Bill Text: MI SB0502 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: State financing and management; purchasing; state contract preference for Michigan businesses; establish. Amends sec. 261 of 1984 PA 431 (MCL 18.1261).

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2009-05-07 - Referred To Committee On Commerce [SB0502 Detail]

Download: Michigan-2009-SB0502-Engrossed.html

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SB-0502, As Passed Senate, May 7, 2009

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 502

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 261 (MCL 18.1261), as amended by 2008 PA 133.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 261. (1) The department shall provide for the purchase

 

of, the contracting for, and the providing of supplies, materials,

 

services, insurance, utilities, third party financing, equipment,

 

printing, and all other items as needed by state agencies for which

 

the legislature has not otherwise expressly provided. In all

 

purchases made by the department, all other things being equal,

 

preference shall be given to products manufactured or services

 

offered by Michigan-based firms, if consistent with federal

 

statutes a preference of 10% of the amount of the contract shall be

 

granted to a Michigan business certified under section 268 or to

 

any business if the products identified in the bid are made,

 

manufactured, or grown in this state. The department shall solicit

 

competitive bids from the private sector whenever practicable to

 

efficiently and effectively meet the state's needs. The department

 

shall first determine that competitive solicitation of bids in the

 

private sector is not appropriate before it shall use any other

 

procurement method for an acquisition.

 

     (2) The department shall make all discretionary decisions

 

concerning the solicitation, award, amendment, cancellation, and

 

appeal of state contracts.

 

     (3) The department shall utilize competitive solicitation for

 

all purchases authorized under this act 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

 

director or his or her designated representative.

 

     (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.

 

     (f) Procurement of goods or services is within a state

 

agency's purchasing authority delegated under subsection (4), and

 

the state agency has established policies or procedures approved by

 

the department to ensure that goods or services are purchased by

 

the state agency at fair and reasonable prices.

 

     (4) The department may delegate its procurement authority to

 

other state agencies within dollar limitations and for designated

 

types of procurements. The department may withdraw delegated

 

authority upon a finding that a state agency did not comply with

 

departmental procurement directives.

 

     (5) The department 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.

 

     (6) The department shall issue directives for the procurement,

 

receipt, inspection, and storage of supplies, materials, and

 

equipment, and for printing and services needed by state agencies.

 

The department shall provide standard specifications and standards

 

of performance applicable to purchases.

 

     (7) The department may enter into a cooperative purchasing

 

agreement with 1 or more other states or public entities for the

 

purchase of goods, including, but not limited to, recycled goods,

 

and services necessary for state programs.

 

     (8) If a solicitation aggregates multiple types of products,

 

the department shall allow a bidder to submit a bid for 1 or more

 

of the types of products included in the solicitation and allow for

 

evaluation and award of the solicitation by item type. The

 

department may exclude from the requirement for separate evaluation

 

and award any item type with a value of less than $1,000.00.

 

     (9) (8) In awarding a contract under this section, the

 

department shall give a preference of up to 10% of the amount of

 

the contract to a qualified disabled veteran. If the qualified

 

disabled veteran otherwise meets the requirements of the contract

 

solicitation and with the preference is the lowest bidder, the

 

department shall enter into a procurement contract with the

 

qualified disabled veteran under this act. If 2 or more qualified

 

disabled veterans are the lowest bidders on a contract, all other

 

things being equal, the qualified disabled veteran with the lowest

 

bid shall be awarded the contract under this act.

 

     (10) (9) It is the goal of the department to award each year

 

not less than 5% of its total expenditures for construction, goods,

 

and services to qualified disabled veterans. The department may

 

count toward its 5% yearly goal described in this subsection that

 

portion of all procurement contracts in which the business entity

 

that received the procurement contract subcontracts with a

 

qualified disabled veteran. Each year, the department shall report

 

to each house of the legislature on all of the following for the

 

immediately preceding 12-month period:

 

     (a) The number of qualified disabled veterans who submitted a

 

bid for a state procurement contract.

 

     (b) The number of qualified disabled veterans who entered into

 

procurement contracts with this state and the total value of those

 

procurement contracts.

 

     (c) Whether the department achieved the goal described in this

 

subsection.

 

     (d) The recommendations described in subsection (10) (11).

 

     (11) (10) Each year, the department shall review the progress

 

of all state agencies in meeting the 5% goal with input from

 

statewide veterans service organizations and from the business

 

community, including businesses owned by qualified disabled

 

veterans, and shall make recommendations to each house of the

 

legislature regarding continuation, increases, or decreases in the

 

percentage goal. The recommendations shall be based upon the number

 

of businesses that are owned by qualified disabled veterans and on

 

the continued need to encourage and promote businesses owned by

 

qualified disabled veterans.

 

     (12) (11) To assist the department in reaching the goal

 

described in subsection (9) (10), the governor shall recommend to

 

the legislature changes in programs to assist businesses owned by

 

qualified disabled veterans.

 

     (13) (12) As used in this section:

 

     (a) "End-product" means the item sought by a governmental body

 

of this state and described in the solicitation, including all

 

component parts, and in final form ready for the use intended by

 

the governmental body.

 

     (b) "Grown" means produced, cultivated, raised, or harvested

 

timber, agricultural produce, or livestock on the land or

 

cultivated, raised, caught, or harvested products or food from the

 

water, resulting in an end-product that is locally derived from the

 

product cultivated, raised, caught, or harvested.

 

     (c) "Made" means assembled, fabricated, or processed component

 

parts into a finished end-product, the value of which assembly,

 

fabrication, or processing is a significant portion of the value of

 

the finished end-product.

 

     (d) "Manufactured" means made or processed raw materials into

 

a finished end-product.

 

     (e) (a) "Qualified disabled veteran" means a business entity

 

that is 51% or more owned by 1 or more veterans with a service-

 

connected disability.

 

     (f) (b) "Service-connected disability" means a disability

 

incurred or aggravated in the line of duty in the active military,

 

naval, or air service as described in 38 USC 101(16).

 

     (g) (c) "Veteran" means a person who served in the army, air

 

force, navy, marine corps, or coast guard and who was discharged or

 

released from his or her service with an honorable or general

 

discharge.