Colorado Kills Bid Preference Bill

The Colorado Legislature voted down a bid preference bill for public works construction contracts on April 25, 2012. 

Details of the bid preference:  The bill would have provided a 3% bid preference on service and construction contracts over $1 million for companies proving that at least 90% of the workers were Colorado residents.  An additional bid preference of 1% would be added if the company provided health and retirement benefits to their workers, and another 1% bid preference would be applied for firms providing apprenticeship training.

States with bid preference percentages:  If the bill had passed, Colorado would have joined Alaska, Wyoming, Nevada, and New Mexico as the only states offering a bid preference on public works construction projects.  The State of Washington adopted a reciprocal bid preference law (RCW 39.04.380) that went into effect on March 30, 2012. Click here for blog postings about Washington's new reciprocal bid preference law.

Washington State Resident Hiring Law Unconstitutional: Had Colorado's bill been approved, there would have been discussion as to whether it was constitutional. For many years, the State of Washington had a public works law requiring 95% or more Washington State residents where more than 40 workers were used, and 90% or more Washington residents where less than 40 workers were used. In 1982, the Washington State Supreme Court declared that chapter 39.16 RCW was unconstitutional and violated the privileges and immunities clause of the U.S. Constitution, Article IV, Section 2.

More Information:

• Denver Business Journal article of April 25, 2012 - "Bid-preference bill, key piece of Democrats' jobs package, dies in House.

• 1982 Washington State Supreme Court decision, Laborers Local Union No. 374, et al, Appellants, v. Felton Construction Company, et al, Respondents, click here.

Mike Purdy's Public Contracting Blog 
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