House committee substitute makes the following changes to the 1st edition.
Makes the following modifications to proposed GS 143-128.5 concerning state construction or repair contract bidding preference for qualified disabled veteran businesses. Changes the definition of qualified disabled veteran, now defining the term to mean a veteran with a disability rating of 60% or higher for a service-connected disability (was, a veteran with a service-connected disability). Additionally, defines qualified disabled veteran-owned business to mean a business that is 100% owned by one or more qualified disabled veterans (previously, termed qualified disabled veteran business and required the business to be 51% or more owned by one or more qualified veterans). Specifies that a spouse of a qualified disabled veteran business owner can have an ownership interest in the business so long as the the ownership interest of the qualified disabled veterans is at least 50%. Amends the definition of the term service-connected disability to limit the term to mean a disability incurred in the line of duty in active service (previously, included disabilities aggravated in the line of duty as well). Makes conforming changes.
Modifies the policy preference for qualified disabled veteran-owned businesses in state construction or repair contracts to qualify that the policy must balance against a priority to maintain the lowest cost to the State. Amends the policy's implementation to now afford a qualified disabled veteran-owned business that submits a bid for a state construction or repair contract that is within 10% of the lowest responsible, responsive bid, the opportunity to match the lowest responsible, responsive bid (unless it was made by the same), and requires the contract be awarded to the qualified veteran-owned business if the business agrees to match that lowest responsible, responsive bid (previously, calculated the preference against the lowest responsible, responsive bid submitted and determined award based on that calculation, granted to the lowest responsible, responsive bid). Specifies that in instances where there are more than one qualified disabled veteran-owned businesses eligible for preference, the one that submitted the lowest responsible, responsive bid will be awarded the contract. Requires that in giving the preference, no sacrifice or loss in price or quality is permitted. Makes organizational changes. Clarifies that preference eligibility requires that the qualified disabled veteran-owned business be a responsible, responsive bidder and includes in its bid proof that the business is properly registered with the Secretary of State (was, that the business has its principle place of business in the state). Adds that a bid failing to include the required documentation for preference is still eligible for the contract but is not eligible for the preference. Now provides that loss of preference qualification under contract makes the business ineligible for preference in the future but allows the business to continue to perform the contract (previously, required the contract price to be discounted the preference amount and did not disqualify future preference). Eliminates the notification requirements. Clarifies that the act applies to state construction or repair contracts bids (was, contracts) submitted on or after October 1, 2019.
Makes conforming changes to the act's titles.
Bill H 954 (2019-2020)Summary date: Jun 12 2019 - View Summary
Bill H 954 (2019-2020)Summary date: Apr 25 2019 - View Summary
Enacts new GS 143-128.5 to require that qualified disabled veteran businesses (business that is 51% owned by one or more qualified disabled veterans) are given a 10% preference when bidding on state construction or repair contracts. Mandates that construction or repair contracts be awarded to disabled veteran businesses when such bid is the lowest responsible, responsive bid. Requires qualified disabled veterans to include in the sealed bid proof of military discharge, a service-connected disability, and legal ownership of the business. Notice of eligible competitive bidding contracts should be provided to interested qualified disabled veteran businesses. Appropriates $25,000 in nonrecurring funds for the 2019-20 fiscal year from the General Fund to the Department of Administration, Purchase and Contract Division, to implement the act.
Effective October 1, 2019, and applies to construction or repair contracts submitted thereafter.