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H 51

PROFESSIONAL SERVICE CONTRACTS – Amends existing law to revise provisions regarding professional service fees for certain contracts.

68th Legislature, 1st Regular Session (2025)

Raises the professional service contract threshold for RFQ-based procurement from $50,000 to $100,000, expanding formal qualifications-based selection for larger projects.

Reported Printed and Referred to Commerce & Human Resources
#construction #contracts #fees #government #lands #surveyingandsurveyors
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Bill Summary · H 51

Idaho House Bill 51 (H 51) — Summary

Overview

  • Bill: H 51
  • Title: Professional Service Contracts – Amends provisions regarding professional service fees for certain contracts
  • Purpose: Increase the professional services fee threshold before a formal request for qualifications (RFQ) is required, to align with inflationary pressures in the construction industry.
  • Sponsor/Committee: Commerce and Human Resources
  • Status: Reported Printed and Referred to Commerce & Human Resources
  • Introduced: January 24, 2025
  • Emergency/Effective Date: Emergency clause declared; effective date July 1, 2025
  • Fiscal note: No impact on state General Fund, dedicated funds, or federal funds; change is procedural in procurement

What the bill would change

  • Raises the threshold for professional service contracts that must use a formal RFQ process from $50,000 to $100,000.
  • Applies to design professionals, construction managers, and professional land surveyors (and professionals licensed under relevant Idaho codes).
  • Projects exceeding the $100,000 threshold, and not already exempt from bidding, must follow the RFQ-based selection process and negotiated contract framework described in the bill.
  • Projects below the threshold may use either the RFQ framework or the agency’s existing guidelines, followed by fee negotiation.

Key provisions and requirements (new process if threshold is met)

  1. Public agencies and political subdivisions must seek statements of qualifications and past performance data.
  2. Agencies must publish an RFQ describing criteria and procedures for scoring, ranking, and selecting qualified firms.
  3. Responses must be scored and ranked based on qualifications and demonstrated competence; rankings and scoring must be made public.
  4. Selection: highest-ranked (best qualified) firm is negotiated with for a contract or agreement at a price deemed reasonable and fair after considering value, scope, complexity, schedule, and nature of services.
  5. If negotiations with the top-ranked firm fail, agencies must renegotiate with the next highest-ranked firm, and so on, or re-commence the process until a contract is secured.
  6. If no satisfactory contract is reached, procurement can be canceled or restarted.
  7. Public notice requirements: RFQ process for $100,000+ thresholds must be published in a manner similar to public works projects.
  8. Agencies may use a preapproved list of two or more firms; if using a preapproved list, public notice is required for establishing the list, but not for selecting from it.
  9. Preapproved lists are valid for up to five years and can be canceled anytime if in the public’s interest.
  10. For contracts exceeding $100,000, the standard RFQ process applies; for contracts under $100,000, agencies may still use the RFQ framework or their own qualifications-based method, with fee negotiation to be fair and reasonable.

Who is affected

  • State and local public agencies and political subdivisions in Idaho, along with their agents, who procure professional services for engineering, architecture, landscape architecture, construction management, and land surveying.
  • Firms and professionals in design, construction management, surveying, and related licensed disciplines.
  • The public, which would see more formalized RFQ processes and increased transparency in selection and fee determination for larger professional service contracts.

Procedural and timeline aspects

  • Trigger threshold changes: $50,000 → $100,000 for requiring RFQ-based procurement.
  • Effective date: July 1, 2025 (with the emergency clause reinforcing immediate effect upon enactment).
  • Legislative path: Introduced 1/24/2025; Reported Printed and Referred to Commerce & Human Resources; JRA for printing earlier in the session.

Compiled from official sources — confirm details with the bill’s official record.

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