Connecticut Auditor Urges Elimination of Overly Broad Exemption for Competitive Selection

The State of Connecticut's Auditor of Public Accounts has urged the General Assembly to eliminate an overly broad exemption available to state agencies in the selection of firms for personal service agreements with a cost more than $20,000.

Connecticut law [Section 4-215 subsection (a)] lists a number of exemptions available to state agencies.  It also authorizes the state's Office of Policy and Management (OPM) to develop additional exemption criteria.  One of the additional exemption criteria established provides for a waiver of competition for "services that require a contractor that has special capabilities or experience."

The auditor noted in their 2009 annual report to the General Assembly that this additional exemption "is an often-used condition for granting waivers from competitive bidding" and that it has the impact of limiting competition.  

The auditor recommended that the General Assembly limit exemptions to only the following criteria specified in state law:

1. Services for which the cost to the state of a competitive selection procedure would outweigh the benefits of such procedure, as documented by the state agency.
2. Proprietary services.
3. Services to be provided by a contractor mandated by the general statutes or a public or special act.
4. Emergency services, including services needed for the protection of life or health.