Committee sends House Bill 34 to floor to let agencies contract directly with in‑state universities

A House committee voted to send House Bill 34 to the floor with a due-pass recommendation after hearing testimony that the bill would allow state agencies to contact in-state universities directly when seeking services and thus increase competition among Idaho public institutions.

Representative Cheatham, the bill sponsor, told the committee the measure amends a provision of Idaho law described in the hearing as "Idaho code 60 seven-two 332 A" that was intended to improve competition but unintentionally advantaged out-of-state public universities. He said the amendments would preserve contracting transparency while restoring the ability of Idaho public universities to compete for agency work. The sponsor said the measure previously passed the Senate unanimously but did not reach the House in the prior session.

Valerie Bollinger, administrator of the Division of Purchasing, described how state procurement currently works and how the bill would change the outreach process. Bollinger said agencies now typically run a full procurement solicitation through LUMA and ask universities to respond; universities are not always well set up to compete in that standard procurement format. Under the proposed change, an agency could contact known program contacts at in‑state institutions to determine interest and pursue a competitive selection if multiple universities respond, or proceed directly if only one university expresses interest.

Republican members asked whether the change would reduce oversight. Bollinger said the Division of Purchasing retains an oversight role, sets standard terms and conditions, and remains available to assist agencies; she said she did not expect contract quality to decline and noted agencies should work with legal counsel when contracting directly. Representative Levin asked specifically how an agency gauges interest; Bollinger described outreach by email or phone to program contacts at universities and the potential for a follow-up competition if multiple institutions express interest.

Representative McCann moved that the committee send HB34 to the floor with a due-pass recommendation; the motion carried on a voice vote. Director Steve Bailey of the Department of Administration was in the hearing room but did not speak during the recorded discussion.