Bill > A4724

Introduced Session

This bill establishes a sheltered market program that allows for State agencies, with the approval of the Chief Diversity Officer, to designate certain public contracts for availability to contractors who have been certified by the Department of the Treasury. This program will be available to contractors who are certified as a disabled veterans' business, minority business, women's business, small business, economically or socially disadvantaged business, LGTBQ+-owned business, or veteran-owned business. The bill directs the Chief Diversity Officer to establish criteria for determining which contracts should be designated for this program, including the degree of historical underutilization of qualified business enterprises based on a review of qualified business enterprises in the State's central certification registry or a State-commissioned disparity study. State agencies will be permitted to object to the designation of certain contracts for the program if they determine such designation would be contrary to an important State public policy, the practical limitations of the agency or contract, or an applicable legal order. The bill also requires that State agencies publish all contracts or categories of contracts approved for the sheltered market program on their respective websites prior to opening such contracts for bidding, and the chief publishes such contracts on the department's website. The bill further requires State agencies and the chief to conduct outreach regarding available contracts under the sheltered market program to qualified business enterprises and State agencies to conduct general or pre-bid submission conferences or workshops to help potential bidders understand the bidding process for the sheltered market program. State agencies will also be required to offer each bidder to a contract designated for the sheltered market program the option to debrief on the process following the award of the contract and conclusion of any challenges to contract awards after the expiration of the time period for challenges to be filed. This bill will require each State agency to submit an annual report to the chief on the implementation of the sheltered market program, including: (1) the number and dollar value of contracts awarded to qualified business enterprises under the sheltered market program; (2) the total number, the percentage, the total dollar value, and the percentage dollar value of contracts awarded by State agencies to qualified business enterprises eligible for participation in the sheltered market program; (3) recommendations for continuing, modifying, or terminating the sheltered market program; and (4) a description of efforts undertaken to increase contracting with qualified business enterprises. The bill provides that a State contract will not be awarded under the sheltered market program for a term to exceed three years, and that each contract will include termination for cause and termination for convenience clauses, consistent with the State agency's standard terms and conditions. Finally, the bill requires that prime contractors awarded contracts under the terms of the bill make a good faith effort to offer subcontracting opportunities to qualified business enterprises. The bill provides that failure on the part of a contractor to demonstrate a good faith effort may be cause for the rejection of bids made by that contractor. In determining whether a good faith effort has been made, the State agency and the chief will consider whether the contractor has advertised the opportunity to qualified business enterprises and (1) whether qualified business enterprises exhibited interest in working with the prime contractor on a particular project by attending, or having attended, a pre-bid conference, if any, scheduled by the State agency awarding the contract; and (2) whether qualified business enterprises, which have been solicited by the contractor, have responded in a timely fashion to the contractor's request to engage qualified business enterprises prior to the State agency's bid date. The chief and the State agency will also consider whether the contractor provided timely written notification of subcontracting opportunities to qualified business enterprises that appear in the State's central certification registry and whether the contractor can reasonably structure the amount of work to be performed under subcontracts to increase the likelihood of participation by qualified business enterprises.

Committee Categories

Tennille McCoy (D)*,  Annette Quijano (D)*,  Sterley Stanley (D)*,  Al Barlas (R),  Linda Carter (D),  Garnet Hall (D),  Verlina Reynolds-Jackson (D),  Bill Spearman (D),  Cleopatra Tucker (D), 

Reported and Referred to Assembly Labor Committee (on 09/23/2024)

Official Document