Bill changing New Mexico procurement process signed into law

Mike Smith, Carlsbad Current-Argus
Published 2:38 p.m. MT March 10, 2020

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New Mexico Gov. Michelle Lujan Grisham signed into law a bill that changed the procurement process for government entities in New Mexico.

House Bill 319, sponsored by New Mexico Reps. David Gallegos (R-61), Sheryl Williams Stapleton (D-19) and Senators Pete Campos (D-8), William Payne (R-20) and Joseph Sanchez (D-40), removed the total amount limit on multiple source contracts that local governments may enter into and for purchase orders under those contracts. 

The bill passed the New Mexico House Feb. 14, 69-0 and the New Mexico Senate 38-0 on Feb. 20.

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“I’m really happy that the Governor was willing to sign it. I was getting a little worried because it has an emergency clause,” Gallegos said. “As of Friday, school districts and cities and counties can start using it.”

Stand Rounds, executive director of the New Mexico Coalition of Educational Leaders/New Mexico School Superintendents Association, said the legislation increased caps that were accidentally put in place three years ago by passage of Senate Bill 339.

“As they attempted to merge the process for multiple source contracts for local and county governments, school district, colleges and universities. The 2017 legislation inadvertently placed caps on certain entities such as public schools while increasing caps for other governmental entities,” Rounds said of Senate Bill 339.

Gallegos said there were several items being over purchased for which the original legislation would have established a cap of $1 million, but in a committee local public bodies were added to the bill.

“When they added that, and we did not know that, I actually voted for that bill, we thought it was just on the procurement side. It added the cities, counties and school districts so they couldn’t have any kind of work project that was over that $1 million cap without going for a request for proposal (RFP).”

Rounds said the 2020 legislation adjusted those caps to conform with increases in the Consumer Price Index and market conditions for services common to governmental entities.

“It relieves many multiple source contract needs for local school districts and enhances their ability to contain costs of procurement for projects,” he said.

Rounds said the New Mexico School Superintendents Association encouraged the passage of the legislation.

“So that schools would have a wider range of cost-effective procurement options,” he said.

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Mike Smith can be reached at 575-628-5546 or by email at [email protected] or @ArgusMichae on Twitter. 

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