DeMour said, and she told lawmakers that roughly 45 percent of BGS contracts are currently issued to Vermont firms while some counts range “between the 45% to maybe 55%” depending on the contract types. She told the committee that advertising contracting is mostly done at the agency level now and that the bill, as written, could require BGS to take responsibility for advertising contracts statewide. DeMour also said BGS would likely need to insert a certification form into requests for proposals (RFPs) so vendors could attest they meet the bill’s standards.

BGS officials warned that the certification requirement could have unintended consequences. If vendors fail to complete or cannot attest to the certification, their bids could be ruled nonresponsive and would not be considered. “If it’s not signed, if they can’t meet the requirements, then we’re not gonna — the state would not consider the bid,” DeMour said. Commissioner Manoli added that, under the bill’s current language, the certification could lead to an adverse effect where fewer bidders qualify: “they don’t validate and now we don’t have any bids.”

Committee members asked practical questions about how the 70 percent threshold would be applied — whether it would be measured per solicitation or across a fiscal year — and what would happen if the state did not receive enough in‑state qualified bids. BGS staff said the bill does not specify a penalty but explained procurement practice: nonresponsive bids are not considered and the state sometimes reissues solicitations if responses are inadequate. The department also noted the potential for bid protests under current procurement rules.

A bill supporter who identified himself as Paul Knight, a freelance journalist, urged the committee to consider outreach to local media as part of implementation. “I think a lot of news outlets in the state are not aware of the fact that they can be considered for this,” Knight said, arguing that proactive outreach could increase in‑state participation.

Committee members proposed collecting additional data or piloting the approach before enacting a statewide standard. One lawmaker suggested a pilot or data collection to test whether the threshold is achievable; BGS said it could supply more detailed contract data if requested. The committee also planned to consult Senate members working on a companion measure to avoid conflicting amendments.

The bill’s amended language and the BGS testimony leave several operational questions open: how the 70 percent threshold will be measured (per solicitation or year‑to‑date), how exemptions will be applied, and whether centralizing advertising procurement at BGS is intended. The Office of Legislative Council presented the amendment lowering the percentage and adding exemptions for tourism and job postings, but committee members and BGS staff said they need more data and agency input before recommending a final form.

Next steps noted during the meeting included requests for BGS to gather and provide more detailed contracting data, and the committee taking a short recess to consult Senate staff about parallel work. The bill will continue through the legislative process, with members indicating it will later go to appropriations and the Senate for further consideration.