Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1318 3
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By: Representative Cavenaugh 5
By: Senator J. Bryant 6
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For An Act To Be Entitled 8
AN ACT CONCERNING TH E ALLOWABLE BASES FO R BIDS FOR 9
CERTAIN MUNICIPAL PU RCHASES AND CONTRACT S; AND FOR 10
OTHER PURPOSES. 11
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Subtitle 14
CONCERNING THE ALLOWABLE BASES FOR BIDS 15
FOR CERTAIN MUNICIPAL PURCHASES AND 16
CONTRACTS. 17
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
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SECTION 1. Arkansas Code § 14 -58-303(b)(2)(A), concerning municipal 22
purchases and contracts, is amended to read as follows: 23
(2)(A)(i) Except as provided under § 14-58-104, in a city of the 24
first class in which the amount of expenditure for any purpose or contract 25
exceeds the sum of thirty-five thousand dollars ($35,000), the mayor or the 26
mayor's authorized representative shall invite competitive bidding on the 27
purpose or contract by legal advertisement in any local newspaper. 28
(ii) Bids received pursuant to the advertisement 29
shall be opened and read on the date set for receiving the bids in the 30
presence of the mayor or the mayor's authorized representative. 31
(iii) The mayor or the mayor's authorized 32
representative has exclusive power to award the bid to the lowest responsible 33
bidder, subject to the provisions in subdivision (b)(2)(A)(iv) of this 34
section, and may reject any and all bids received. 35
(iv) For the purchase of supplies, apparatus, 36 HB1318
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equipment, materials, and other items under this subdivision (b)(2), the city 1
may base its award on the following: 2
(a) The lowest immediate cost; 3
(b) The lowest demonstrated life cycle cost; 4
(c) The lowest demonstrated term costs; or 5
(d) A combination of the lowest immediate 6
cost, the lowest demonstrated life cycle cost, and the lowest demonstrated 7
term costs. 8
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SECTION 2. Arkansas Code § 14 -58-303(d), concerning municipal 10
purchases and contracts, is amended to read as follows: 11
(d) For purposes of As used in this section: 12
(1) "Lowest demonstrated life cycle cost" means the cost of an 13
asset as credibly established by a bidder over the life cycle of the asset, 14
taking into consideration the asset's initial capital costs, maintenance 15
costs, operating costs, and residual value at the end of the life of the 16
asset; 17
(2) "Lowest demonstrated term cost" means the cost of an asset 18
as credibly established by a bidder over a portion of the life cycle of the 19
asset, taking into consideration the asset's initial capital costs, 20
maintenance costs, and operating costs during the portion of the life cycle 21
of the asset; 22
(3) "Lowest responsible bidder" means the bidder who offers 23
trustworthiness and responsibility concerning the subject purchase and whose 24
bid offers the lowest cost to the city under subdivision (b)(2)(A) of this 25
section; 26
(4) “Reverse internet auction” means an internet-based process 27
in which bidders: 28
(A) Are given specifications for items and services being 29
sought for purchase by a municipality; and 30
(B) Bid against one another in order to lower the price of 31
the item or service to the lowest possible level; and 32
(2)(5) “Reverse internet auction vendor” means an internet-based 33
entity that hosts a reverse internet auction. 34
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