SB 18-268

Senate Bill 18-268, which has been signed into law, allows Colorado's Department of Transportation (CDOT) more flexibility when awarding contracts for highway projects. If there are fewer than three bidders and the project estimate is under $1 million, CDOT can now authorize someone to approve a contract that costs up to 25% more than initially estimated, instead of being limited to just 10%. Additionally, the bill ensures that CDOT can still award contracts to the lowest responsible bidder regardless of the initial estimate if it's in the state’s best interest, and requires CDOT to report on these decisions annually. This affects highway construction projects and aims to improve efficiency and cost management for smaller bids with limited competition.

Official Summary

If there are fewer than 3 bidders on a design bid build highway project, a provision of current law generally prohibits the department of transportation (CDOT) from awarding a contract in an amount that is more than 10% over CDOT's estimate on the project, but allows the executive director of CDOT (executive director) to award a contract that is more than 10% but less than 25% over the estimate if the estimate is less than $1,000,000. The bill authorizes a designee of the executive director to award such a contract. Another provision of current law, which is scheduled to repeal on July 1, 2018, authorizes the executive director to award a contract for a design bid build highway project to the low responsible bidder regardless of CDOT's estimate on the project if the executive director determines that it is in the best financial, economic, or other interest of the state to do so and requires CDOT, in its annual report to its legislative oversight committees, to explain the reasons for making the award and estimate the amount of cost savings achieved by making any such award. The bill prevents the authorization and reporting requirements from being repealed. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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