Bill Text: MI HB6018 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Local government; other; standards for certain local government contracts; require local governments to establish. Creates new act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-04-13 - Printed Bill Filed 03/26/2010 [HB6018 Detail]
Download: Michigan-2009-HB6018-Introduced.html
HOUSE BILL No. 6018
March 25, 2010, Introduced by Rep. Valentine and referred to the Committee on Appropriations.
A bill to require local units of government to establish
certain standards for certain contracts; and to prescribe the
powers and duties of certain local governmental officers and
entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Local unit of government" means a county, city, village,
township, district, local authority, intergovernmental authority,
or intergovernmental entity.
(b) "Michigan-based business" means a business that would
qualify for a preference in a procurement contract with this state
as determined under section 268 of the management and budget act,
1984 PA 431, MCL 18.1268.
Sec. 2. The governing body of a local unit of government shall
adopt written policies governing the procurement of supplies,
materials, services, insurance, utilities, third-party financing,
equipment, and all other items or services needed by the local unit
of government. The policies shall be consistent with the
requirements of this act.
Sec. 3. Except as otherwise provided in this act, a local unit
of government shall use competitive solicitation for any
procurement with a value of $50,000.00 or more and obtain approval
by the governing body of the local unit of government before
entering into a procurement contract unless 1 or more of the
following apply:
(a) Procurement of goods or services is necessary for the
imminent protection of public health or safety or to mitigate an
imminent threat to public health or safety, as determined by the
local unit of government.
(b) Procurement of goods or services is for emergency repair
or construction caused by unforeseen circumstances when the repair
or construction is necessary to protect life or property.
(c) Procurement of goods or services is in response to a
declared state of emergency or state of disaster under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(d) Procurement of goods or services is in response to a
declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
(e) Procurement of goods or services is in response to a
declared state of energy emergency under 1982 PA 191, MCL 10.81 to
10.89.
Sec. 4. A local unit of government shall solicit competitive
bids from the private sector whenever practicable to efficiently
and effectively meet the needs of the local unit of government. A
local unit of government shall first determine that competitive
solicitation of bids from the private sector is not appropriate
before it uses any other procurement method for an acquisition.
When competitive bids are not solicited by a local unit of
government, the procurement shall proceed consistently with
policies or procedures approved by the local unit of government to
assure that goods or services are purchased at fair and reasonable
prices to secure the best value for the local unit of government.
Sec. 5. A local unit of government shall not award a contract
for the construction, repair, remodeling, or demolition of a
facility unless the contract is let pursuant to a competitive
bidding procedure approved by the governing body of the local unit
of government. All of the following apply to a contract described
in this section:
(a) The governing body of the local unit of government shall
advertise for the bids required under this section by placing an
advertisement for bids at least once in a newspaper of general
circulation in the area where the building or addition is to be
constructed or where the repair or renovation of an existing
building is to take place and by posting an advertisement for bids
for at least 2 weeks on the department of management and budget
website on a page on the website maintained for this purpose.
(b) The advertisement for bids shall do all of the following:
(i) Specify the date and time by which all bids must be
received by the governing body of the local unit of government.
(ii) State that the governing body of the local unit of
government will not consider or accept a bid received by the
governing body after the date and time specified for bid
submission.
(iii) Identify the time, date, and place of a public meeting at
which the governing body of the local unit of government or its
designee will open and read aloud each bid received by the
governing body by the date and time specified in subparagraph (i).
(iv) State that the bid shall be accompanied by a sworn and
notarized statement disclosing any familial relationship that
exists between the owner or any employee of the bidder and any
member of the governing body of the local unit of government. The
governing body of a local unit of government shall not accept a bid
that does not include this sworn and notarized disclosure
statement.
(c) The governing body of the local unit of government shall
require each bidder for a contract under this section to file with
the governing body security in an amount not less than 1/20 of the
amount of the bid conditioned to secure the local unit of
government from loss or damage by reason of the withdrawal of the
bid or by the failure of the bidder to enter a contract for
performance, if the bid is accepted by the governing body of the
local unit of government.
(d) The governing body of the local unit of government shall
not open, consider, or accept a bid that the governing body
receives after the date and time specified for bid submission in
the advertisement for bids described in subdivision (b).
(e) At a public meeting identified in the advertisement for
bids described in subdivision (b), the governing body of the local
unit of government or its designee shall open and read aloud each
bid that the governing body received at or before the time and date
for bid submission specified in the advertisement for bids. The
governing body of the local unit of government may reject any or
all bids, and if all bids are rejected, shall readvertise in the
manner required by this section.
(f) This section does not apply to buildings, renovations, or
repairs costing less than $50,000.00 or to repair work normally
performed by local unit of government employees.
(g) A local unit of government shall not enter into a cost
plus construction contract unless all of the following apply:
(i) The contract cost is less than $50,000.00.
(ii) The contract is for emergency repair or construction
caused by unforeseen circumstances.
(iii) The repair or construction is necessary to protect life or
property.
(iv) The contract complies with any applicable contract
requirements of the department of civil rights.
Sec. 6. The selection of architects, professional engineers,
professional surveyors, and other providers of professional
services shall be made by a local unit of government in accordance
with competitive, qualifications-based selection processes and
procedures for the type of professional service required by the
local unit of government.
Sec. 7. All other things being equal, in all purchases made by
a local unit of government, preference shall be given to products
manufactured or services offered by a Michigan-based business, if
consistent with federal law. The department of treasury shall
disclose to a local unit of government verifying information
relating to a Michigan-based business as described in section
268(3) of the management and budget act, 1984 PA 431, MCL 18.1268.
Sec. 8. A local unit of government may enter into a
cooperative purchasing agreement or participate in a cooperative
purchasing program with 1 or more other local units of government,
other governmental entities in this state, or this state, for the
purchase of goods, including, but not limited to, recycled goods,
and services necessary for local unit of government programs.
Sec. 9. Consistent with the requirements of this act, a local
unit of government may enter into lease purchases or installment
purchases for periods not exceeding the anticipated useful life of
the items purchased unless otherwise prohibited by law.
Sec. 10. A local unit of government may limit a solicitation
to prequalified vendors to meet statutory or licensing requirements
applicable to the solicitation or when the time necessary to verify
vendor qualifications would jeopardize timely award of contracts.
Sec. 11. A local unit of government may debar a vendor from
participation in the procurement process and from contract award
upon notice and a finding that the vendor is not able to perform
responsibly, or that the vendor, or an officer or an owner of a 25%
or greater share of the vendor, has demonstrated a lack of
integrity that could jeopardize the interest of the local unit of
government if the local unit of government were to contract with
the vendor.
