Committee backs bill to let state agencies contract directly with Idaho universities

Representative Cheatham presented House Bill 34 to the House Commerce and Human Resources Committee, saying the bill would amend Idaho Code (transcript reference: "672332 A") to correct an unintended consequence that had made it easier for out-of-state public universities to hold state contracts while placing Idaho institutions at a disadvantage.

Cheatham told the committee the original change to the code section was intended to improve competition for state contracts but also had the unintended effect of allowing out-of-state public universities greater flexibility in securing agency work. "This bill . . . will correct that while still retaining contracting transparency and streamline the process," Cheatham said, adding that the measure previously passed the Senate unanimously but did not reach the House floor in the prior session.

Valerie Bollinger, administrator of the Division of Purchasing, told the committee how current procurement works and how the bill would change agency practice. "Right now, what happens... we run a full a full blown procurement process," Bollinger said. Under current practice the division posts solicitations in LUMA and agencies receive responses; universities often find it difficult to respond because they are not structured like private vendors. Bollinger said the bill would allow agencies to contact university program contacts directly by email or phone to ask whether they are interested in a contract. "If multiple universities are interested, great... If only one is interested, they can go straight to contracting," she said.

Committee members asked whether the change would reduce oversight. Bollinger said the Division of Purchasing would continue to provide oversight and set standard terms and conditions, and that agencies would be expected to involve legal counsel as appropriate. "I don't I wouldn't say that we're losing anything," she said, adding the division provides support and sets expectations even when it does not run the procurement.

The committee voted to send House Bill 34 to the floor with a do-pass recommendation. The motion was made by Representative McCann and carried by voice vote with no recorded opposition.

Ending: Cheatham said Director Steve Bailey of the Department of Administration and other purchasing staff were in the audience to answer follow-up questions; the committee will consider the bill on the House floor next.