Bill Text: NC S404 | 2011-2012 | Regular Session | Enrolled
Bill Title: Dept. of Admin/Procurement Modernization.-AB
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-06-27 - Ch. SL 2011-338 [S404 Detail]
Download: North_Carolina-2011-S404-Enrolled.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
SENATE BILL 404
RATIFIED BILL
AN ACT to modernize procurement methods used by the secretary of administration and state departments, institutions, and agencies.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 143‑49 reads as rewritten:
"§ 143‑49. Powers and duties of Secretary.
The Secretary of Administration shall have power and authority, and it shall be his duty, subject to the provisions of this Article:
(1) To canvass sources of
supply, including sources of supply of materials and suppliesgoods
with recycled content, and to purchase or to contract for the purchase, lease
and lease‑purchase of all supplies, materials, equipment and other
tangible personal property goods required by the State government,
or any of its departments, institutions or agencies under competitive bidding
or otherwise as hereinafter provided.other suitable means authorized
by the Secretary including, without limitation, negotiations, reverse auctions,
a best value procurement method such as that defined in G.S. 143‑135.9(a)(1),
and the solicitation, offer, and acceptance of electronic bids. For purposes of
this Article, the term "goods" includes, without limitation, all
commodities, supplies, materials, equipment, and other tangible personal
property.
(2) To establish and enforce
specifications which shall apply to all supplies, materials and equipment goods
and services to be purchased or leased for the use of the State government
or any of its departments, institutions or agencies.
(3) To purchase or to
contract for, by sealed, competitive bidding or other suitable means, all
contractual services and needsmeans authorized by the Secretary
including, without limitation, negotiations, reverse auctions, a best value
procurement method such as that defined in G.S. 143‑135.9(a)(1), and
the solicitation, offer, and acceptance of electronic bids, all services of
the State government, or any of its departments, institutions, or agencies; or
to authorize any department, institution or agency to purchase or contract for
such services.
(3a) When To
request, and the Attorney General shall assign a representative of the office
of the Attorney General to assist in negotiation for the award of any
contract for contractual services exceeding a cost of one hundred thousand
dollars ($100,000) that requires negotiation with prospective contractors,
the Secretary shall request and the Attorney General shall assign a
representative of the office of the Attorney General to assist in negotiation
for the award of the contract.contractors. It shall be the duty of
such representative to assist and advise in obtaining the most favorable
contract for the State, to evaluate all proposals available from prospective
contractors for that purpose, to interpret proposed contract terms and to
advise the Secretary or his representatives of the liabilities of the State and
validity of the contract to be awarded. All contracts and drafts of such
contracts shall be prepared by the office of the Attorney General and copies
thereof shall be retained by such office for a period of three years following
the termination of such contracts. The term "contractual services" as
used in this subsection and G.S. 143‑52.2 shall mean work
performed by an independent contractor requiring specialized knowledge,
experience, expertise or similar capabilities wherein the service rendered does
not consist primarily of acquisition by this State of equipment or materials
and the rental of equipment, materials and supplies. The term "negotiation"
as used herein in this subdivision shall not be deemed to refer to
contracts entered into or to be entered into as a result of a competitive
bidding process.
…
(6) To make available to
nonprofit corporations operating charitable hospitals, to local nonprofit
community sheltered workshops or centers that meet standards established by the
Division of Vocational Rehabilitation of the Department of Health and Human
Services, to private nonprofit agencies licensed or approved by the Department
of Health and Human Services as child placing agencies, residential child‑care
facilities, private nonprofit rural, community, and migrant health centers
designated by the Office of Rural Health and Resource Development, to private
higher education institutions that are defined as "institutions" in G.S. 116‑22(1),
and to counties, cities, towns, local school administrative units, governmental
entities and other subdivisions of the State and public agencies thereof in the
expenditure of public funds, the services of the Department of Administration
in the purchase of materials, supplies and equipmentgoods and
services under such rules, regulations and procedures as the Secretary of
Administration may adopt. In adopting rules and regulations any or all
provisions of this Article may be made applicable to such purchases and
contracts made through the Department of Administration, and in addition the
rules and regulations shall contain a requirement that payment for all such
purchases be made in accordance with the terms of the contract.
…
(17) To establish procedures to permit State government, or any of its departments, institutions, or agencies, to join with any federal, State, or local government agency, entity, or subdivision, or any nonprofit organization in cooperative purchasing plans, projects, arrangements, or agreements if the interest of the State would be served thereby."
SECTION 2. G.S. 143‑51 reads as rewritten:
"§
143‑51. Reports to Secretary required of all agencies as to needs.
needs and purchases.
(a) It shall be the
duty of all departments, institutions, or agencies of the State government to
furnish to the Secretary of Administration when requested, and on forms to be
prescribed by him, estimates of all supplies, materials, contractual
services and equipmentgoods and services needed and required by such
department, institution or agency for such periods in advance as may be
designated by the Secretary of Administration.
(b) In addition to the report required by subsection (a) of this section, all departments, institutions, or agencies of the State government shall furnish to the Secretary of Administration when requested, and on forms to be prescribed by him, actual expenditures for all goods and services needed and required by the department, institution, or agency for such periods after the expenditures have been made as may be designated by the Secretary of Administration."
SECTION 3. G.S. 143‑52 reads as rewritten:
"§ 143‑52. Competitive bidding procedure; consolidation of estimates by Secretary; bids; awarding of contracts; cost plus percentage of cost contracts strictly prohibited.
(a) As feasible, theThe
Secretary of Administration will shall compile and consolidate
all such estimates of supplies, materials, printing, equipment and
contractualgoods and services needed and required by State
departments, institutions and agencies to determine the total requirements of
any given commodity. Where such total requirements will involve an expenditure
in excess of the expenditure benchmark established under the provisions of G.S. 143‑53.1
and where the competitive bidding procedure is employed as hereinafter
provided, sealed bids shall be solicited by advertisement in a newspaper widely
distributed in this State or through electronic means, or both, as determined
by the Secretary to be most advantageous, at least once and at least 10 days
prior to the date designated for opening. Except as otherwise provided under
this Article, contracts for the purchase of supplies, materials or equipment
goods and services shall be based on competitive bids and acceptance
made of the lowest and bestsuitable means authorized by the Secretary as
provided in G.S. 143‑49. The acceptance of bid(s) most
advantageous to the State as shall be determined upon
consideration of the following criteria: prices offered; best value, as the
term is defined in G.S. 143‑135.9(a)(1); the quality of the
articles offered; the general reputation and performance capabilities of the
bidders; the substantial conformity with the specifications and other
conditions set forth in the request for bids; the suitability of the articles
for the intended use; the personal or related services needed; the
transportation charges; the date or dates of delivery and performance; and such
other factor(s) deemed pertinent or peculiar to the purchase in question, which
if controlling shall be made a matter of record. Competitive bids on such
contracts shall be received in accordance with rules and regulations to be
adopted by the Secretary of Administration, which rules and regulations shall
prescribe for the manner, time and place for proper advertisement for such
bids, the time and place when bids will be received, the articles for which
such bids are to be submitted and the specifications prescribed for such
articles, the number of the articles desired or the duration of the proposed contract,
and the amount, if any, of bonds or certified checks to accompany the bids.
Bids shall be publicly opened. Any and all bids received may be rejected. Each
and every bid conforming to the terms of the invitation, together with the name
of the bidder, shall be tabulated and that tabulation shall become public
record in accordance with the rules adopted by the Secretary. All contract
information shall be made a matter of public record after the award of
contract. Provided, that trade secrets, test data and similar proprietary
information may remain confidential. A bond for the faithful performance of any
contract may be required of the successful bidder at bidder's expense and in
the discretion of the Secretary of Administration. When the dollar value of a
contract for the purchase, lease, or lease/purchase of equipment, materials,
and suppliesgoods exceeds the benchmark established by G.S. 143‑53.1,
the contract shall be reviewed by the Board of Awards pursuant to G.S. 143‑52.1
prior to the contract being awarded. After contracts have been awarded, the
Secretary of Administration shall certify to the departments, institutions and
agencies of the State government the sources of supply and the contract price
of the supplies, materials and equipmentgoods so contracted for.
…."
SECTION 4. G.S. 143‑53 reads as rewritten:
"§ 143‑53. Rules.
(a) The Secretary of Administration may adopt rules governing the following:
…
(3) Defining contractual
services for the purposes of G.S. 143‑49(3) and G.S. 143‑49(5).
…
(5) Prescribing conditions
under which purchases and contracts for the purchase, installment or lease‑purchase,
rental or lease of equipment, materials, supplies or goods and services
may be entered into by means other than competitive bidding, including, but not
limited to, negotiation, reverse auctions, and acceptance of electronic bids. Reverse
auctions may only be utilized for the purchase or exchange of supplies,
equipment, and materials as provided in G.S. 115C‑522.
Notwithstanding the provisions of subsections (a) and (b) of this section, any
waiver of competition for the purchase, rental, or lease of equipment,
materials, supplies, orgoods and services is subject to prior review
by the Secretary, if the expenditure exceeds ten thousand dollars ($10,000).
The Division may levy a fee, not to exceed one dollar ($1.00), for review of
each waiver application.
…
(7) Prescribing conditions
and procedures governing the purchase of used equipment, materials and
supplies.goods.
…."
SECTION 5. G.S. 143‑55 reads as rewritten:
"§
143‑55. Requisitioning for supplies by agencies; must purchase
through sources certified.
(a) Unless otherwise
provided by law, after where sources of supply have been
established by contract and certified by the Secretary of Administration to the
said departments, institutions and agencies as herein provided for, it shall be
the duty of all departments, institutions and agencies to make requisition or
issue orders on forms to be prescribed by the Secretary of Administration, for all
supplies, materials and equipmentpurchases required by them upon the
sources of supply so certified, and, except as herein otherwise provided for,
it shall be unlawful for them, or any of them, to purchase any supplies,
materials or equipment from other sources than those certified by
the Secretary of Administration. One copy of such requisition or order shall be
furnished to and when requested by the Secretary of Administration.
…."
SECTION 6. This act becomes effective July 1, 2011.
In the General Assembly read three times and ratified this the 17th day of June, 2011.
_____________________________________
Walter H. Dalton
President of the Senate
_____________________________________
Thom Tillis
Speaker of the House of Representatives
_____________________________________
Beverly E. Perdue
Governor
Approved __________.m. this ______________ day of ___________________, 2011
