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Committee advances bill to give in-state contractors preference on public works bids; opponents warn of higher costs
Summary
The committee voted to advance Senate Bill 525, which would require state contracting agencies to give preference to Connecticut-based manufacturers, fabricators and erectors on public building and public works contracts, with an immediate fallback preference for U.S. firms if in-state contractors are unavailable.
The Labor and Public Employees Committee advanced Senate Bill 525, a proposal that would require state contracting agencies to give preference to manufacturers, fabricators and erectors located in Connecticut when awarding contracts for new construction, renovation or demolition of public buildings and public works projects.
Under the S language described in committee, if in-state contractors are not available, agencies must give preference to contractors located elsewhere in the United States. The S language specifies that the bill’s requirements apply regardless of competitive bidding rules and lowest-responsible-bidder standards in current state contracting law, according to staff briefing.
Opponents—including testimony from the Office of Policy and Management and the Department of Administrative Services—warned the measure could conflict with existing state contracting standards, lead to higher costs for taxpayers and raise questions about what constitutes an “in-state” contractor (for example, whether a firm with a warehouse or branch in Connecticut but domiciled elsewhere would qualify). Representative Canino said the bill risked “worse stewardship of taxpayer money” and asked what “preference” would mean in practice.
Supporters argued the change would create more local employment opportunities and help Connecticut businesses that had been excluded from public projects. Representative Wilson said the bill provided opportunities for local employers who have been shut out of public works work in the past and framed the measure as economic-development policy.
Action: The committee moved that Senate Bill 525 (LCO 6639) be JFS to the floor; the motion was made and seconded and the clerk later reported it would hold votes open pending members in other meetings.
Committee members asked for clarifying language about how “in-state” status would be defined and raised concerns about reciprocal policies in neighboring states and the broader impacts on competition and state procurement law.
