Source Selection and Contract Formation

C.R.S. tit. 24, art. 103
in effect

C.R.S. § 24-103-201 Methods of source selection

24-103-201. Methods of source selection. (1) Unless otherwise authorized by law, all state contracts shall be awarded as provided in: (a) Section 24-103-202, concerning awards solicited by an invitation for bids; (b) Section 24-103-203, concerning awards solicited by a request for proposals; (c) Section 24-103-202.3, concerning awards solicited by an invitation for best value bids; (d) Section 24-103-204, concerning small purchases; (e) Section 24-103-205, concerning sole source procurements; (f) Section 24-103-206, concerning emergency procurements; (g) Part 14 of article 30 of this title 24, concerning architect, engineer, landscape architect, and land surveying services; (h) Section 24-103-208, concerning other procurement methods; or (i) Part 2 of article 38 of this title 24, concerning public-private initiatives.

C.R.S. § 24-103-201.5 Market research - request for information

24-103-201.5. Market research - request for information. (1) A procurement official may conduct market research prior to selecting a method of source selection pursuant to this part 2. The executive director may promulgate rules in accordance with the "State Administrative Procedure Act", article 4 of this title 24, to further define methods of conducting market research. (2) A request for information may be used as a method to obtain preliminary information about a market or type of available service or product when there is not enough information readily available to write an adequate specification or statement of work. A request for information may ask for input from potential vendors to assist the state in preparing a specification or statement of work for a subsequent solicitation and may ask for pricing information only with the provision that such information would be submitted voluntarily. The request for information must clearly state that no award will result from the request. (3) When market research has been conducted, the governmental body is not obligated to commit to a method of source selection and may determine that it will not pursue a procurement. (4) All responses to requests for information are confidential until after an award based on a subsequent solicitation has been made or until the procurement official determines that the state will not pursue a solicitation based on the request for information. After such time, the responses to a request for information shall be open to public inspection in accordance with the provisions of the "Colorado Open Records Act", part 2 of article 72 of this title 24.

C.R.S. § 24-103-202 Invitation for bids

24-103-202. Invitation for bids. (1) Contracts shall be solicited by an invitation for bids except as otherwise provided in section 24-103-201. (2) (a) An invitation for bids shall be issued and shall include a purchase description and all contractual terms and conditions applicable to the procurement. (b) Repealed. (3) Adequate public notice of the invitation for bids shall be given a reasonable time, but in the case of construction at least fourteen days, prior to the date set forth therein for the opening of bids, pursuant to rules. Such notice may include publication in a newspaper of general circulation. (4) Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and such other relevant information as may be specified by rules, together with the name of each bidder, shall be entered on a record, and the record shall be open to public inspection. After the time of the award, all bids and bid documents shall be open to public inspection in accordance with the provisions of sections 24-72-203 and 24-72-204. (5) Bids shall be unconditionally accepted, except as authorized by subsection (7) of this section. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in the evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life-cycle costs. No criteria may be used in the bid evaluation that are not set forth in the invitation for bids. (6) Withdrawal of inadvertently erroneous bids before the award may be permitted pursuant to rules if the bidder submits proof of evidentiary value which clearly and convincingly demonstrates that an error was made. Except as otherwise provided by rules, all decisions to permit the withdrawal of bids based on such bid mistakes shall be supported by a written determination made by the chief procurement officer or the procurement official. (7) The contract shall be awarded with reasonable promptness by written notice to the low responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids, except as otherwise provided for certain low tie bids under section 24-103-902. In the event that all bids for a construction project exceed available funds, as certified by the appropriate fiscal officer, the procurement official is authorized, in situations where time or economic considerations preclude resolicitation of work of a reduced scope, to negotiate an adjustment of the bid price with the low responsible bidder in order to bring the bid within the amount of available funds; except that the functional specifications integral to completion of the project may not be reduced in scope, taking into account the project plan, design and specifications, and quality of materials. (8) When it is considered impractical to initially prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation. (9) The provisions of subsections (4), (5), and (6) of this section shall also apply to construction and shall be in addition to any other requirements for an invitation for bids for construction as provided for in this title 24.

C.R.S. § 24-103-202.3 Invitation for best value bids

24-103-202.3. Invitation for best value bids. (1) When, pursuant to rules, the chief procurement officer or a procurement official determines in writing that the use of an invitation for best value bids is advantageous to the state, a contract may be solicited by invitation for best value bids. (2) An invitation for best value bids shall be made in the same manner as provided in section 24-103-202 (2), (3), and (4). (3) (a) The chief procurement officer or procurement official may allow a bidder to submit prices for enhancements, options, or alternatives to the base bid for a commodity or service that will result in a product or service to the state having the best value at the lowest cost. The invitation for best value bids must clearly state the purchase description of the commodity or service being solicited and the types of enhancements, options, or alternatives that may be bid; except that the functional specifications integral to the commodity or service may not be reduced. (b) Prices for enhancements, options, or alternatives to the bid may be evaluated by the chief procurement officer or procurement official to determine whether the total of the bid price and the prices for enhancements, options, or alternatives provide a contract with the best value at the lowest cost to the state. This evaluation shall be made utilizing the rules of the executive director of the department of personnel promulgated pursuant to subsection (3)(d) of this section. (c) A contract may be awarded to a bidder where the total amount of a bid price and the prices for enhancements, options, or alternatives of the bidder exceed the total amount of the bid price and the prices for enhancements, options, or alternatives of another bidder if it is determined pursuant to subsection (3)(b) of this section that the higher total amount provides a contract with the best value at the lowest cost to the state. (d) The executive director of the department of personnel shall promulgate rules to be utilized by the chief procurement officer or procurement official in making the evaluation pursuant to subsection (3)(b) of this section. The rules shall provide: (I) Criteria for objectively measuring prices for enhancements, options, or alternatives to a bid, including relevant formulas or guidelines; (II) Criteria for objectively determining whether the prices for enhancements, options, or alternatives provide the best value at the lowest cost to the state. (4) The contract shall be awarded with reasonable promptness by written notice to the bidder whose bid provides for a contract with the best value at the lowest cost to the state.

C.R.S. § 24-103-202.5 Low tie bids - award procedure and determination - bid preference

24-103-202.5. Low tie bids - award procedure and determination - bid preference. (Repealed)

C.R.S. § 24-103-203 Requests for proposals

24-103-203. Requests for proposals. (1) A contract may be entered into by requests for proposals. Requests for proposals may be used for the procurement of professional services. The executive director may provide by rule that it is neither practicable nor advantageous to the state to procure specified types of supplies, services, or construction by an invitation for bids. (2) Proposals shall be solicited through a request for proposals. (3) Adequate public notice of the request for proposals shall be given in the same manner as provided in section 24-103-202 (3). (4) Repealed. (5) The request for proposals shall state evaluation factors. (6) As provided in the request for proposals and pursuant to rules, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for an award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors. (7) The award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the state, taking into consideration the price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. No property interest of any nature shall accrue until the contract is awarded and signed by both parties. (8) The procurement official, or his or her designee, shall negotiate, in the case of procurement of professional services, with the highest qualified offerors and in that negotiation shall take into account, in the following order of importance, the professional competence of the offerors, the technical merits of the offers, and the price for which the services are to be rendered.

C.R.S. § 24-103-204 Small purchases

24-103-204. Small purchases. Any procurement not exceeding the amount established by rule may be made in accordance with small purchase procedures established by rules, but procurement requirements shall not be artificially divided so as to constitute a small purchase under this section.

C.R.S. § 24-103-205 Sole source procurement

24-103-205. Sole source procurement. A contract may be awarded for a supply, service, or construction item without competition when, under rules, the executive director, the chief procurement officer, the procurement official, or a designee of any such officer determines in writing that there is only one source for the required supply, service, or construction item.

C.R.S. § 24-103-206 Emergency procurements

24-103-206. Emergency procurements. Notwithstanding any other provision of this code, the executive director, the chief procurement officer, the procurement official, or a designee of any such officer may make or authorize others to make emergency procurements when there exists a threat to public health, welfare, or safety under emergency conditions, as defined in rules, but such emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file.

C.R.S. § 24-103-206.5 Procurements funded with federal "American Recovery and Reinvestment Act of 2009" moneys - waiver of "Procurement Code" requirements - repeal

24-103-206.5. Procurements funded with federal "American Recovery and Reinvestment Act of 2009" moneys - waiver of "Procurement Code" requirements - repeal. (Repealed)

C.R.S. § 24-103-207 State purchases of recycled paper and recycled products

24-103-207. State purchases of recycled paper and recycled products. (Repealed)

C.R.S. § 24-103-207.5 Purchasing preference for environmentally preferable products - definitions

24-103-207.5. Purchasing preference for environmentally preferable products - definitions. (Repealed)

C.R.S. § 24-103-208 Other procurement methods

24-103-208. Other procurement methods. The executive director may establish, by rule, other competitive procurement methods that are deemed to be in the best interest of the state and that are consistent with the provisions of section 24-101-102, including, but not limited to, reverse auctions. For the 2004-05 fiscal year and every other fiscal year thereafter, the state auditor shall review the competitive procurement methods established pursuant to this section.

C.R.S. § 24-103-209 Purchase of compost by governmental bodies - definitions

24-103-209. Purchase of compost by governmental bodies - definitions. (Repealed)

C.R.S. § 24-103-210 Use of foreign-produced goods - iron, steel, and related manufactured products - disclosure - report - definitions

24-103-210. Use of foreign-produced goods - iron, steel, and related manufactured products - disclosure - report - definitions. (Repealed)

C.R.S. § 24-103-211 Service-disabled veteran owned small businesses - state procurement set aside - definitions

24-103-211. Service-disabled veteran owned small businesses - state procurement set aside - definitions. (Repealed)

C.R.S. § 24-103-301 Cancellation of invitations for bids or requests for proposals

24-103-301. Cancellation of invitations for bids or requests for proposals. An invitation for bids, a request for proposals, or any other solicitation may be canceled or any or all bids or proposals may be rejected in whole or in part at any time before a contract is executed when it is in the best interests of the state pursuant to rules. The reasons therefor shall be made part of the contract file but shall remain confidential and shall not be subject to the provisions of the "Colorado Open Records Act", part 2 of article 72 of this title 24, for the lesser of six months or until the contract at issue is awarded.

C.R.S. § 24-103-401 Responsibility of bidders and offerors

24-103-401. Responsibility of bidders and offerors. (1) A written determination of nonresponsibility of a bidder or offeror shall be made pursuant to rules. The unreasonable failure of a bidder or offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to such bidder or offeror. (2) Information furnished by a bidder or offeror pursuant to this section shall not be disclosed outside of the department of personnel or the purchasing agency without prior written consent by the bidder or offeror.

C.R.S. § 24-103-402 Prequalification of suppliers

24-103-402. Prequalification of suppliers. Prospective suppliers may be prequalified for particular types of supplies, services, and construction, and the method of compiling and soliciting from lists of potential contractors may be used pursuant to rules.

C.R.S. § 24-103-403 Cost or pricing data

24-103-403. Cost or pricing data. (1) A contractor shall, except as provided in subsection (3) of this section, submit cost or pricing data and shall certify that, to the best of his or her knowledge and belief, the cost or pricing data submitted was accurate, complete, and current as of a mutually determined specified date prior to the date of: (a) The pricing of any contract awarded by requests for proposals as specified in section 24-103-203, or pursuant to the sole source procurement authority as specified in section 24-103-205, where the total contract price is expected to exceed an amount established by rule; or (b) The pricing of any contract modification which is expected to exceed an amount established by rule. (2) Repealed. (3) The requirements of this section need not be applied to any contract in which: (a) The contract price is based on adequate price competition; (b) The contract price is based on established catalog prices or market prices; (c) The contract price is set by law or rule; or (d) It is determined in writing, pursuant to rules, that the requirements of this section may be waived and the reasons for such waiver are stated in writing.

C.R.S. § 24-103-502 Approval of accounting system

24-103-502. Approval of accounting system. (Repealed)

C.R.S. § 24-103-701 Finality of determinations

24-103-701. Finality of determinations. The determinations required by this code are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law.

C.R.S. § 24-103-702 Reporting of anticompetitive practices

24-103-702. Reporting of anticompetitive practices. When for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors, a notice of the relevant facts shall be transmitted to the attorney general.

C.R.S. § 24-103-801 Legislative declaration

24-103-801. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) It is in the best interest of the state to enhance the dignity and capacity for self-support of all persons with severe disabilities and to minimize their dependence on government programs for their basic needs; and (b) It benefits the state as well as all persons with severe disabilities to encourage and assist all persons with severe disabilities to achieve maximum personal independence through useful and productive gainful employment by identifying a market for the services that they can offer. (2) The general assembly further finds and declares that the purpose of this part 8 is to create a set aside program for nonprofit agencies that employ any persons with severe disabilities and to allow nonprofit agencies to bid on certain types of services solicitations. In furtherance of this purpose, the general assembly recognizes that it is in the best interests of all persons with severe disabilities that the employment options created pursuant to this part 8 expand the opportunities for all persons with severe disabilities to work in integrated employment settings.

C.R.S. § 24-103-802 Definitions

24-103-802. Definitions. As used in this part 8, unless the context otherwise requires: (1) "Bundling" means a state agency consolidating two or more solicitations for services previously provided or performed under separate smaller contracts into a single solicitation that is likely to be unsuitable for award to a nonprofit agency due to any of the following: (a) The diversity, size, or specialized nature of the elements of the required services; (b) The aggregate dollar value of the anticipated award; or (c) The geographical dispersion of the contract performance sites. (2) "Department" means the department of human services. (3) "Nonprofit agency" means a private nonprofit organization established under the laws of the United States or this state that is operated in this state in the interest of persons with severe disabilities or that specializes in services for persons with severe disabilities, the net income of which does not benefit in whole or in part any shareholder or officer. (4) "Self-certified vendor" means a nonprofit agency that has applied and been approved by the department to bid on certain services solicitations pursuant to this part 8. (5) "Services solicitation" means a solicitation by a state agency for the furnishing of labor, time, or effort by a contractor not involving the delivery of a specific end product other than products that are merely incidental to the required performance. (6) "Severe disability" means one or more physical or mental disabilities that constitute a substantial impairment to employment and that are of such a nature as to require multiple vocational rehabilitation services over an extended period. (7) "State agency" means any state office, department, commission, institution, or bureau, or any agency, division, or unit within a department or office. Notwithstanding the provisions of section 24-101-105, "state agency" shall include each institution of higher education and the Colorado commission on higher education. "State agency" shall not include any municipality, county, school district, special district, or any other local government in the state.

C.R.S. § 24-103-803 Nonprofit agencies - self-certified vendor list - creation

24-103-803. Nonprofit agencies - self-certified vendor list - creation. (1) Any nonprofit agency that is interested in performing state services and that would like to bid on solicitations for such services through the set aside program created in this part 8 shall first apply to the department, in a manner to be determined by the department, to become a self-certified vendor pursuant to this section. (2) The department shall accept applications from any nonprofit agency that seeks to become a self-certified vendor to bid on certain services solicitations. In order for a nonprofit agency to become a self-certified vendor, the nonprofit agency shall certify that: (a) The nonprofit agency is an independent tax-exempt charitable or social welfare organization operating under section 501 (c)(3) of the federal "Internal Revenue Code of 1986", as amended, and is operating in Colorado; (b) Repealed. (c) The nonprofit agency satisfies the statutory requirements to be eligible to bid on a state services solicitation pursuant to section 24-103-401 and any rules promulgated by the department of personnel in furtherance of said section; (d) The nonprofit agency would be capable of hiring and would employ people to perform any service for which the nonprofit agency bids, and that of those people employed a total of seventy-five percent would be persons with severe disabilities and a minimum of twenty percent would be persons with severe disabilities who have developmental disabilities as defined in section 25.5-10-202, C.R.S.; and (e) Any other criteria consistent with the purposes of this part 8 that are deemed necessary by the department. (3) The department shall create and maintain a list of all nonprofit agencies that have attained self-certified vendor status and shall make the list available to the department of personnel pursuant to rules promulgated by the executive director. (4) A nonprofit agency's self-certified vendor status is valid for up to five years after the date that the nonprofit agency's self-certification application was approved. A nonprofit agency is required to reapply to the department, at a time and in a manner determined by the department, for self-certified vendor status to be eligible to respond to a set aside solicitation pursuant to this part 8. (5) (a) Nothing in this part 8 shall be construed to require a nonprofit agency that seeks to respond to services solicitations to become a self-certified vendor; except that a nonprofit agency shall not be eligible to bid for a set aside solicitation pursuant to this part 8 unless the nonprofit agency is self-certified pursuant to this section. (b) Nothing in this part 8 shall be construed to prevent a nonprofit agency from bidding on any state agency solicitation that is not a set aside solicitation pursuant to this part 8.

C.R.S. § 24-103-804 Services solicitations - categorical identification

24-103-804. Services solicitations - categorical identification. (1) (a) The department of personnel shall publish a list of the services that state agencies seek through services solicitations and shall make the list available to nonprofit agencies on an annual basis. The executive director shall promulgate rules regarding the process for review, determinations, and publication of a list that shall be referred to as the services set aside list. (b) (Deleted by amendment, L. 2017.) (2) and (3) (Deleted by amendment, L. 2017.)

C.R.S. § 24-103-805 Contract set asides - bid process created by department of personnel - obligation of state agencies - rules

24-103-805. Contract set asides - bid process created by department of personnel - obligation of state agencies - rules. (1) (a) Any state agency that intends to solicit bids for a service that is included on the services set aside list created pursuant to section 24-103-804 shall first solicit bids from self-certified vendors for such service and shall follow the procedures specified in rules promulgated by the executive director. (b) If two or more self-certified vendors bid on the solicitation for the services, the procurement official shall award a contract to one of the self-certified vendors based on which acceptable response is most advantageous to the state taking into consideration factors other than price alone. (c) If one self-certified vendor bids on the solicitation for the services, the procurement official shall award a contract to the self-certified vendor and shall ensure that the contract is awarded at a fair and reasonable price of up to fifteen percent above the fair market value of the services, subject to available appropriations. (d) If the state agency does not receive a bid from any self-certified vendor for the services, the state agency is permitted to procure the services through other approved procurement methods and shall not be subject to the requirements of this part 8 for that specific solicitation. (2) The department of personnel shall, within one hundred eighty days after August 5, 2008, establish a process whereby any state agency that intends to solicit bids for a service that is included on the services set aside list created pursuant to section 24-103-804 may solicit bids solely from self-certified vendors. (3) Any state agency that has awarded a solicitation for services to a self-certified vendor pursuant to paragraph (a) or (b) of subsection (1) of this section shall, before the expiration of the term of the contract, renegotiate a fair and reasonable price for the services with the self-certified vendor that has performed the services for the state agency. The state agency is not permitted to solicit new bids for the services performed by the self-certified vendor unless one of the following occurs: (a) The nonprofit agency that is the self-certified vendor no longer wishes to perform the services for the state agency; (b) The state agency decides to perform the services internally and hires employees who will be employees of the state to perform the services; (c) The state agency no longer needs the service that was provided by the self-certified vendor; or (d) The self-certified vendor has not met the requirements for the services offered. (4) Any state agency that is required to solicit bids for a service that is included on the services set aside list is prohibited from bundling the service with one or more other services not included on the services set aside list before soliciting bids from self-certified vendors pursuant to this section. If the state agency has not received a bid from any self-certified vendor and is therefore authorized to procure the services through other approved procurement methods, the bundling prohibition shall no longer apply to the state agency for that specific solicitation for services. (5) The department of personnel may promulgate rules to implement the requirements of this section pursuant to section 24-102-101. Such rules shall be promulgated in accordance with the provisions of article 4 of this title 24. re the services through other approved procurement methods, the bundling prohibition shall no longer apply to the state agency for that specific solicitation for services. (5) The department of personnel may promulgate rules to implement the requirements of this section pursuant to section 24-102-101. Such rules shall be promulgated in accordance with the provisions of article 4 of this title 24. (6) Any self-certified vendor that has been awarded a solicitation for services by a state agency pursuant to this part 8 shall report to the chief procurement officer regarding the progress of the award and the contract in a manner and frequency to be determined by the chief procurement officer. The vendor shall include in the report the percentage of the total contract price that it will spend on the salary or wages of the employees hired to perform the services solicitation, not including the salary or wages for administrative staff or employees. (7) Any self-certified vendor pursuant to this part 8 must maintain the requirements to be a self-certified vendor pursuant to section 24-103-803 (2) for the duration of the services set aside list and for the entire term of any contract resulting from the services set aside list.

C.R.S. § 24-103-806 Compliance with state and federal laws

24-103-806. Compliance with state and federal laws. Any self-certified vendor that is awarded a solicitation for services pursuant to this part 8 is required to comply with state and federal laws regarding employee compensation, employee protections, workers' compensation, and workplace safety.

C.R.S. § 24-103-901 Procurement preferences and goals

24-103-901. Procurement preferences and goals. The procurement preferences and goals specified in this part 9 apply to the award of contracts under this code.

C.R.S. § 24-103-902 Low tie bids - award procedure and determination - bid preference

24-103-902. Low tie bids - award procedure and determination - bid preference. (1) If low tie bids are received in response to an invitation for bids for a supply contract, the following procedures are required: (a) If the low tie bids are from a resident bidder and a nonresident bidder, the resident bidder shall be given preference over the nonresident bidder; (b) If the low tie bids are from resident bidders, the procurement agent shall: (I) Use a fair and reasonable procedure for determining which bidder receives the contract award that at a minimum provides for the presence, at the time and place the determination is made, of the bidders or the bidders' representatives and an impartial witness designated by the procurement agent who is not an employee of that procurement agent's agency; and (II) Give the bidders at least five business days' written notice by certified mail of the date the determination will be made, of the procedure for making the determination, and that the bidders or the bidders' representatives may be present when the determination is made; (c) If the low tie bids are only from nonresident bidders, the procurement agent shall follow the procedures in subsections (1)(b)(I) and (1)(b)(II) of this section; (d) All other applicable provisions of the code that are not inconsistent with this section shall be followed. (2) If the procurement agent determines that compliance with this section will cause denial of federal moneys that would otherwise be available or would otherwise be inconsistent with federal law, this section shall be suspended, but only to the extent necessary to prevent denial of the moneys or to eliminate the inconsistency with federal law.

C.R.S. § 24-103-903 State purchases of recycled paper and recycled products - definitions

24-103-903. State purchases of recycled paper and recycled products - definitions. (1) When purchasing paper and paper products, any procurement agent shall, whenever the price is competitive and the quality adequate for the purpose intended, purchase recycled paper, as defined in section 13-1-133 (4)(d). (2) For the fiscal year 1990-91, the executive director shall establish as a goal that at least ten percent of the total volume of paper and paper products purchased by the state shall contain recycled paper. The goal shall increase to twenty percent for the fiscal year 1991-92, to thirty percent for the fiscal year 1992-93, to forty percent for the fiscal year 1993-94, and to fifty percent for the fiscal year 1994-95, and for each fiscal year thereafter. (3) Each agency using recycled paper may print the notation "printed on recycled stock" on any paper or paper product which has been certified by the division as recycled paper. (4) For purposes of this section, "paper and paper products" means paper items, including but not limited to paper napkins, towels, corrugated and other cardboard, toilet tissue, high-grade office paper, newsprint, offset paper, bond paper, xerographic bond paper, mimeo paper, and duplicator paper. (5) When purchasing any product with public funds, any procurement agent shall be authorized to purchase products or materials with recycled content, that have been source-reduced, that are reusable, or that have been composted, unless one or more of the following conditions exist: (a) The product is not available within a reasonable period of time; (b) The product fails to meet existing purchasing rules, including specifications; or (c) The product fails to meet federal or state health or safety standards, as set forth in the code of federal regulations or the Colorado code of regulations. (6) In addition to the requirements set forth in subsections (1), (2), and (5) of this section, the procurement agent shall be authorized to purchase, when cost-efficient and economically feasible, equipment that results in the reduction of paper usage.

C.R.S. § 24-103-904 Purchasing preference for environmentally preferable products - definitions

24-103-904. Purchasing preference for environmentally preferable products - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Environmentally preferable products" means products, including products that do not contain intentionally added PFAS chemicals, that have a lesser or reduced adverse effect on human health and the environment when compared with competing products that serve the same purpose. The product comparison may consider such factors as the availability of any raw materials used in the product being purchased and the availability, use, production, safe operation, maintenance, packaging, distribution, disposal, or recyclability of the product being purchased. (b) "Intentionally added PFAS chemicals" has the meaning set forth in section 25-15-603 (12). (2) All invitations for bids for products shall include language that describes the availability of the purchasing preference for environmental products. In connection with the purchase of products, a governmental body shall award the contract to a bidder who offers environmentally preferable products subject to the conditions specified in subsection (3) of this section unless the specifications used in the solicitation contain environmentally preferable product criteria. This preference does not apply to the purchase of services, including construction services. (3) The preference specified in subsection (2) of this section shall apply only if all of the following conditions are met and selecting an environmentally preferable product would not otherwise be disadvantageous to the state upon consideration of these conditions, singly or in combination: (a) The quality of the environmentally preferable products meets the specification of the bid. (b) The environmentally preferable products are suitable for the use required by the purchasing entity. (c) Any bidder able to offer environmentally preferable products is able to supply such products in sufficient quantity, as indicated in the invitation for bids. (d) The bid price for environmentally preferable products does not exceed the lowest bid price for products that are not environmentally preferable by more than five percent. (e) The head of the governmental body or other official charged by law with the duty to purchase products has made a determination that the governmental body is able to purchase the environmentally preferable products out of the governmental body's existing budget without any further supplemental or additional appropriation. (4) If the bid price for environmentally preferable products exceeds the bid price for products that are not environmentally preferable by more than five percent, a governmental body may award the contract to a bidder who offers environmentally preferable products where the governmental body demonstrates, on the basis of assessments such as the costs of ownership and a life-cycle analysis, that long-term savings to the state will result from environmentally preferable purchasing in accordance with the requirements of this section. Nothing in this section shall require that a governmental body perform an analysis of the costs of ownership or a life-cycle analysis in connection with the purchase of any products. of assessments such as the costs of ownership and a life-cycle analysis, that long-term savings to the state will result from environmentally preferable purchasing in accordance with the requirements of this section. Nothing in this section shall require that a governmental body perform an analysis of the costs of ownership or a life-cycle analysis in connection with the purchase of any products. (5) (a) Any bidder that seeks to qualify for the preference created by subsection (2) of this section shall provide documentation to the governmental body inviting the bid that the products offered by the bidder are environmentally preferable. This requirement may be satisfied by submission of any of the following: (I) A life-cycle analysis conducted on the applicable product that has been conducted in accordance with applicable standards as determined by the purchasing governmental body or by the international organization for standardization or any successor organization; (II) A reference to an existing environmentally preferable product list maintained by a state or the federal government that contains the product; or (III) A reference to a nationally recognized third-party certification entity that has certified the product as environmentally preferable on the basis of a valid life-cycle analysis. The governor's energy office or successor office shall maintain a list of certification entities. (b) The governmental body may rely in good faith on any form of documentation that satisfies the requirement of subsection (5)(a) of this section. (c) Notwithstanding any other provision of this section, if none of the forms of documentation specified in subsection (5)(a) of this section apply to the product being purchased, the requirements of this section shall not apply to the purchase of the product. (6) In connection with any cost of ownership analysis or life-cycle analysis undertaken in connection with any purchase under this section of a product that involves the replacement of existing electrical, natural gas, or steam service, the cost analysis shall consider any stranded utility costs.

C.R.S. § 24-103-905 Service-disabled veteran-owned small businesses - state procurement preference - definitions

24-103-905. Service-disabled veteran-owned small businesses - state procurement preference - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Service-disabled veteran-owned small business" means a business that is: (I) Incorporated or organized in the state or that is maintaining a place of business or office in the state; and (II) Officially registered and verified as a service-disabled veteran-owned small business by the center for verification and evaluation within the appropriate United States agency. (b) "State agency" means a principal department of the executive branch of state government as specified in section 24-1-110, including any division, office, agency, or other unit created within a principal department, including institutions of higher education and the Colorado commission on higher education; except that "state agency" does not include those entities that have elected to be exempt from the code pursuant to section 24-101-105 (1)(b). (2) In awarding all contracts that are subject to this code, the state shall have the goal of awarding at least three percent of all such contracts, by dollar value, to service-disabled veteran-owned small businesses. To satisfy this goal, a state agency may grant a preference for service-disabled veteran-owned small businesses. (3) When a state agency intends to award a contract to a business in furtherance of the three percent goal specified in subsection (2) of this section, the state agency shall, prior to awarding the contract, require the business to submit to the agency documentation from the appropriate United States agency that verifies that the business is a service-disabled veteran-owned small business. (4) On or before September 30, 2015, and on or before September 30 each year thereafter, the executive director shall submit a report regarding the state's progress in satisfying the three percent goal established in this section to the department of military and veterans affairs, the members of the Colorado board of veterans affairs, and to the members of the committees of the house of representatives and the senate that have jurisdiction over state affairs and veterans affairs. The report shall include the following: (a) The total number of contracts that all state agencies awarded to service-disabled veteran-owned small businesses in the prior fiscal year and the number of such contracts that each state agency awarded; (b) The total dollar amount of contracts that all state agencies awarded to service-disabled veteran-owned small businesses in the prior fiscal year and the percentage that such dollar amount bears to the total dollar amount of contracts awarded by all state agencies in the prior fiscal year; and (c) The total dollar amount of contracts that each state agency awarded to service-disabled veteran owned small businesses in the prior fiscal year and the percentage that such dollar amount bears to the total dollar amount of contracts awarded by the state agency in the prior fiscal year.

C.R.S. § 24-103-906 Bid preference - state contracts

24-103-906. Bid preference - state contracts. (1) (a) Except as provided in subsection (1)(b) of this section and in section 24-103-907, when a contract for commodities or services is to be awarded to a bidder, a resident bidder shall be allowed a preference against a nonresident bidder equal to the preference given or required by the state in which the nonresident bidder is a resident. (b) Notwithstanding subsection (1)(a) of this section, when an invitation for bids for a contract for the purchase of commodities results in a low tie bid, the provisions of section 24-103-902 apply. (c) For the purposes of this subsection (1), "commodities" includes supplies as defined in section 24-101-301 (47). (2) If it is determined by the procurement agent responsible for awarding the bid that compliance with this section may cause denial of federal moneys which would otherwise be available or would otherwise be inconsistent with requirements of federal law, this section shall be suspended, but only to the extent necessary to prevent denial of the moneys or to eliminate the inconsistency with federal requirements.

C.R.S. § 24-103-907 Preference for state agricultural products

24-103-907. Preference for state agricultural products. (1) When purchasing agricultural products, a governmental body shall award the contract to a resident bidder who produces products in the state, subject to the conditions in subsection (2) of this section. (2) The preference in subsection (1) of this section shall apply only if the following conditions are met: (a) The quality of available products produced in the state is equal to the quality of products produced outside the state; (b) Available products produced in the state are suitable for the use required by the purchasing entity; (c) The resident bidder is able to supply products produced in the state in sufficient quantity, as indicated in the invitation for bids; and (d) (I) The resident bidder's bid or quoted price for products produced in the state does not exceed the lowest bid or price quoted for products produced outside the state or the resident bidder's bid or quoted price reasonably exceeds the lowest bid or price quoted for products produced outside the state. (II) For purposes of this subsection (2)(d), "reasonably exceeds" shall occur when the head of the governmental body, or other public officer charged by law with the duty to purchase such products, at his or her sole discretion, determines such higher bid to be reasonable and capable of being paid out of that governmental body's existing budget, without any further supplemental or additional appropriation. (3) (a) For purposes of this section, an agricultural product is produced in the state if it is grown, raised, or processed in the state. (b) A resident bidder that seeks to qualify for the preference created by subsection (1) of this section shall certify to the governmental body inviting the bid and provide documentation confirming that the resident bidder's agricultural product was produced in the state. The governmental body may rely in good faith on such certification and documentation.

C.R.S. § 24-103-908 Bid preferences - resident bidder - public projects - report - federal and state law - definitions

24-103-908. Bid preferences - resident bidder - public projects - report - federal and state law - definitions. (1) As used in this section, unless the context otherwise requires, "public project" means: (a) Any public project as defined in section 24-92-102 (8), including any such project awarded by any county, including any home rule county, municipality, as defined in section 31-1-101 (6), school district, special district, or other political subdivision of the state; (b) Any publicly funded contract for construction entered into by a governmental body of the executive branch of this state which is subject to this code; and (c) Any highway or bridge construction, whether undertaken by the department of transportation or by any political subdivision of this state, in which the expenditure of funds may be reasonably expected to exceed fifty thousand dollars. (2) (a) When a construction contract for a public project is to be awarded to a bidder, a resident bidder shall be allowed a preference against a nonresident bidder from a state or foreign country equal to the preference given or required by the state or foreign country in which the nonresident bidder is a resident. (b) If it is determined by the procurement agent responsible for awarding the bid that compliance with this section may cause denial of federal moneys which would otherwise be available or would otherwise be inconsistent with requirements of federal law, this section shall be suspended, but only to the extent necessary to prevent denial of the moneys or to eliminate the inconsistency with federal requirements. (3) (a) The executive director of the department of personnel, or the executive director's designee, shall use a national registry of bidding preferences published by another state or national organization or shall conduct a survey and compile the results into a list of which states provide a bidding preference on public works contracts for their resident bidders. The list must include details on the type of preference provided by each state, the amount of the preference, and how the preference is applied. The executive director shall complete the initial list on or before July 1, 2014, shall update the list periodically as needed but at least on an annual basis, and shall make the list available to the public on the department's website. (b) In any bidding process for public works in which a bid is received from a bidder who is not a resident bidder and who is from a state that provides a percentage bidding preference to resident bidders of that state, a comparable percentage disadvantage shall be applied to the bid of that bidder. (c) Any request for proposals issued by a state agency or political subdivision of the state must include a notice to nonresident bidders that if the nonresident bidder is from a state that provides a bidding preference to bidders from that state, then a comparable percentage disadvantage will be applied to the bid of that nonresident bidder. The notice must also specify that the bidder may obtain additional information from the department of personnel's website. subdivision of the state must include a notice to nonresident bidders that if the nonresident bidder is from a state that provides a bidding preference to bidders from that state, then a comparable percentage disadvantage will be applied to the bid of that nonresident bidder. The notice must also specify that the bidder may obtain additional information from the department of personnel's website. (d) The executive director of the department of personnel may promulgate rules necessary for the implementation of this section. Such rules shall be promulgated in accordance with the "State Administrative Procedure Act", article 4 of this title 24. (4) Nothing in this section applies to any project that receives federal moneys. In addition, nothing in this section contravenes any existing treaty, law, agreement, or regulation of the United States. Contracts entered into in accordance with any treaty, law, agreement, or regulation of the United States do not violate this section to the extent of that accordance. The requirements of this section are suspended if such requirement would contravene any treaty, law, agreement, or regulation of the United States, or would cause denial of federal moneys or preclude the ability to access federal moneys that would otherwise be available.

C.R.S. § 24-103-909 Bid preference - recycled plastic products

24-103-909. Bid preference - recycled plastic products. (1) When a contract is to be awarded pursuant to this code, a bidder who has used recycled plastics in the manufacture of the commodity or supplies described in the bid shall be allowed a preference of up to five percent for finished products which contain no less than ten percent recycled plastics. (2) If it is determined by the procurement agent responsible for awarding a bid that compliance with this section may cause denial of federal moneys which would otherwise be available or would otherwise be inconsistent with requirements of federal law, this section shall be suspended, but only to the extent necessary to prevent denial of the moneys or to eliminate the inconsistency with federal requirements.

C.R.S. § 24-103-910 Use of foreign-produced goods - iron, steel, and related manufactured products - disclosure - report - definitions

24-103-910. Use of foreign-produced goods - iron, steel, and related manufactured products - disclosure - report - definitions. (1) The contractor for any public works project that is funded by a state agency as defined in section 24-30-1301 (17) or by a state institution of higher education as defined in section 24-30-1301 (18), that does not receive any federal moneys, and that costs more than five hundred thousand dollars shall, upon completion of the project, make a good faith effort to disclose to the department of personnel the five most costly goods incorporated into the project, including iron, steel, or related manufactured goods; except that, for public projects under the supervision of the department of transportation, the contractor shall disclose such information to the department of transportation. (2) (a) In the case of an iron or steel product, the product will be considered manufactured in the United States if all of the manufacturing processes for the final product take place in the United States. (b) In the case of a manufactured good, a good will be considered manufactured in the United States if all of the manufacturing processes for the final product take place in the United States irrespective of the origin of the manufactured good's subcomponents. (c) In order for a manufactured good to be considered subject to disclosure under this article 103, the product must be manufactured predominantly of steel or iron. The manufactured good is deemed a product manufactured predominantly of steel or iron if the product consists of more than fifty percent steel or iron content when it is delivered to the job site for installation. (3) The disclosure must state the total cost and country of origin of the five most costly goods used on a project, including iron, steel, and related manufactured goods described pursuant to subsections (1) and (2) of this section. The contractor may rely on documents provided by third-party vendors when disclosing the country of origin of iron, steel, or related manufactured goods. In addition, the disclosure must state whether the public works project was subject to any existing domestic content preference, including 41 U.S.C. secs. 8301 to 8305, 23 U.S.C. sec. 313, 49 U.S.C. sec. 5323, 49 U.S.C. sec. 24305, 49 U.S.C. sec. 24405, and 49 U.S.C. secs. 50101 to 50105. The contractor shall disclose the information in a manner to be determined by the department. (4) The department shall issue an annual report detailing the information that contractors submitted to the department and to the department of transportation pursuant to subsections (1) to (3) of this section. The report must include aggregate data collected for the calendar year and analysis of the data broken down by product and public works project type. The report shall not publicly disclose any proprietary information provided by the contractor that is not subject to disclosure pursuant to the "Colorado Open Records Act", part 2 of article 72 of this title 24. The department shall make the report available to the public on the department's website. (5) As used in this section, unless the context otherwise requires: (a) "Country of origin" shall have the meaning ascribed to it under 19 U.S.C. sec. 1304 and 19 CFR 134. (b) "Public works" shall have the same meaning as "public project" as defined in section 24-92-102 (8)(a). article 72 of this title 24. The department shall make the report available to the public on the department's website. (5) As used in this section, unless the context otherwise requires: (a) "Country of origin" shall have the meaning ascribed to it under 19 U.S.C. sec. 1304 and 19 CFR 134. (b) "Public works" shall have the same meaning as "public project" as defined in section 24-92-102 (8)(a). (c) "United States" means the United States of America and includes all territory, continental or insular, subject to the jurisdiction of the United States. (6) Nothing in this section applies to any project that receives federal moneys. In addition, nothing in this section contravenes any existing treaty, law, agreement, or regulation of the United States. Contracts entered into in accordance with any treaty, law, agreement, or regulation of the United States do not violate this section to the extent of that accordance. The requirements of this section are suspended if such requirements would contravene any treaty, law, agreement, or regulation of the United States, or would cause denial of federal moneys or preclude the ability to access federal moneys that would otherwise be available.

C.R.S. § 24-103-911 Preference for internet service providers that certify compliance with open internet protections - definitions

24-103-911. Preference for internet service providers that certify compliance with open internet protections - definitions. (1) When contracting for broadband internet access service, a governmental body shall give preference to an internet service provider that certifies to the governmental body that, except as allowed under section 40-15-209 (3), the internet service provider will not engage in any of the practices set forth in section 40-15-209 (1). (2) As used in this section: (a) "Broadband internet access service" has the meaning set forth in section 40-15-209 (4)(a). (b) "Internet service provider" has the meaning set forth in section 40-15-209 (4)(b).

C.R.S. § 24-103-1001 Legislative declaration

24-103-1001. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) It is imperative and the public policy of Colorado that the state procurement process be free from bias so that all qualified persons and entities may compete for state business; (b) A fair procurement process not only ensures justice and fairness in state contracting but will broaden the procurement contractor pool, which will result in efficiencies statewide and, as warranted, promote the growth of historically underutilized businesses, thereby creating jobs and stimulating the state's economy; (c) Although studies establishing discrimination in procurement for certain industries or in certain localities have been conducted, a comprehensive analysis of state contracts awarded to historically underutilized businesses has not yet been commissioned; (d) The United States supreme court has recognized that disparity studies are tools that seek to qualify and quantify past discrimination and recommend certain corrective measures as may be warranted by the study's findings; (e) If any disparities exist, such a study is essential to the ultimate achievement of a marketplace in which historically underutilized businesses are not subject to discrimination and can obtain a fair market share of contract expenditures; and (f) Therefore, it is the intent of the general assembly, consistent with the code's stated policies of ensuring the fair and equitable treatment of persons who deal with the procurement system and fostering effective broad-based competition within the free enterprise system, that an independent study be commissioned to: (I) Determine the frequency with which state contracts are awarded to historically underutilized businesses and the monetary amounts of such awards, compared to the frequency and size of contracts awarded to other businesses; and (II) To the extent that the study establishes that disparities attributable to past or present discrimination exist or inhere in the state procurement process, to recommend remedial measures to address the effects of that discrimination.

C.R.S. § 24-103-1002 Definitions

24-103-1002. Definitions. As used in this part 10, unless the context otherwise requires: (1) "Contract" has the same meaning as set forth in section 24-101-301 (9) and includes public-private partnerships and other agreements for public-private financing. (2) "Contractor" means any person who is a party to a contract. (3) "Historically underutilized business" means a business: (a) That is at least fifty-one percent owned by one or more individuals who are: (I) United States citizens or permanent resident aliens; and (II) One or more of the following: (A) Members of a racial or ethnic minority group; (B) Non-Hispanic Caucasian women; (C) Persons with physical or mental disabilities; or (D) Members of the lesbian, gay, bisexual, and transgender community; and (b) For which the minority ownership controls both the management and day-to-day business decisions. (4) "Persons with physical or mental disabilities" means persons who: (a) Have impairments that substantially limit one or more major life activities; (b) Are regarded generally by the community as having a disability; and (c) Whose disabilities substantially limit their abilities to engage in competitive business. (5) "Racial or ethnic minority group" means: (a) African American persons, meaning individuals having origins in any of the black racial groups; (b) Hispanic American persons, including persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; (c) Asian American persons, including persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, the United States territories of the Pacific, or the Northern Mariana Islands; or persons whose origins are from subcontinent Asia, including persons whose origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal; or (d) Native American persons, including persons who are American Indians, Eskimos, Aleuts, or Hawaiians of Polynesian descent. (6) "Subcontractor" means any person who is a party to a contract with a contractor.

C.R.S. § 24-103-1003 Disparity study - report

24-103-1003. Disparity study - report. (1) (a) The executive director shall commission a state disparity study regarding the participation of historically underutilized businesses in state contracts entered into by all principal departments of the executive branch of state government as specified in section 24-1-110, including any division, office, agency, or other unit created within a principal department and including institutions of higher education and the Colorado commission on higher education; except that the study shall not include those entities that have elected to be exempt from the code pursuant to section 24-101-105 (1)(b). The study shall include state contracts entered into during the 2014-15, 2015-16, 2016-17, and 2017-18 state fiscal years. (b) (I) The study must be conducted, and a final report prepared, by an entity independent of the department that is selected in response to a request for proposal issued in accordance with this code. (II) The entities subject to the study pursuant to subsection (1)(a) of this section shall cooperate fully with the independent contractor engaged to conduct the study. (c) The study and final report setting forth the study's methodologies, findings, and recommendations must be provided by December 1, 2020, to: (I) The members of the general assembly; and (II) The executive director, who shall transmit a copy of the disparity study final report produced pursuant to this section to the director of the minority business office created in section 24-49.5-102, which shall post the report on that office's official website. (d) The executive director or the executive director's designee shall include the findings and recommendations from the final report required by subsection (1)(c) of this section in its report to the applicable house and senate committees of reference required by the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act", part 2 of article 7 of title 2. (2) (a) The purposes of the disparity study undertaken pursuant to this section are: (I) To determine whether there is a disparity between the number of qualified historically underutilized businesses that are ready, willing, and able to perform state contracts for goods and services, and the number of such contractors actually engaged to perform such contracts, which information must be ascertained by evaluating the prime contracts and subcontracts awarded in the following industries: (A) Construction, including new construction, remodeling, renovation, maintenance, demolition and repair of any public structure or building, pipeline construction, and other public improvements; (B) Architecture and engineering, including construction management, landscape architecture, planning, surveying, mapping services, and design, build, and construction services; (C) Professional services, including legal services, accounting, information technology services, medical services, technical services, research planning, and consulting services; (D) Brokerage and investment, including banking, asset management, state retirement, and pension services; and (E) Goods and services that may be provided or performed without professional licensure or special education or training, including, but not limited to, goods and services relating to materials, supplies, equipment, maintenance, personnel, pharmaceuticals, and food; (II) To determine whether, of the total amount spent on state contracts in a fiscal year, there is a disparity between the percentage of spending attributable to contracts awarded to qualified historically underutilized businesses and the percentage of state contracts that were awarded to historically underutilized businesses in that fiscal year; and (III) To determine what changes, if any, should be made to state policies affecting historically underutilized businesses. fiscal year, there is a disparity between the percentage of spending attributable to contracts awarded to qualified historically underutilized businesses and the percentage of state contracts that were awarded to historically underutilized businesses in that fiscal year; and (III) To determine what changes, if any, should be made to state policies affecting historically underutilized businesses. (b) The disparity study must specifically include the following analyses, both for the historically underutilized businesses as a group and for each subgroup, as set forth in section 24-103-1002 (3)(a)(II): (I) A prime contractor utilization analysis that presents the distribution of prime contracts by industry; (II) A subcontractor utilization analysis that presents the distribution of subcontracts by the industries described in subsection (2)(a)(I) of this section; (III) A market area analysis that presents the legal basis for the geographical market area determination and defines the state's market area; (IV) A prime contractor and subcontractor availability analysis that presents the distribution of available businesses in the state's market area; (V) A prime contractor disparity analysis that presents prime contractor utilization compared to prime contractor availability by industry and determines whether the comparison is statistically significant; (VI) A subcontractor disparity analysis that presents subcontractor utilization compared to subcontractor availability by industry and determines whether the comparison is statistically significant; (VII) A qualitative analysis that presents the business community's experiences and perceptions of barriers encountered in contracting or attempting to contract with the state; and (VIII) Recommendations regarding best management practices and ways to enhance Colorado's contracting and procurement activities with historically underutilized businesses. (c) (I) Any conclusion that discrimination-related disparity exists between the availability and utilization of historically underutilized businesses must be supported by statistical evidence and may be supplemented or supported by anecdotal evidence. (II) If the analysis supports a finding that such disparity exists, the report must include recommendations to address the disparity, including any statutory changes likely to cure, mitigate, or redress such disparity. Any proposed remedial measures must be tailored to address documented statistical disparities in procurement policies. (3) The general assembly may annually appropriate to the department of personnel such amount as it deems appropriate for the purposes specified in this part 10. Any unexpended and unencumbered money from an appropriation made for the purposes of this part 10 remains available for expenditure by the department for the purposes of this part 10 in the next fiscal year without further appropriation.

C.R.S. § 24-103-1004 Requests for information - disparity study

24-103-1004. Requests for information - disparity study. The executive director or the entity that the executive director commissions to conduct a disparity study pursuant to section 24-103-1003 may request information in furtherance of the disparity study from each entity that is subject to the study, including each principle department of the executive branch of state government as specified in section 24-1-110, including any division, office, agency, or other unit created within a principle department, and including institutions of higher education and the Colorado commission on higher education; except that such requests may not be made of entities that have elected to be exempt from the code pursuant to section 24-101-105 (1)(b). Each entity that is subject to the disparity study shall respond to any such request for information in furtherance of the disparity study as soon as practicable after receiving the request.

C.R.S. § 24-103-1101 Short title

24-103-1101. Short title. The short title of this part 11 is the "State Procurement Disparities Remediation Act".

C.R.S. § 24-103-1102 Legislative declaration

24-103-1102. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) When it enacted Senate Bill 19-135 in 2019, it found, determined and declared, in section 24-103-1001, the importance of ensuring an equitable state procurement process; (b) As required by Senate Bill 19-135, the department contracted with an entity independent of the department to conduct a state disparity study regarding the participation of historically underutilized businesses, which included a review of minority-owned businesses, women-owned businesses, businesses owned by persons with disabilities, and businesses owned by members of the lesbian, gay, bisexual, and transgender community, in state contracts entered into by any department, agency, or institution of the executive branch of state government; (c) The state disparity study examined whether a disparity exists between the percentage of state contract dollars going to historically underutilized businesses and the percentage that might be expected to go to those businesses based on the relative number of those businesses that are ready, willing, and able to perform different types, sizes, and locations of state contracts; (d) The independent entity completed the required state disparity study and issued the "2020 state of Colorado disparity study final report" in November 2020, which found that: (I) Minority-owned and women-owned businesses received about eight percent of state contract dollars, below the twenty-eight percent expected from the availability analysis; (II) Utilization of firms owned by persons with disabilities was less than one percent of contract dollars, below the twelve percent expected from the availability analysis; (III) A very small percentage of contract dollars went to businesses certified as being owned by members of the lesbian, gay, bisexual, and transgender community (LGBT-certified businesses), but because a very small number of businesses in the availability analysis were LGBT-certified businesses, that utilization is comparable to the availability benchmark for LGBT-certified businesses; (IV) There was a substantial disparity between utilization and availability for firms owned by African American persons, Hispanic American persons, Native American persons, white women, and persons with disabilities for state construction, construction-related professional services, other professional services, goods and other services contracts; (V) There was a substantial disparity for businesses owned by Asian-American persons for other professional services contracts; and (VI) For state brokerage and investment contracts, there were substantial disparities between utilization and availability of businesses owned by African American persons, Hispanic American persons, Native American persons, and white women; (e) As detailed in the state disparity study report, the results of the study indicate that disparities between availability of historically underutilized businesses and utilization of such businesses exists in state contracting; (f) Although the state is already endeavoring to help small businesses obtain state contracts, it is doing so with limited tools and resources; (g) The disparities identified in the state disparity report are likely to persist unless further action is taken; and (h) The state disparity study report recommended that the general assembly consider enacting legislation to authorize and fund a procurement equity program to address the specific disparities shown in the state disparity study report for historically underutilized businesses based on industry and business ownership.

C.R.S. § 24-103-1103 Definitions

24-103-1103. Definitions. As used in this part 11, unless the context otherwise requires: (1) "Construction-related professional services" means services with architecture and engineering, surveying, real estate consulting, and related work. (2) "Disparity" means an inequality, difference, or gap between an actual outcome and a reference point or benchmark. (3) "Disparity index" means a measure of the relative difference between an outcome, such as percentage of contract dollars received by a group, and a corresponding benchmark, such as the percentage of contract dollars that might be expected given the relative availability of that group for those contracts. In this example, disparity index is calculated by dividing a numerator of percent utilization by a denominator of percent availability and then multiplying the result by 100. A disparity index of 100 indicates "parity" or utilization "on par" with availability. Disparity index figures closer to 0 indicate larger disparities between utilization and availability. (4) "Historically underutilized business" means an entity: (a) That is a business, for-profit corporation, sole proprietorship, partnership, or joint venture that is more than fifty percent owned by one or more individuals who are: (I) United States citizens or permanent resident aliens; and (II) One or more of the following: (A) Members of a racial or ethnic minority group; except that a business owned by Asian American persons is a historically underutilized business only with respect to state procurement for "other professional services contracts", as that term is defined in the state disparity study; (B) Non-Hispanic Caucasian women; or (C) Persons with disabilities; and (b) For which the minority ownership controls both the management and day-to-day business decisions. (5) "Industry" means businesses within one of the following economic sectors: (a) Construction; (b) Construction-related professional services; (c) Brokerage and investment; (d) Other professional services; and (e) Goods and other services. (6) "Minority business office" means the minority business office created in section 24-49.5-102. (7) "Office" means the office of economic development created in section 24-48.5-101 (1). (8) "Persons with disabilities" means persons who: (a) Have physical or mental impairments, or both, that substantially limit one or more major life activities; (b) Are regarded generally by the community as having a disability; and (c) Whose disabilities substantially limit their abilities to engage in competitive business. (9) "Prime contract" means a contract between the state and a business. (10) "Prime contractor" means a construction business that performs a prime contract for the state. (11) "Procurement technical assistance center" means the entity through which a procurement technical assistance program is provided. (12) "Procurement technical assistance program" has the same meaning as set forth in section 24-48.5-121 (2)(d). (13) "Professional services" means types of work in the service sector requiring special training. Some professional services such as accounting and law, require holding professional licenses. (14) "Program" means the state procurement equity program established in section 24-103-1104 (1). (15) "Racial or ethnic minority group" means individuals who belong to one or more racial or ethnic groups identified in 49 CFR Section 26.5: (a) African American persons, including persons having origins in any of the black racial groups of Africa; (b) Hispanic American persons, including persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; y group" means individuals who belong to one or more racial or ethnic groups identified in 49 CFR Section 26.5: (a) African American persons, including persons having origins in any of the black racial groups of Africa; (b) Hispanic American persons, including persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; (c) Asian American persons, including persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, the United States territories of the Pacific, or the Northern Mariana Islands; or persons whose origins are from subcontinent Asia, including persons whose origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal; or (d) Native American persons, including persons who are American Indians, Eskimos, Aleuts, or Hawaiians of Polynesian descent. (16) "Remedial measure" means an action designed to address barriers to full participation of a targeted group. (17) "Small business" means a business that qualifies as a small business pursuant to 13 CFR 121. (18) "Small business development center" has the same meaning as set forth in section 24-48.5-121 (2)(f). (19) "Solicitation assistance" means the provision of real-time responses to questions asked by potential contractors who seek guidance as to how best to respond to solicitations for state contracts, including guidance regarding availability of opportunities, interpretation of solicitation documents, and solicitation response procedures and best practices. "Solicitation assistance" does not include guidance specific to a particular solicitation for a state contract that could reasonably be expected to provide an unfair advantage to the potential contractor over other potential contractors responding to the solicitation. (20) "State disparity study" or "study" means the study regarding the participation of historically underutilized businesses in state contracts entered into by all principal departments of state government that was commissioned by the executive director as required by section 24-103-1003. (21) "State disparity study report" or "report" means the "2020 State of Colorado Disparity Study Final Report" published in November 2020. (22) "Subcontractor" means any person who is a party to an agreement with a prime contractor for the purpose of performing a portion of the work that the prime contractor is obliged to perform or have performed under a contract. (23) "Substantial disparity" means a disparity where the disparity index is less than 80, which can indicate evidence of discrimination affecting the outcome. (24) "Utilization" means the percentage of total contract dollars of a particular type of work going to a specific group of businesses. (25) "Women-owned business" or "WBE" means a business that is at least fifty-one percent owned and controlled by one or more individuals that are non-minority women.

C.R.S. § 24-103-1104 State procurement equity program - established - goal - preliminary implementation maximization of contracting opportunities - expansion of historically underutilized business registry - real-time solicitation assistance help desk - bond assistance program - cash fund - report

24-103-1104. State procurement equity program - established - goal - preliminary implementation maximization of contracting opportunities - expansion of historically underutilized business registry - real-time solicitation assistance help desk - bond assistance program - cash fund - report. (1) (a) The state procurement equity program is established in the department. The department, in accordance with its existing state procurement related duties of promulgating state contracting fiscal rules and providing procurement related guidance and management, including contract forms and the contract management system, to most state executive branch agencies, shall act to ensure the expeditious development and full implementation of the program as required by this part 11. The department shall act in consultation with, to the extent required by this part 11 or as otherwise deemed necessary or advisable by the department, the office, the procurement technical assistance center, the small business development center, the minority business office, the department of transportation, and other persons or entities that have expertise or interest in procurement generally or in state procurement equity. (b) The goal of the program is to reduce disparities identified in the state disparity study report between the availability of historically underutilized businesses and the utilization of such businesses in state procurement. (2) As implementation of the program, the department shall: (a) Provide, at all times during regular state business hours, solicitation assistance through a help desk. The department shall track usage of solicitation assistance and, to the extent feasible, follow up with recipients of solicitation assistance to determine and track the extent to which they have succeeded in being awarded state contracts. The department shall also continuously monitor usage of the solicitation assistance help desk to determine whether the amount of human and financial resources dedicated to the provision of solicitation assistance is optimal to meet demand while stewarding state resources. (b) (I) Create a bond assistance program to help historically underutilized businesses that are small businesses to offset all or a portion of the cost of obtaining a surety bond that is required for a solicitation for a state procurement opportunity. (II) The bond assistance program cash fund is hereby created in the state treasury. The fund consists of general fund money transferred to the fund as required by subsection (2)(b)(III) of this section and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. Money in the fund is continuously appropriated to the department for the implementation of the bond assistance program. (III) On July 1, 2022, the state treasurer shall transfer two million dollars from the general fund to the bond assistance program cash fund. (c) Carefully consider all of the recommendations in the state disparity study report that are not required to be implemented pursuant to subsections (2)(a) to (2)(c) of this section to determine whether, using only existing resources, it can implement or make meaningful progress towards implementing any of the recommendations. If the department determines that it can implement or make meaningful progress towards implementing any such recommendation using only existing resources, it shall do so. (3) The department shall report to the general assembly regarding its preliminary implementation of the program during the department's January 2025 departmental presentation to legislative committees of reference required by section 2-7-203 (2)(a).

C.R.S. § 24-103-1105 State procurement equity program implementation - stakeholder group - recommendations - report - legislative declaration

24-103-1105. State procurement equity program implementation - stakeholder group - recommendations - report - legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) The state seeks recommendations from state procurement stakeholders, as convened pursuant to subsection (2) of this section for the implementation of remedial measures, including remedial measures using procurement equity tools, and quantification of the amount of additional funding and personnel required to both implement specific remedial measures and fully implement the program; and (b) To support the intent of the general assembly in enacting this part 11, the remediation of disparities in state procurement, through thoughtful, efficient, and effective implementation of the program that takes into account the professional expertise and lived experience of state procurement stakeholders as convened pursuant to subsection (2) of this section, it is necessary, appropriate, and in the best interest of the state to require the department to convene, contract with a facilitator to facilitate discussion among, engage in consultation with, and strongly consider the formal policy recommendations of a stakeholder group that may be comprised, to the extent practicable, of representatives of historically underutilized businesses and small businesses, governmental entities, federal and local organizations that provide procurement technical assistance or outreach to historically underutilized businesses and small businesses, and such other persons with relevant professional experience, including government procurement and government contracting experience as the department deems appropriate. (2) The department shall convene, contract with a facilitator to facilitate discussion among, and engage in consultation with a stakeholder group, which, to the extent practicable may consist of: (a) The following state government employees: (I) An employee of the department who has extensive experience and expertise in state procurement; (II) An employee of the office who has been involved in the office's administration of or is otherwise knowledgeable about the procurement technical assistance program, the small business COVID-19 grant program created in section 24-48.5-126, or the COVID-19 relief for disproportionately impacted businesses program created in section 24-48.5-127; (III) An employee of the minority business office; and (IV) An employee of the department of transportation who has significant experience and expertise regarding the department of transportation's civil rights programs that establish, administer, and enforce the department of transportation's diversity, equity, and inclusion requirements for engineers, contractors, consultants, local agencies, and transit providers; (b) An employee of the city and county of Denver's division of small business opportunity who has significant experience and expertise regarding the programs and operation of the division; (c) An employee of the procurement technical assistance center; (d) An owner or high-level employee of each of the following types of historically underutilized businesses: (I) A business owned by one or more women; (II) A business owned by one or more African American persons; (III) A business owned by one or more Asian American persons; (IV) A business owned by one or more Hispanic American persons; (V) A business owned by one or more Native American persons; and (VI) A business owned by one or more persons with disabilities; rically underutilized businesses: (I) A business owned by one or more women; (II) A business owned by one or more African American persons; (III) A business owned by one or more Asian American persons; (IV) A business owned by one or more Hispanic American persons; (V) A business owned by one or more Native American persons; and (VI) A business owned by one or more persons with disabilities; (e) To the extent practicable, an owner or high-level employee of each of the following types of businesses that are not historically underutilized businesses and that have competed for or been awarded state contracts: (I) A small business; (II) A business that is not a small business but that has fewer than five hundred employees and a demonstrable record of successful engagement and contracting with small businesses; (III) A business that has more than five hundred employees and a demonstrable record of successful engagement and contracting with small businesses; and (IV) With consideration for the volume of construction contracts awarded annually by the state, a representative of the associated general contractors; and (f) Any other individuals who have a demonstrable commitment to furthering equity in government procurement and substantial knowledge of procurement equity best practices who the department deems necessary or appropriate to include in the stakeholder group. (3) The stakeholder group convened as required by subsection (2) of this section shall: (a) Closely examine the findings, conclusions, and recommendations in the state disparity study report; (b) Using the information in the state disparity study report as a baseline for studying procurement equity programs in other states and at the federal and large local government level, identify best practices for successful procurement equity program implementation and administration; and (c) No later than November 1, 2023, present to the department a report of specific findings, remedial measures, and recommendations that includes, at a minimum: (I) Prioritization of the recommendations outlined in the state disparity study report. The prioritization may include written explanations of recommendations that specify whether recommendations in the report will be implemented and the remedial measures that will be taken to support program implementation in a manner that is sufficiently comprehensive to meet the state's goal of reducing disparities between the availability of historically underutilized businesses and their utilization in state procurement and increasing such utilization. (II) Confirmation or refutation of the disparity study report finding of no substantial disparity between available and utilized lesbian, gay, bisexual, and transgender businesses; (III) Confirmation or refutation of the disparity study report finding of no substantial disparity between availability and utilization of businesses owned by Asian American persons for construction, construction-related professional services, goods and other services contracts, brokerage, and investment; (IV) A preliminary estimate of the amount of initial and ongoing funding, personnel, information technology resources, and other resources needed to implement the policy recommendations and remedial measures in accordance with subsection (3)(b) of this section; (V) A step-by-step timeline for full implementation of the program; (VI) Suggested methodologies and metrics for monitoring and evaluating the success of the program and ensuring program accountability; and (VII) Identification of any public or private sources of funding or other resources that may be available to expedite the implementation or ongoing administration of the program and reduce costs to the state. p timeline for full implementation of the program; (VI) Suggested methodologies and metrics for monitoring and evaluating the success of the program and ensuring program accountability; and (VII) Identification of any public or private sources of funding or other resources that may be available to expedite the implementation or ongoing administration of the program and reduce costs to the state. (4) The department shall report on the progress and policy recommendations and any suggested remedial measures of the stakeholder group, the preliminary plans, recommendations, and remedial measures that the department has taken regarding the full implementation of the program, and any recommendations that the department has regarding the need for related legislation during its January 2025 annual presentation to legislative oversight committees required by section 2-7-203 (2)(a). In preparation for the presentation, the department shall give strong consideration to the policy recommendations report provided by the stakeholder group as required by subsection (3)(c) of this section.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026

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